Initially, $120 was in the checking account. $40 spent on a sweatshirt reduced it to $80. Depositing $300 in savings increased its balance to $300, while the checking remained at $80.
Transaction 1: Sweatshirt Purchase
1.Initial Checking Account Balance: $120
This is the starting balance in your checking account.
2. Sweatshirt Purchase:
Date: 2023-12-08
Entry: Sweatshirt purchase
Payment (-): $40
Updated Checking Account Balance: $120 - $40 = $80
Savings Account Balance:** Remains unchanged at $0
Transaction 2: Savings Deposit
1. Updated Checking Account Balance: $80
This balance is carried forward from the previous transaction.
2. Savings Deposit:
Date: 2023-12-08
Entry: Savings deposit
Deposit (+): $300
Updated Savings Account Balance: $0 + $300 = $300
Checking Account Balance: Remains unchanged at $80
These transactions reflect the movement of funds between your checking and savings accounts. You started with $120 in checking, spent $40 on a sweatshirt, reducing the checking account balance to $80. Then, you made a $300 deposit into your savings account, increasing the savings balance to $300 while the checking account balance remained at $80.