Corbin Company was charged $25 for a check printing service fee associated with its checking account.Which journal entry is required?
A)Debit Miscellaneous Expense for $25 and credit Accounts Payable for $25.
B)Debit Miscellaneous Expense for $25 and credit Accounts Receivable for $25.
C)Debit Miscellaneous Expense for $25 and credit Cash for $25.
D)No journal entry is required.

Question

Quizplus · Accepted Answer

The $25 check printing service fee was paid in cash, so the journal entry should include a debit to Miscellaneous Expense (an expense account) for $25 and a credit to Cash (an asset account) for $25. No accounts payable or accounts receivable are involved in this transaction. Therefore, Choice A and B are incorrect. Choice D is incorrect because a transaction did occur and a journal entry is required to record it.

Corbin Company Was Charged $25 for a Check Printing Service