Following are selected balance sheet accounts for the Third State Bank: vault cash = $2 million; U.S.
Question:
Following are selected balance sheet accounts for the Third State Bank: vault cash = $2 million; U.S. government securities = $5 million; demand deposits = $13 million; non-transactional accounts = $20 million; cash items in process of collection = $4 million; loans to individuals = $7 million; loans secured by real estate = $9 million; federal funds purchased = $4 million; and bank premises = $11 million.
a. From these accounts, select only the asset accounts and calculate the bank’s total assets.
b. Calculate the total liabilities for the Third State Bank.
c. Based on the totals for assets and liabilities, determine the amount in the owners’ capital account.
Balance SheetBalance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Step by Step Answer:
a Vault cash 2 million Cash in process of collection 4 US g...View the full answer
Introduction to Finance Markets Investments and Financial Management
ISBN: 978-1118492673
15th edition
Authors: Melicher Ronald, Norton Edgar
