1. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Chapter 5 Objectives 1.Identify terms related to using a checking account and a petty cash fund. 2.Identify concepts and practices related to using a checking account. 1 LESSON 5-1

2. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Chapter 5 Objectives 3.Prepare business papers related to using a checking account. 4.Reconcile bank statements 5.Journalize dishonored checks and electronic banking 6.Establish/replenish petty cash 2 LESSON 5-1

3. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 5-1 Checking Accounts

4. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 4 LESSON 5-1 DEPOSITING CASH page 119

5. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 5 LESSON 5-1 DEPOSIT RECORDED ON A CHECK STUB page 119

6. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 6 LESSON 5-1 ENDORSEMENTS page 120 Blank Endorsement Has the signature of the person on front of check. Transfers ownership. Can be cashed by HOLDER. Special Endorsement Indicates NEW owner. Also called endorsement in full or 3 rd party. Further transfers ownership of check. Restrictive Endorsement Restricts further transfer!!! Endorsement Transfers ownership

7. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 7 LESSON 5-1 5.Write the amount of the check. 2.Write the date of the check. 3.Write to whom the check is to be paid. 4.Record the purpose of the check. 1.Write the amount of the check. 6.Calculate the new checking account balance. COMPLETED CHECK STUB page 121 1 2 3 4 5 6

8. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 8 LESSON 5-1 COMPLETED CHECK 7.Write the date. page 121 1112 10 98 7 10.Write the amount in words. 8.Write to whom the check is to be paid. 9.Write the amount in figures. 11.Write the purpose of the check. 12.Sign the check.

9. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 9 LESSON 5-1 1.Record the date in the Date column. 2.Write the word VOID in the Account Title column 3.Write the check number in the Doc. No. column. 4.Place a check mark in the Post. Ref. column. 5.Place a dash in both the Debit and Credit columns. RECORDING A VOIDED CHECK page 122 1 2 3 4 5 POSTDATED Check—Check with FUTURE date. Noooooo!!!

10. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Accounting Terms Code of Conduct—A statement that guides the ethical behavior of a company and its employees. Similar to PWCS Code of Behavior given at start of year. 10 LESSON 5-1

11. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 11 LESSON 5-1 TERMS REVIEW code of conduct checking account endorsement blank endorsement special endorsement restrictive endorsement postdated check page 123

12. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Audit Your Understanding 1.I can list the three types of endorsements. 2.I can list the steps for preparing a check stub. 3.I can list the steps for preparing a check. 12 LESSON 5-1