Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

4. Arrange the following items into an income statement. Label each item, place it in the appropriate category, and determine the bank's bottom-line net income.

image text in transcribed

4. Arrange the following items into an income statement. Label each item, place it in the appropriate category, and determine the bank's bottom-line net income. a. Interest paid on time deposits under $100,000: $78,002 b. Interest paid on jumbo CDs: $101,000 c. Interest received on U.S. Treasury and agency securities: $44,500 d. Fees received on mortgage originations: $23,000 e. Dividends paid to stockholders of $0.50 per share for 5,000 shares f. Provisions for loan losses: $18,000 g. Interest and fees on loans: $189,700 h. Interest paid on interest checking accounts: $33,500 i. Interest received on municipal bonds: $60,000 j. Employee salaries and benefits: $145,000 k. Purchase of a new computer system: $50,000 1. Service charge receipts from customer accounts: $41,000 m. Occupancy expense for bank building: $22,000 n. Taxes of 34 percent of taxable income are paid o. Trust department income equals: $15,000 4. Arrange the following items into an income statement. Label each item, place it in the appropriate category, and determine the bank's bottom-line net income. a. Interest paid on time deposits under $100,000: $78,002 b. Interest paid on jumbo CDs: $101,000 c. Interest received on U.S. Treasury and agency securities: $44,500 d. Fees received on mortgage originations: $23,000 e. Dividends paid to stockholders of $0.50 per share for 5,000 shares f. Provisions for loan losses: $18,000 g. Interest and fees on loans: $189,700 h. Interest paid on interest checking accounts: $33,500 i. Interest received on municipal bonds: $60,000 j. Employee salaries and benefits: $145,000 k. Purchase of a new computer system: $50,000 1. Service charge receipts from customer accounts: $41,000 m. Occupancy expense for bank building: $22,000 n. Taxes of 34 percent of taxable income are paid o. Trust department income equals: $15,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Assurance And Risk

Authors: W. Robert Knechel, Steve Salterio, Brian Ballou

3rd Edition

0324313187, 9780324313185

More Books

Students also viewed these Accounting questions