Checking Accounts Chapter 29

Today’s Schedule Review of Monday’s Quiz Homework Check We will review tomorrow Assignment of Homework Chapter 29 Quiz

Monday’s Quiz What are the three types of checking accounts? Regular, Interest-Bearing, Joint Writing checks for more money than you have in your account is known as Overdrawing List two of the 4 account services listed in the book. Debit Cards, Online Checking, Overdraft Protection, Stop Payment Extra Credit – The DLS Alumni Association was incorporated in what year? 1895

Homework Check

Homework Final Project Marketing Plan (5 points) Event brochures/literature/etc. Who will you invite and how? How will you market/publicize the event? How will you reach your targeted group? Due 11/16/06 – Thursday

Account Records Checking accounts allow you to keep financial records on transactions Keep track of income and expenses

Writing a Check Payee Drawer Drawee Party to whom the check is written and will cash the check Drawer Writer of the check and is paying the money Drawee Bank or Financial Institution where the drawer has the account

Writing a Check Check Register (Checkbook) When writing a check: Checkbook log where you keep track of all your checking transactions When writing a check: Record the Check # Record the Amount Record the Date Record the payee Purpose Line of the Check Put Account Numbers when paying bills

Sample Check Register

Depositing a Check Deposit Ticket or Deposit Slip Lists: Amount of Cash, Checks, & Total being deposited Requires an endorsement (signature) Always record deposits in the check register ATM Machines usually don’t require a deposit ticket

Bank Statements Bank’s record of all the transactions in your checking account Includes withdrawals, deposits, interest, and fees Includes canceled checks Checks you have written that have been cashed Proof that money has been paid to payees

Bank Reconciliation Reconcile – Bring into agreement or balance Process of seeing whether your records agree with the bank’s records for your account How do you reconcile? Balance your checkbook Search for and find errors

Balancing Your Checkbook Step 1: Check to see if the bank has processed all your checks and deposits Outstanding Checks – Checks that have been written but not cashed Subtract outstanding check amount from the balance on your bank statement

Balancing Your Checkbook Step 2: Add deposits that have been made but not recorded Remember service fees that a bank may have charged you Add interest if applicable After checking outstanding checks and deposits, check register should match bank statement If so, you have reconciled If not…

Find Errors Check your records to see if you’ve written the correct numbers Check additions and subtractions Check to see the correct balance was carried over on each page of the check register Recheck outstanding checks and deposits not yet processed Check the bank’s additions & subtractions Report them if you find them immediately

Quiz There are three parties named on a check. Name them. (3 points) ______ is a checkbook log where you keep track of all your checking transactions (3 points) There are two steps you can take to reconcile your check register & bank statement. What are they? (4 points) Who is De La Salle’s Executive Vice President? (1 point)