Question

how would you journalize a bank service charge?
debit cash and credit bank expense
debit cash and credit service charge
debit miscellaneous expense and credit cash
debit accounts payable and credit cash
question 10
choose the answer.
a record of all activity in a bank account is called a:
bank invoice
receipt
deposit slip
bank statement

Explanation:

• First question: Bank service charge is an expense. When recording it, we debit an expense account (Miscellaneous Expense in this case as it's a general - purpose expense account for small, non - categorized expenses) and credit Cash because cash is decreasing.
• Second question: A bank statement is a record of all the transactions (deposits, withdrawals, service charges etc.) that have occurred in a bank account over a specific period. A bank invoice is not a standard term for this record. A receipt is for a single transaction. A deposit slip is used to deposit money into an account, not to record all account activities.

Answer:

• First question: debit Miscellaneous Expense and credit Cash
• Second question: bank statement