Question

Can you solve these simple accouting questions?

A) Company ABC provides a $500 service to a customer. The customer uses a BECU debit card to pay for the service. BECU charges the company a 1% service fee.

What is one account that the company should debit?

What is another account that the company should debit?

What is the account that the company should credit?

B) Company DEF purchases $200 of equipment with cash.

What account should the company debit?

What account should the company credit?

C) In Company ABC's general ledger, the ending balance in the cash T-account is: $600

The company's accountant found the following reconciling items:

Deposits Outstanding = $110

Interest earned on bank account = $25

Service Fee = $40

What is the correct ending balance for cash after reconciliation?

D) On Company MM's bank statement, the ending balance in the cash T-account is: $400

The company's accountant found the following reconciling items:

Deposits Outstanding = $90

Checks Outstanding = $30

Interest earned on bank account = $25

Service Fee = $40

What is the correct ending balance for cash after reconciliation?

Answer 1

a. Bank a/c Dr 500

To Service income 500   

(Being service income reccceived

through BECU card)

Transaction charges a/c Dr 5

To bank 5

(Being transaction charge charged

by bank)

b) Equipement a/c Dr 200

To cash 200

(Being equipement purchased

by paying cash)