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Accounting I

Accounting I. Chapter 6 – Cash Control Systems. T ERMS REVIEW. checking account endorsement blank endorsement special endorsement restrictive endorsement postdated check. Lesson 6-1, page 124. T ERMS REVIEW. Checking Account.

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Accounting I

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  1. Accounting I Chapter 6 – Cash Control Systems

  2. TERMS REVIEW checking account endorsement blank endorsement special endorsement restrictive endorsement postdated check Lesson 6-1, page 124

  3. TERMS REVIEW Checking Account A bank account from which payments can be ordered by a depositor. Lesson 6-1, page 126

  4. TERMS REVIEW Endorsement A signature or stamp on the back of a check transferring ownership. Lesson 6-1, page 127

  5. TERMS REVIEW Blank Endorsement An endorsement consisting only of the endorser’s signature. Lesson 6-1, page 127

  6. TERMS REVIEW Special Endorsement An endorsement indicating a new owner of a check. (a.k.a. 3rd party checks or endorsements in full) Lesson 6-1, page 127

  7. TERMS REVIEW Restrictive Endorsement. An endorsement restricting further transfer of a check’s ownership. Lesson 6-1, page 127

  8. TERMS REVIEW Postdated Check A check with a future date on it. (Not acceptable for of dating a check.) Lesson 6-1, page 128

  9. DEPOSITING CASH Lesson 6-1, page 126

  10. DEPOSIT RECORDED ON A CHECK STUB Lesson 6-1, page 126

  11. BLANK ENDORSEMENT, SPECIAL ENDORSEMENT, AND RESTRICTIVE ENDORSEMENT Blank Endorsement Special Endorsement Restrictive Endorsement Lesson 6-1, page 127

  12. COMPLETED CHECK STUB AND CHECK 1 2 7 3 4 8 9 10 11 12 5 6 Preparing checks Preparing check stubs 7. Write the date. 1. Write the amount of the check. 8. Write to whom the check is to be paid. 2. Write the date of the check. 3. Write to whom the check is to be paid. 9. Write the amount in figures. 10. Write the amount in words. 4. Record purpose of the check. 11. Write the purpose of the check. 5. Write the amount of the check. 6. Calculate the new account balance. Lesson 6-1, page 128-129 12. Sign the check.

  13. RECORDING A VOIDED CHECK 4 1 2 3 5 1. Record the date. 2. Write the word VOID in the account title. 3. Write the check number. 4. Place a check mark in the Post. Ref. column. 5. Place a dash in the Cash Credit column. Lesson 6-1, page 129

  14. Work Together & On Your Own – Page 130

  15. TERMS REVIEW bank statement Lesson 6-2, page 135

  16. TERMS REVIEW Bank Statement A report of deposits, withdrawals, and bank balances sent to a depositor by a bank. Lesson 6-2, page 131

  17. BANK STATEMENT Lesson 6-2, page 131

  18. 10 BANK STATEMENT RECONCILIATION 1. Date 1 2. Check Stub Balance 2 5 3. Service Charge 3 6 4. Adjusted Check Stub Balance 7 8 5. Bank Statement Balance 6. Outstanding Deposits 9 4 7. Subtotal 8. Outstanding Checks 9. Adjusted Bank Balance Lesson 6-2, page 132 10. Compare Adjusted Balances

  19. RECORDING A BANK SERVICE CHARGE ON A CHECK STUB 1. Write Service Charge. 2. Write the amount of the service charge. 3. Calculate and record the new subtotal. 2 1 3 Lesson 6-2, page 133

  20. JOURNALIZING A BANK SERVICE CHARGE 1 2 4 3 1. Write the date. 2. Debit Miscellaneous Expense. 3. Credit Cash. 4. Write the source document number. Lesson 6-2, page 134

  21. Work Together & On Your Own – Page 135

  22. TERMS REVIEW dishonored check electronic funds transfer debit card Lesson 6-3, page 140

  23. TERMS REVIEW Dishonored Check A check that a bank refuses to pay. Lesson 6-3, page 136

  24. TERMS REVIEW Electronic Funds Transfer (EFT) A computerized cash payments system that uses electronic impulses to transfer funds. Lesson 6-3, page 138

  25. TERMS REVIEW Debit Card A bank card that, when making purchases, automatically deducts the amount of the purchase from the checking account. Lesson 6-3, page 139

  26. RECORDING A DISHONORED CHECK ON A CHECK STUB 1. Write Dishonored Check $50.00. 2. Write the amount of the dishonored check. 3. Calculate and record the new subtotal. 2 1 3 Lesson 6-3, page 136

  27. Accounts Rec.—Learn N Play Cash JOURNALIZING A DISHONORED CHECK November 29. Received notice from the bank of a dishonored check from Learn N Play, $35.00, plus $15.00 fee; total, $50.00. Memorandum No. 55. 1. Which accounts are affected? Accounts Receivable—Learn N Play Cash Debit Normal Balance 50.00  2. How is each account classified? Accounts Receivable—Learn N Play is an asset account. Cash is an asset account. Debit Normal Balance 3. How is each classification changed? Assets are increased. Assets are decreased. 50.00  4. How is each amount entered in the accounts? Assets increase on the debit side. Assets decrease on the credit side. Lesson 6-3, page 137

  28. 2 JOURNALIZING A DISHONORED CHECK 4 3 1 1. Write the date. 2. Debit Accounts Receivable—Learn N Play. 3. Credit Cash. 4. Write the source document number. Lesson 6-3, page 137

  29. 2 JOURNALIZING AN ELECTRONIC FUNDS TRANSFER 4 3 1 1. Write the date. 2. Debit Accounts Payable—Kelson Enterprises. 3. Credit Cash. 4. Write the source document number. Lesson 6-3, page 138

  30. 2 JOURNALIZING A DEBIT CARD TRANSACTION 4 3 1 1. Write the date. 2. Debit Supplies. 3. Credit Cash. 4. Write the source document number. Lesson 6-3, page 139

  31. Work Together & On Your Own – Page 140

  32. TERMS REVIEW petty cash petty cash slip Lesson 6-4, page 144

  33. TERMS REVIEW Petty Cash An amount of cash kept on hand and used for making small payments. Lesson 6-4, page 141

  34. TERMS REVIEW Petty Cash Slip A form showing proof of a petty cash payment. Lesson 6-4, page 142

  35. Petty Cash Cash ESTABLISHING A PETTY CASH FUND August 17. Paid cash to establish a petty cash fund, $200.00. Check No. 8. 1. Which accounts are affected? Petty Cash Cash Debit Normal Balance 200.00  2. How is each account classified? Petty Cash is an asset account. Cash is an asset account. Debit Normal Balance 3. How is each classification changed? Assets are increased. Assets are decreased. 200.00  4. How is each amount entered in the accounts? Assets increase on the debit side. Assets decrease on the credit side. Lesson 6-4, page 141

  36. 2 ESTABLISHING A PETTY CASH FUND 4 3 1 1. Write the date. 2. Debit Petty Cash. 3. Credit Cash. 4. Write the source document number. Lesson 6-4, page 141

  37. MAKING PAYMENTS FROM A PETTY CASH FUND WITH A PETTY CASH SLIP Lesson 6-4, page 142

  38. 2 REPLENISHING PETTY CASH 4 3 1 1. Write the date. 2. Debit Miscellaneous Expense and Advertising Expense. 3. Credit Cash. 4. Write the source document number. Lesson 6-4, page 143

  39. Work Together & On Your Own – Page 144

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