Question

"You recently opened your checking account with ReallyBigBank on August 1 using $100.00. Complete the checkbook register using the following transactions then explain how you completed the first four transactions. August 1 – Opened the checking account with $100.00 August 2 – Purchased groceries from Grocer’s Haven for $43.82 plus 4% tax. (Check 101) August 2 – Paid $8.00 for parking using your debit card. August 4 – Deposited paycheck from work. ($9.75/hr for 40 hours) August 6 – Paid HydroPower $35.11. (Check 102) August 6 – Bought 3 pairs of pants at $29.99 each with a 10% coupon and 5% sales tax from Bargains-R-Us. (Check 103) August 7 – Bought a bike for $180.00, helmet for $14.95, and gloves for $8.95 from Wheels-2-Go. Used a 15% off coupon and there was 4% sales tax. (Check 104) August 11 – Deposited paycheck from work less $100.00 ($9.75/hr for 40 hours) August 11 – Opened a savings account with $100.00 transferred from the checking account. (Note: This is an additional $100.00, not the $100.00 you just took out of your paycheck) August 12 – Ate lunch at Hamburger Mayvn for $5.65 plus 5% tax. Used your debit card to pay for it. A) Explanation of transactions not provided. B) Explanation of transactions provided. C) The explanation is required for only the first four transactions. D) The explanation is required for all transactions.

Answer 1

In the above solution, four main transactions have been illustrated. An initial account opening, two expenditures and a deposit of wage. Every transaction involves either adding money to the balance (through deposits) or subtracting money from the balance (with withdrawals or debits).

Step-by-step explanation:

The task here involves recording and calculating transactions in your checking account register.

1. August 1: you opened your account with $100, so you write $100 in the initial balance column.
2. August 2: You write $43.82 in the withdrawal/debit column and subtract the 4% tax from this to determine the final amount. This reduces your balance to $55.18.
3. August 2: An additional unrelated expenditure of $8, marked in the withdrawal/debit section. Your balance is now $47.18.
4. August 4: Here you deposited your paycheck, so this will be added to the total balance. It's $390 ($9.75 x 40 hours), making your new total $437.18.

The subsequent transactions follow the same pattern - adding credits, and subtracting debits/taxes.

Learn more about Checking Account Transactions