Chapter Review Cash Control Systems

Completed Check Stub and Check Lesson 5-1 Completed Check Stub and Check Always complete the check stub first before you write the check.

Recording a Bank Service Charge on a Check Stub Lesson 5-2 Recording a Bank Service Charge on a Check Stub 2 1 3 1. Write Service Charge 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.

Recording a Dishonored Check on a Check Stub Lesson 5-3 Recording a Dishonored Check on a Check Stub 1. Write Dishonored Check on the check stub under the heading Other. 2. Write the amount of the dishonored check plus the bank’s dishonored check fee in the amount column. 2 3. Calculate and record the new subtotal on the Subtotal line. 1 3

Journalizing a Dishonored Check Lesson 5-3 Journalizing a Dishonored Check August 29. Received notice from the bank of a dishonored check from Valley Landscaping, $185.00, plus $40.00 fee; total, $225.00. Memorandum No. 52. Accounts Receivable—Valley Landscaping 225.00 Cash 225.00

Bank Statement Reconciliation Lesson 5-2 Bank Statement Reconciliation Check Stub Balance 2 Date 1 Bank Statement Balance 5 Service Charge 3 6 Total Outstanding Deposits Subtotal 7 Total Outstanding Checks 8 Adjusted Bank Balance 9 Adjusted Check Stub Balance 4 Compare Adjusted Balances 10

Journalizing an Electronic Funds Transfer Lesson 5-3 Journalizing an Electronic Funds Transfer June 5. Paid cash on account to Murniak Enterprises, $380.00, using EFT. Memorandum No. 18. Accounts Payable—Murniak Enterprises 380.00 Cash

Establishing a Petty Cash Fund Lesson 5-4 Establishing a Petty Cash Fund Petty Cash 100.00 June 19. Paid cash to establish a petty cash fund, 100.00, C8 Cash 100.00

Petty Cash Report Date and Custodian Name Fund Total Lesson 5-4 Petty Cash Report Date and Custodian Name 1 Fund Total 2 Payments by General Ledger Account 3 Total Payments 4 Recorded Amount on Hand (100.00 minus 34.00) 5 6 Actual Cash on Hand (Money still left in the cash box.) Amount to Replenish 8 Subtract the actual cash on hand from the recorded amount on hand. (Should have had one dollar more. Cash box was short one dollar.) 7

Replenishing Petty Cash Lesson 5-4 Replenishing Petty Cash January 31. Paid cash to replenish the petty cash fund, $35.00: Miscellaneous Expense, $20.00; Advertising, $14.00, Cash Short and Over, $1.00. Check No. 11. Miscellaneous Expense 20.00 Date 1 Advertising Expense 14.00 Expense Amounts 3 Cash Short and Over 1.00 Account Titles Cash 35.00 Cash Short (If you are short, it is like an expense—so Cash Short and Over is debited) 4 2 Total Cash Payment 5

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