LESSON 5-1

1. LESSON 5-1 Checking Accounts

2. DEPOSITING CASH page 119 LESSON 5-1

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

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

5. COMPLETED CHECK STUB 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

6. 7. Write the date. COMPLETED CHECK page 121 7 8 9 10 11 12 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

7. 5 RECORDING A VOIDED CHECK page 122 1 3 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

8. TERMS REVIEW page 123 • code of conduct – a statement that guides the ethical behavior of a company and its employees • 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 – an endorsement consisting only of the endorser’s signature LESSON 5-1

9. TERMS REVIEW page 123 • special endorsement – an endorsement indicating a new owner of a check • restrictive endorsement – an endorsement restricting further transfer of a check’s ownership • postdated check – a check with a future date on it LESSON 5-1

10. LESSON 5-2 Bank Reconciliation

11. BANK STATEMENT page 124 LESSON 5-2

12. 10 BANK STATEMENT RECONCILIATION page 125 1. Date 1 2. Check Stub Balance 2 5 3. Service Charge 6 4. Adjusted Check Stub Balance 3 7 5. Bank Statement Balance 6. Outstanding Deposits 8 4 9 7. Subtotal 8. Outstanding Checks 9. Adjusted Bank Balance 10. Compare Adjusted Balances LESSON 5-2

13. 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

14. 2 3 JOURNALIZING A BANK SERVICE CHARGE page 127 August 31. Received bank statement showing August bank service charge, $8.00. Memorandum No. 3. 1 4 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

15. TERM REVIEW page 128 • bank statement – a report of deposits, withdrawals, and bank balances sent to a depositor by a bank LESSON 5-2

16. LESSON 5-3 Dishonored Checks and Electronic Banking

17. 1. Write Dishonoredcheck $105.00 on the line under the heading “Other.” RECORDING A DISHONORED CHECK ON A CHECK STUB page 129 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

18. 2 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. 4 1 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

19. 2 3 JOURNALIZING AN ELECTRONIC FUNDS TRANSFER page 131 September 2. Paid cash on account to Kelson Enterprises, $350.00, using EFT. Memorandum No. 10. 1 4 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. 2 3 JOURNALIZING A DEBIT CARD TRANSACTION page 132 September 5. Purchased supplies, $24.00, using debit card. Memorandum No. 12. 1 4 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

21. TERMS REVIEW page 133 • dishonored check – a check that a bank refuses to pay • electronic funds transfer – 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 the purchase from the checking account of the cardholder LESSON 5-3

22. LESSON 5-4 Petty Cash

23. 2 3 ESTABLISHING A PETTY CASH FUND page 134 August 19. Paid cash to establish a petty cash fund, $100.00. Check No. 8. 1 4 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

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

25. 2 3 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. 1 4 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

26. TERMS REVIEW page 138 • 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 LESSON 5-4