Question

*13) What is the expected balance in Accounts Payable as of April 30?*

A) $37,250
B) $37,932
C) $28,500
D) $17,688
Objective 6.A

Answer 1

To set up the T-account for the bank, list assets, including reserves, loans, and government bonds, and liabilities, which consist of deposits. Calculate the net worth by subtracting total liabilities from total assets, resulting in the bank's owner's equity.

Step-by-step explanation:

To set up the T-account for the bank, we must divide it into two sections: assets on the left and liabilities plus owner's equity on the right. Here is how the T-account balance sheet would look based on the given information:

Reserves: $50

Loans: $500

Government Bonds: $70

Deposits: $400

The total assets of the bank add up to the sum of reserves, loans, and government bonds, which is $50 + $500 + $70 = $620. The total liabilities are equal to the deposits, which amount to $400.

To find the net worth of the bank, we subtract the total liabilities from the total assets: $620 - $400 = $220. This value is also referred to as the bank's owner's equity and represents the bank's net worth.

Therefore, the final T-account balance sheet would reflect assets of $620 and liabilities plus net worth of $220, ensuring that both sides of the T-account balance sheet balance out.