Question

*8) What is the ending cash balance for March?*

A) ($50,000)
B) $6,000
C) $5,600
D) $6,600
Objective 6.A

Answer 1

The bank's T-account balance sheet shows assets totaling $620 and liabilities of $400. Subtracting liabilities from assets, the bank's net worth is calculated to be $220.

Step-by-step explanation:

Calculating the Bank's Net Worth

The question involves setting up a T-account balance sheet for a bank and then calculating the bank's net worth. The T-account will help us understand the bank's financial position by listing its assets and liabilities. Here's how the balance sheet would look:

• Assets:
• Liabilities:
• Net Worth:

Therefore, the bank's net worth is $220.