1. Chapter 5
Cash Control Systems

2. 5.1 Checking accounts
Pages
Checking account– a bank account from which payments can be ordered by a depositor
Endorsement– a signature or stamp on the back of a check transferring ownership
Blank endorsement– only consist of endorser’s signature
Special endorsement– an endorsement indicating a new owner of the check
Restrictive endorsement – an endorsement restricting further transfer of a check’s ownership

3. DEPOSITING CASH
page 119
LESSON 5-1

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

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

6. Preparing a check Write the date (month, day, year)
Page 121
Write the date (month, day, year)
Postdated check – a check with a future date on it
Write to whom the check is to be paid
Write the amount in figures following $
Write the amount in words before the word Dollars
Write the purpose of the check following the word For
Sign the check

7. Preparing a check stub Write the amount of the check
Page 121
Write the amount of the check
Write the date (month, day, year)
Write to whom the check is to be paid
Record the purpose of the check
Write the amount of the check following amt this check
Calculate the new checking account balance

8. RECORDING A VOIDED CHECK
LESSON 5-1
2/16/2019
RECORDING A VOIDED CHECK
page 122 1 3 5 2 4
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.
LESSON 5-1
GREEN

9. 5.2 Bank Reconciliation
Pages
Bank statement– a report with deposits, withdrawals, and bank balances sent to a depositor by a bank
Code of conduct – a statement that guides the ethical behavior of a company

10. BANK STATEMENT
page 124
LESSON 5-2

11. 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

12. 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. 1 2
3. Calculate and record the new subtotal on the Subtotal line. 3
LESSON 5-2

13. JOURNALIZING A BANK SERVICE CHARGE
page 127
August 31. Received bank statement showing August bank service charge, $8.00. Memorandum No. 3. 2 1 4 3
1. Write the date.
2. Write the title of the account debited. Record the debit amount.
3. Write the title of the account credited. Record the credit amount.
4. Write the source document number in the Doc. No. column.
LESSON 5-2

14. Recap: 1. What account is a bank service charge journalized?
2. What does it mean if a deposit or check is OUTSTANDING?
3. Are outstanding checks added or subtracted from the adjusted bank balance side of the bank reconciliation?

15. 5.3 Dishonored Checks & Electronic Banking
Pages
Dishonored check– a check that a bank refuses to pay
Electronic funds transfer (EFT) – a computerized cash payments system that transfers funds without the use of checks, currency, or other paper documents
Debit card – a bank card that automatically deducts the amount of a purchase from the checking account

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

17. 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, $ Memorandum No. 55. 2 4 1 3
1. Write the date.
2. Write the title of the account debited. Write the debit amount.
3. Write the title of the account credited. Write the amount credited.
4. Write the source document number in the Doc. No. column.
LESSON 5-3

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

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

20. 5.4 Petty Cash
Pages
Petty cash – an amount of cash kept on hand and used for making small payments
Petty cash slip – A form showing proof of a petty cash payment

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

22. MAKING PAYMENTS FROM A PETTY CASH FUND WITH A PETTY CASH SLIP
page 135
LESSON 5-4

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