JournaldrillBank service charges
A journal entry exercise from Journaldrill. Solve it with an account picker and debit and credit fields in your browser, and it is checked the moment you submit.
The task
Bayview Bike Repair receives its October bank statement. The bank deducted a $25 monthly account fee and a $15 fee for a stop-payment order. Neither charge has been recorded in the company's books. Record the charges.
What this exercise teaches
The bank has already reduced the account, so Cash is credited for the $25 + $15 = $40 total. Fees charged by the bank are an operating expense, so Bank Service Charge Expense is debited. Nothing is owed to the bank, so Accounts Payable is not involved, and a fee is not interest.
A hint if you get stuck
The bank has already taken the money out of the account; the books need to catch up with an expense and a lower cash balance.
Try it now, free, no account needed
The first 15 tasks on Journaldrill are free. Open it on the practice page, solve it, and get instant feedback with a hint. A free account adds the worked solution; Pro adds timed mode and the certificate.
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