Exhibit 19-1

-Given the hypothetical data in Exhibit 19-1, what is the balance on current account?

Question

Exhibit 19-1
 
-Given the hypothetical data in Exhibit 19-1, what is the balance on current account?

Quizplus · Accepted Answer

The current account balance is calculated by adding up all credits and subtracting all debits. 
In this case, the credits are $2,000 (deposit) and $400 (interest), for a total of $2,400. 
The debits are $2,500 (check written), for a final balance of -$100 (which represents an overdrawn account).
Therefore, the correct answer is E, which represents a balance of -$2,500.

Exhibit 19-1 -Given the Hypothetical Data in Exhibit 19-1, What Is the 19-1