Final answer:
The $250 deposit that did not appear on the bank statement should be added to the bank balance in the bank reconciliation. In the T-account balance sheet, assets include reserves, government bonds, and loans, while liabilities include deposits. The bank's net worth is calculated by subtracting total liabilities from total assets, which in this case is $220.
Step-by-step explanation:
For the bank reconciliation question, if a $250 bank deposit made on the last day of the month did not appear on this month's bank statement, this item would be treated as added to the bank balance. This is because bank reconciliations involve adjusting the balance per bank and the balance per books (or book balance) to reflect any transactions not recorded by the bank or the company's books at the statement date. Since the deposit has not yet been recorded by the bank, we need to add it to the bank balance on the reconciliation to match the company's cash records.
For setting up a T-account balance sheet for the bank, one side would list the bank's assets including reserves, government bonds, and loans, and the other side would list the liabilities, primarily the customer deposits. To calculate the bank's net worth, we subtract the liabilities from the assets.
Assets:
Reserves: $50
Government Bonds: $70
Loans: $500
Total Assets: $620
Liabilities:
Deposits: $400
Total Liabilities: $400
The bank's net worth would then be calculated as Total Assets minus Total Liabilities, which is $620 - $400 = $220.