Corbin Company Was Charged $25 for a Check Printing Fee

question 121

Multiple Choice

Corbin Company was charged $25 for a check printing 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.

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Definitions:

Partnership Obligations

The duties, responsibilities, and liabilities assumed by partners in a business partnership, as dictated by law or agreement.

Vicarious Liability

Legal responsibility placed on one person for the acts of another.

Joint Liability

Shared liability. In partnership law, partners incur joint liability for partnership obligations and debts.

Fiduciary Duty

A legal obligation of one party to act solely in the best interest of another party, such as a trustee for a beneficiary.