Bank Service Fee
Definition: Fee often charged by a bank each month for management of the bank
Scope:ModerateDifficulty:Easy
Fee often charged by a bank each month for management of the bank
Common Journal Entries
| Account | Debit | Credit |
|---|---|---|
| 1. Record monthly service fee | ||
| Bank charges $25 monthly account fee. | ||
| Bank Charges ExpenseExpense+ | $25 | |
| CashAsset− | $25 | |
| Expense recognized; discovered during bank reconciliation. | ||
| 2. Record wire transfer fee | ||
| Bank charges $15 for outgoing wire. | ||
| Bank Charges ExpenseExpense+ | $15 | |
| CashAsset− | $15 | |
| Fee expensed in the period incurred. | ||
T-AccountsA visual representation of a ledger account shaped like the letter T. Left side shows debits, right side shows credits.
Bank Charges ExpenseBank Charges ExpenseExpenseA cost incurred in the process of earning revenue. Normal balance: debit. Debits increase, credits decrease.
DebitLeft side of a journal entry. Increases assets and expenses. Decreases liabilities, equity, and revenue.
$25.00
$15.00
◀ Normal bal.
CreditRight side of a journal entry. Increases liabilities, equity, and revenue. Decreases assets and expenses.
$40.00
CashAsset account. Debits increase the balance. Credits decrease the balance.AssetA resource owned by the business. Normal balance: debit. Debits increase, credits decrease.
DebitLeft side of a journal entry. Increases assets and expenses. Decreases liabilities, equity, and revenue.
◀ Normal bal.
CreditRight side of a journal entry. Increases liabilities, equity, and revenue. Decreases assets and expenses.
$25.00
$15.00
$40.00
DurationShort-Term