LESSON 5-1 Checking Accounts 7/22/2018 LESSON 5-1 Checking Accounts Blue

Opening a checking account A business form ordering a bank to pay cash from a bank account is known as a check. A bank account from which payments can be ordered by a depositor is called a checking account. Opening a checking account Signature card Deposit slip

DEPOSITING CASH page 119 A bank form which lists the checks, currency, and coins an account holder is adding to the bank account is called a deposit slip. LESSON 5-1

DEPOSIT RECORDED ON A CHECK STUB page 119 LESSON 5-1

COMPLETED CHECK STUB 1 2 3 4 5 6 1. Write the amount of the check. page 121 1 1. Write the amount of the check. 2 3 2. Write the date of the check. 4 3. Write to whom the check is to be paid. 4. Record the purpose of the check. 5. Write the amount of the check. 6. Calculate the new checking account balance. 5 6 LESSON 5-1

COMPLETED CHECK 7 8 9 10 11 12 7. Write the date. page 121 7 8 9 10 11 12 7. Write the date. 10. Write the amount in words. 8. Write to whom the check is to be paid. 11. Write the purpose of the check. 12. Sign the check. 9. Write the amount in figures. LESSON 5-1

RECORDING A VOIDED CHECK LESSON 5-1 7/22/2018 RECORDING A VOIDED CHECK page 122 2 4 1 3 5 1. Record the date. 2. Write the word VOID in the Account Title column 3. Write the check number. 4. Place a check mark in the Post. Ref. column. 5. Place a dash in the Cash Credit column. LESSON 5-1 Blue

Three types of commonly used endorsements A signature or stamp on the back of a check transferring ownership is called an endorsement. Three types of commonly used endorsements Blank endorsement Special endorsement Restrictive endorsement

ENDORSEMENTS Blank Endorsement Special Endorsement page 120 Blank Endorsement Special Endorsement Restrictive Endorsement LESSON 5-1

LESSON 5-2 Bank Reconciliation 7/22/2018 LESSON 5-2 Bank Reconciliation Blue

Bank Statement A report of deposits, withdrawals, and bank balances sent to a depositor by a bank is called a bank statement. A check which has been paid by the bank is called a canceled check.

BANK STATEMENT RECONCILIATION LESSON 5-2 7/22/2018 BANK STATEMENT RECONCILIATION page 125 1. Date 1 2. Check Stub Balance 2 5 3. Service Charge 4. Adjusted Check Stub Balance 6 3 7 5. Bank Statement Balance 6. Outstanding Deposits 8 4 9 7. Subtotal 8. Outstanding Checks 10 9. Adjusted Bank Balance 10. Compare Adjusted Balances LESSON 5-2 Blue

RECORDING A BANK SERVICE CHARGE ON A CHECK STUB page 126 1. Write Service Charge $8.00 on the check stub under the heading “Other.” 2. Write the amount of the service charge in the amount column. 3. Calculate and record the new subtotal on the Subtotal line. 1 2 3 LESSON 5-2

JOURNALIZING A BANK SERVICE CHARGE page 127 August 31. Received bank statement showing August bank service charge, $8.00. Memorandum No. 3. 4 1 2 3 1. Date. Write the date. 2. Debit. Write the title of the account to be debited. Record the amount debited. 3. Credit. Record the amount credited. 4. Source document. Write the source document number. LESSON 5-2

LESSON 5-3 Dishonored Checks and Electronic Banking 7/22/2018 LESSON 5-3 Dishonored Checks and Electronic Banking

Recording a Dishonored Check on a Check Stub A check that a bank refuses to pay is called a dishonored check. A check dishonored by the bank because of insufficient funds in the account of the maker of the check is called a non-sufficient funds check. A non-sufficient funds check is also known as an NSF check.

RECORDING A DISHONORED CHECK ON A CHECK STUB page 129 1. Write Dishonored check $105.00 on the line under the heading “Other.” 2. Write the total of the dishonored check in the amount column. 1 2 3 3. Calculate and record the new subtotal on the Subtotal line. LESSON 5-3

JOURNALIZING A DISHONORED CHECK page 130 November 29. Received notice from the bank of a dishonored check from Campus Internet Café, $70.00, plus $35.00 fee; total, $105.00. Memorandum No. 55. 1 4 2 3 1. Date. Write the date. 2. Debit. Write the title of the account to be debited. 3. Credit. Write the amount credited. 4. Source document. Write the source document number. LESSON 5-3

Journalizing an Electronic Funds Transfer A computerized cash payments system that transfers funds without the use of checks, currency, or other paper documents is called electronic funds transfer (EFT).

JOURNALIZING AN ELECTRONIC FUNDS TRANSFER page 131 September 2. Paid cash on account to Kelson Enterprises, $350.00, using EFT. Memorandum No. 10. 4 2 1 3 1. Date. Write the date. 2. Debit. Write the title of the account to be debited. Record the amount debited. 3. Credit. Record the amount credited. 4. Source document. Write the source document number. LESSON 5-3

Journalizing a Debit Card Transaction A bank card that automatically deducts the amount of a purchase from the checking account of the cardholder is called a debit card.

JOURNALIZING A DEBIT CARD TRANSACTION page 132 September 5. Purchased supplies, $24.00, using debit card. Memorandum No. 12. 4 2 1 3 1. Date. Write the date. 2. Debit. Write the title of the account to be debited. Record the amount debited. 3. Credit. Record the amount credited. 4. Source document. Write the source document number. LESSON 5-3

LESSON 5-4 7/22/2018 LESSON 5-4 Petty Cash Blue

Establishing a Petty Cash Fund An amount of cash kept on hand and used for making small payments is called petty cash.

MAKING PAYMENTS FROM A PETTY CASH FUND WITH A PETTY CASH SLIP page 135 A form showing proof of a petty cash payment is called a petty cash slip. LESSON 5-4

Petty Cash Report A petty cash on hand amount that is less than a recorded amount is called cash short. A petty cash on hand amount that is more than a recorded amount is called cash over. The custodian prepares a petty cash report when the petty cash fund is to be replenished.

Petty Cash Report 1 2 3 4 8 5 7 6 Date and Custodian Name Fund Total Payments by General Ledger Account 3 Total Payments 4 Recorded Amount on Hand 5 Amount to Replenish 8 6 Actual Cash on Hand Subtract the actual cash on hand from the recorded amount on hand. 7

ESTABLISHING A PETTY CASH FUND page 134 August 19. Paid cash to establish a petty cash fund, $100.00. Check No. 8. 4 1 2 3 1. Date. Write the date. 2. Debit. Write the title of the account to be debited. Record the amount debited. 3. Credit. Record the amount credited. 4. Source document. Write the source document number. LESSON 5-4

REPLENISHING PETTY CASH page 136 August 31. Paid cash to replenish the petty cash fund, $30.00: miscellaneous expense, $20.00; advertising, $10.00. Check No. 12. 4 1 2 3 1. Date. Write the date. 2. Debit. Write the title of the first account to be debited. Write the amount to be debited. Write the title of the second account to be debited. Record the amount to be debited. 3. Credit. Record the amount credited. 4. Source document. Write the source document number. LESSON 5-4