The Coppock Bank began the day with $10,000,000 in its reserve account and ended the day with the same amount. If loans, other assets, and Treasury securities were $3,000,000 and owner's equity was $2,000,000, what is the bank's total amount of assets?

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Business

Jimmy

31 May, 07:28

The Coppock Bank began the day with $10,000,000 in its reserve account and ended the day with the same amount. If loans, other assets, and Treasury securities were $3,000,000 and owner's equity was $2,000,000, what is the bank's total amount of assets?

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Answers (1)

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Kristin Rubio · Answer 1

The answer is: $13,000,000

Explanation:

To calculate Coppock Bank's total assets we can use the following formula:

bank assets = reserve account + loans + treasury securities + other assets

bank assets = $10,000,000 + $3,000,000 = $13,000,000

The balance sheet equation is: assets = liabilities + equity

So the $2,000,000 in equity are not included in the bank's assets