Final answer:
The total credits on Barnes Company's trial balance cannot be determined without additional data. However, for the bank scenario presented, a T-account balance sheet is set up showing the bank's assets and liabilities, and the net worth is calculated to be $220.
Step-by-step explanation:
The Barnes Company's total credits on its trial balance cannot be determined from the information provided. A trial balance is a bookkeeping worksheet where the balances of all ledgers are compiled into debit and credit account column totals that are equal. If additional details about the Barnes Company's accounts were provided, such as the total debits and whether the trial balance is balanced, an answer could be given. As for the bank scenario provided, we can set up a T-account balance sheet and calculate the bank's net worth using the information.
The T-account balance sheet for the bank with assets and liabilities is the following:
- Assets
- Reserves: $50
- Government Bonds: $70
- Loans: $500
- Liabilities
- Deposits: $400
To calculate the bank's net worth, we subtract the liabilities from the assets:
Net Worth = Assets - Liabilities
Net Worth = ($50 + $70 + $500) - $400
Net Worth = $620 - $400
Net Worth = $220