My Accounting brehs, a little help needed

[-InFeRnO-]

doing a case study where i've gotta journalize the transactions for the month based on diff source documents provided.. it's pretty basic shyt but i'm stuck on these withdrawals on the bank statement

it's a corporation so what could those $3000 withdrawals be? that's too big to be a petty cash fund, right?

 

[Sensitive Blake Griffin]

looks like they're just withdrawing money from those credit cards (since its a credit) to pay for subscriptions unless that means they're depositing revenue received from selling subscriptions

 

[ComputersPutin]

Its revenue from sales by customers using credit cards

Edit: Oh im focused on the circled items..you said the withdrawal

 

[VerbalIntercourse]

Could be a salary expense. Looks like something routine.

wages payable $3000
==========Cash $3000

 

[ComputersPutin]

lol shyt looks like Fraud. Nobody should be just withdrawing cash

 

[ComputersPutin]

I would guess...credit Cash and debit owners equity.

 

[VerbalIntercourse]

Could be a salary expense. Looks like something routine.

wages payable $3000
==========Cash $3000

I'm tripping. Why would a 3000 withdrawl (not a check) be a salary expense?

It's the same amount and it's seems to be routine. It could be petty cash.

 

[ComputersPutin]

I'm tripping. Why would a 3000 withdrawl (not a check) be a salary expense?

It's the same amount and it's seems to be routine. It could be petty cash.

Yea it either petty cash or a drawing which would effect owners equity.

 

[-InFeRnO-]

Yea it either petty cash or a drawing which would effect owners equity.

yeah the problem is it's a corporation, so technically there can't be any drawings from their bank account

i thought it might be petty cash but from what i gather 3k is way too much for a petty cash fund

i've listed it as a debit to cash dividends and a credit to cash as of now because idk what the fukk else it is.. that's probably wrong but yolo

 

[Cory MBA]

More information about this corporation is needed. Provide us with more details about the nature of the business.

 

[VerbalIntercourse]

yeah the problem is it's a corporation, so technically there can't be any drawings from their bank account

i thought it might be petty cash but from what i gather 3k is way too much for a petty cash fund

i've listed it as a debit to cash dividends and a credit to cash as of now because idk what the fukk else it is.. that's probably wrong but yolo

Bimonthly dividends? that doesn't sound right to me.

What kind of corporation is it?

 

[Cory MBA]

Bimonthly dividends? that doesn't sound right to me.

What kind of corporation is it?

I thought about that but they paid out as soon as they opened the account it seems. That's assuming this is the first bank statement. Even then, the time between payments doesn't appear to be clear enough to guess that it is bi-monthly....but its possible I guess.

More information is needed about the company. Even additional source documents would help.

 

[kevm3]

$3,000 withdrawals could be a lot of different things. There should be more information given. I can't really see it being petty cash due to its size and the fact that there were two withdrawals within in the same month.

 

[alybaba]

I'm assuming April is the first month that the business is in operation (since 40k was deposited on April 1)?

Can't be a dividend then - need to close the books, have a profit and then declare a dividend.

Petty cash is usually around $1,000 - really odd to have 7.5% of your entire cash in petty cash.

My guess is that it is probably some sort of expense that was paid in cash.

 

[CrimsonTider]

The debit side of this entry could literally be anything based on the info