Prepared by Johnny Howard © 2015 South-Western, a part of Cengage Learning

9–2 © 2015 South-Western, a part of Cengage Learning

9–3 © 2015 South-Western, a part of Cengage Learning Using Deposit Slips and Bank Checks Bank check is a written order directing the bank to pay a certain sum to a designated party, called the payee. Funds that are transmitted electronically, primarily via computers, are called electronic fund transfers (EFTs). Automatic teller machine (ATM) T E R M S 1

9–4 © 2015 South-Western, a part of Cengage Learning Figure 9.1Deposit Slip

9–5 © 2015 South-Western, a part of Cengage Learning Figure 9.2Check with Check Stub on Left

9–6 © 2015 South-Western, a part of Cengage Learning Figure 9.3Check with Check Stub on Top

9–7 © 2015 South-Western, a part of Cengage Learning Using Checkbooks and Check Registers A bank checkbook provides check stubs or a special page on which to record deposits, withdrawals, check numbers, dates, check amounts, other additions and subtractions, and the account balance. Small businesses and many individuals use a check register that provides a place to record information about each bank transaction. T E R M S 2

9–8 © 2015 South-Western, a part of Cengage Learning Figure 9.4Check Register

9–9 © 2015 South-Western, a part of Cengage Learning Reconciling Bank Statements The bank statement shows an opening balance; deposits and credits, including EFTs; checks paid; withdrawals, including EFTs; service charges; general information about the account; and the balance at the end of the period. An outstanding check is one that has been written but hasn’t yet cleared the bank. A bank charge is a fee for services performed by the bank. A credit is a deposit or addition to a bank account. An outstanding deposit is a credit that hasn’t yet been recorded by the bank. T E R M S 2

9–10 © 2015 South-Western, a part of Cengage Learning Figure 9.5Bank Statement

9–11 © 2015 South-Western, a part of Cengage Learning to Reconcile Bank Balances 1.Reconcile the checkbook (check register) balance. Start with the last balance as recorded in the checkbook. a.Add any bank statement credits, such as interest earned or EFT deposits not yet recorded in the checkbook. b.Subtract any charges or debits made by the bank, such as debit card charges including ATM withdrawals service charges, check printing charges, returned check charges, or EFT charges not yet recorded in the checkbook. This gives you your adjusted checkbook balance. 2

9–12 © 2015 South-Western, a part of Cengage Learning to Reconcile Bank Balances (cont’d) 2.Reconcile the bank balance. Start with the balance as presented on the statement. a.Add any deposits or other credits not yet recorded by the bank. b.Subtract all outstanding checks. This gives you your adjusted bank balance. 3.Be sure that the two adjusted balances agree. 1

9–13 © 2015 South-Western, a part of Cengage Learning Figure 9.6Reconciliation Form

9–14 © 2015 South-Western, a part of Cengage Learning Chapter Terms for Review adjusted bank balance adjusted checkbook balance automatic teller machine (ATM) bank charge bank statement check checkbook check register credit debit card deposit slip electronic fund transfer (EFT) outstanding check outstanding deposit payee POS—Point of Sale reconciliation of the bank balance

9–15 © 2015 South-Western, a part of Cengage Learning Assignment 9.1: Check Register and Check Stubs A In the following check register, fill in the cash balance resulting from each transaction.

9–16 © 2015 South-Western, a part of Cengage Learning Assignment 9.1: Check Register and Check Stubs B Fill in the new balance (New Bal) and balance forward (BalFor’d) on each check stub, carrying each balance forward to the next stub.

9–17 © 2015 South-Western, a part of Cengage Learning Assignment 9.1: Check Register and Check Stubs C According to the check register of Pendrack Systems, the cash balance on July 1 was $1, During the month, deposits of $281.75, $681.10, and $ were made. Checks for $135.10, $307.53, $32.12, $212.40, $287.60, and $88.62 were recorded.

9–18 © 2015 South-Western, a part of Cengage Learning Assignment 9.1: Check Register and Check Stubs D The following problems show the deposits and checks that were recorded on a series of check stubs. In each problem, find the bank balance after each deposit or check.

9–19 © 2015 South-Western, a part of Cengage Learning Assignment 9.2: Check Register and Bank Statements A Solve the following problems.

9–20 © 2015 South-Western, a part of Cengage Learning Assignment 9.2: Check Register and Bank Statements A Solve the following problems. (cont’d)

9–21 © 2015 South-Western, a part of Cengage Learning Assignment 9.2: Check Register and Bank Statements B Solve the following problems.

9–22 © 2015 South-Western, a part of Cengage Learning Assignment 9.2: Check Register and Bank Statements B Solve the following problems. (cont’d)

9–23 © 2015 South-Western, a part of Cengage Learning Assignment 9.2: Check Register and Bank Statements B Solve the following problems. (cont’d)

9–24 © 2015 South-Western, a part of Cengage Learning Assignment 9.3: Bank Balance Reconciliation Statements A Using the data provided, prepare a bank reconciliation statement in each of the following problems.

9–25 © 2015 South-Western, a part of Cengage Learning Assignment 9.3: Bank Balance Reconciliation Statements A Using the data provided, prepare a bank reconciliation statement in each of the following problems. (cont’d)

9–26 © 2015 South-Western, a part of Cengage Learning Assignment 9.3: Bank Balance Reconciliation Statements A Using the data provided, prepare a bank reconciliation statement in each of the following problems. 2. (cont’d)

9–27 © 2015 South-Western, a part of Cengage Learning Assignment 9.3: Bank Balance Reconciliation Statements B Using the data provided, prepare a bank reconciliation statement in each of the following problems.

9–28 © 2015 South-Western, a part of Cengage Learning Assignment 9.3: Bank Balance Reconciliation Statements B Using the data provided, prepare a bank reconciliation statement in each of the following problems. 3. (cont’d)

9–29 © 2015 South-Western, a part of Cengage Learning Assignment 9.3: Bank Balance Reconciliation Statements B Using the data provided, prepare a bank reconciliation statement in each of the following problems.

9–30 © 2015 South-Western, a part of Cengage Learning Assignment 9.3: Bank Balance Reconciliation Statements B Using the data provided, prepare a bank reconciliation statement in each of the following problems. 4. (cont’d)