The following table shows the balance sheet for United Community Bank. Compute the value of the bank's capital and enter it in the balance sheet. Then answer the question that follows. Balance sheet of United Community Bank as of January 4, 2021 Assets Liabilities Reserves Securities Loans Total $175,000 Checkable deposits $1,200,000 $4,300,000 $5,675,000 Bank's capital (net worth). Total $5,525,000 $5,675,000 Suppose that Amy, a borrower of United Community Bank, defaults on a $350,000 loan, and the collateral offered to get the loan is worthless. This will the loans outstanding portion of the bank's balance sheet, and it will the bank's capital to $ In this situation, the bank is. Grade It Now Save & Continue Continue without saving

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The following table shows the balance sheet for United Community Bank.
Compute the value of the bank's capital and enter it in the balance sheet. Then answer the question that follows.
Balance sheet of United Community Bank as of January 4, 2021
Liabilities
Reserves
Loans
Total
Assets
Securities $1,200,000.
$175,000 Checkable deposits
$4,300,000
Bank's capital (net worth)
$5,675,000 Total
$5,525,000
$5,675,000
Suppose that Amy, a borrower of United Community Bank, defaults on a $350,000 loan, and the collateral offered to get the loan is worthless.
This will
the loans outstanding portion of the bank's balance sheet, and it will
the bank's capital to $
In this situation, the bank is.
Grade It Now
Save & Continue
Continue without saving
Transcribed Image Text:The following table shows the balance sheet for United Community Bank. Compute the value of the bank's capital and enter it in the balance sheet. Then answer the question that follows. Balance sheet of United Community Bank as of January 4, 2021 Liabilities Reserves Loans Total Assets Securities $1,200,000. $175,000 Checkable deposits $4,300,000 Bank's capital (net worth) $5,675,000 Total $5,525,000 $5,675,000 Suppose that Amy, a borrower of United Community Bank, defaults on a $350,000 loan, and the collateral offered to get the loan is worthless. This will the loans outstanding portion of the bank's balance sheet, and it will the bank's capital to $ In this situation, the bank is. Grade It Now Save & Continue Continue without saving
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