Amateur Bank is just starting out and has had the following transactions:
• Amateur Bank takes out a $3,000 loan from Pro Bank.
• Amateur bank has $2,500 invested in building and operations.
• Suzie deposits $1,200.
• Joe deposits $750.
• Robbie takes out a loan for $900.
• Jackie takes out a business loan for $625.
• Amateur Bank invests $1,000 in GoPro
-Refer to the scenario above. How much does Amateur Bank have in total liabilities?

Question

Quizplus · Accepted Answer

Amateur Bank's total liabilities include the $3,000 loan from Pro Bank, Robbie's $900 loan, and Jackie's $625 business loan, totaling $4,525. The deposits from Suzie and Joe are liabilities too, adding $1,200 and $750 respectively, making the total liabilities $4,525 + $1,200 + $750 = $6,475. However, given the options provided, it seems there was a mistake in my calculation as none of the options match. Re-evaluating the correct approach: the initial $3,000 loan from Pro Bank is a liability. The deposits from Suzie ($1,200) and Joe ($750) are also liabilities because the bank owes this money back to them. Therefore, the total liabilities are $3,000 + $1,200 + $750 = $4,950. Loans given out by the bank (to Robbie and Jackie) and investments are not counted as liabilities.

Amateur Bank Is Just Starting Out and Has Had the Following