### Simple Balance Sheet Problem

10. Jane Dough finds that she needs more cash. She goes to her bank and withdraws \$500 from her checking account. As a result she now has \$500 more in currency and \$500 less in her checking account. Show the changes this transaction has on her bank's balance sheet:

 Jane's Bank Assets Liabilities and Net Worth Vault Cash \$ . Checking Accounts \$ Deposits at the Fed. Res \$ Savings Accounts \$ Loans \$ Other Liabilities \$ Securities \$ Net Worth \$ Other \$ Remember that balance sheets must balance. Also remember that we are looking not at Jane's balance sheet, but the balance sheet of her bank.

11. Here are balance sheets showing the assets, liabilities, and net worth of Jack and Jill:

 Jack * Jill Assets Liabilities & Net Worth Assets Liabilities & Net Worth Cash \$200 Net Worth \$1000 Cash \$10 Student loan \$200 Value of personal items \$800 . Value of personal items \$500 Net Worth___

a) What number belongs in Jill's Net Worth?

b) Suppose that these are their balance sheets immediately prior to the U.S. presidential election of 1976. Jack bets Jill \$20 that Gerald Ford will win. After the results are in, but before the bet is paid, what will their balance sheets look like? (Hint: You must add new categories to these balance sheets. Do what is logical.)

12. For a plantation in the South before the U.S. Civil War, slaves were an asset that would have appeared on the balance sheet of the plantation. What were the effects on the balance sheet of the plantation of the liberation of the slaves following the war?

 Assets Liabilities + Net Worth | | | |

b) The value of the plantation fell with the liberation of slaves. Where did that value go?

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