accounting questions

[grandmabee]

working on the journal entries for the atm machine. we write a check to the bank for 10,000 for cash

debit petty cash credit bank-checking

put money in the atm machine. credit petty cash and debit atm machine account.

so when the bank sends me a statement showing how much money was withdrawn fromt he atm machine do I have to do anything with that. Can I just treat this like a petty cash account and when the atm machine is low I just replenish the atm account.

the bank pays me separte for my commissions on having the atm machine in business.

thanks

[rfassett]

Assuming the bank puts funds back into your checking account to reimburse you for the money withdrawn from the ATM, you are correct. You would credit the ATM account when the bank reimburses you (and debit checking) and you would debit ATM and credit checking when you replenish the ATM. The "ATM Machine" account is more akin to an "other current assets" account than a "cash" account because of your agreement with the bank.

[grandmabee]

Assuming the bank puts funds back into your checking account to reimburse you for the money withdrawn from the ATM, you are correct. You would credit the ATM account when the bank reimburses you (and debit checking) and you would debit ATM and credit checking when you replenish the ATM. The "ATM Machine" account is more akin to an "other current assets" account than a "cash" account because of your agreement with the bank.

thanks, I kept thinking about this last night and realized I had to debit back the checking account to return the money.