Question

Transactions and events during 2018 (summarized in thousands of dollars) follow: a. Borrowed $12 cash on March 1 using a short-term note b. Purchased land on March 2 for future building site; paid cash, $9 c. Issued additional shares of common stock on April 3 for $32. d. Purchased software on July 4, $10 cash e. Purchased supplies on account on October 5 for future use, $18 f Paid accounts payable on November 6, $13 g. Signed a $25 service contract on November 7 to start February 1, 2019 h. Recorded revenues of $144 on December 8, including $32 on credit and $112 collected in cash i. Recognized salaries and wages expense on December 9, $77 paid in cash . Collected accounts receivable on December 10, $16

data for adjusting journal entries as of december 31: unrecorded amortization for the year on software, $8. supplies counted on december 31, 2021, $12. depreciation for the year on the equipment, $5. interest of $1 to accrue on notes payable. salaries and wages earned but not yet paid or recorded, $11. income tax for the year was $7. it will be paid in 2022.

Answer 1

A bank's T-account balance sheet can include assets such as deposits, reserves, government bonds, and loans, while its liabilities are represented by its deposits. The bank's net worth is calculated by subtracting the liabilities from the assets.

Step-by-step explanation:

To set up a T-account balance sheet for the bank, we need to list out its assets and liabilities. The bank's assets include deposits ($400), reserves ($50), government bonds ($70), and loans ($500). Its liabilities are represented by its deposits while its net worth, or equity, is calculated by subtracting the liabilities from the assets. In this case, the bank's net worth is ($400 + $50 + $70 + $500) - $400 = $120.

Answer 2

To set up a T-account balance sheet for the bank, you list reserves ($50k), government bonds ($70k), and loans ($500k) as assets, and deposits ($400k) as liabilities. The bank's net worth is calculated by subtracting liabilities from assets, resulting in $220k.

Step-by-step explanation:

To set up a T-account balance sheet for a bank, we need to list the bank's assets on one side and its liabilities and net worth (or equity) on the other side. The T-account is so named because the bookkeeping entries are laid out in a way that resembles a 'T' shape, making it easy to see the relationship between assets and liabilities plus equity.

The bank's assets include:

• Reserves: $50 thousand
• Government bonds: $70 thousand
• Loans: $500 thousand

The bank's liabilities include:

• Deposits: $400 thousand

To calculate the bank's net worth, we subtract the total liabilities from the total assets:

Total Assets = Reserves + Government Bonds + Loans = $50 + $70 + $500 = $620 thousand

Total Liabilities = Deposits = $400 thousand

Net Worth = Total Assets - Total Liabilities = $620 - $400 = $220 thousand