CHECKING ACCOUNTS

1. CHECKING ACCOUNTS

2. Parts of a Check

3. PARTS OF A CHECK $A Date $B Check Number $C Signature of Drawer $D Magnetic Ink Characters—Check Number $E Magnetic Ink Characters—Person’s Account Number $F Magnetic Ink Characters—Routing Number $G Amount of Check in Figures $H Payee $I Drawer’s Name, Address, and Phone Number A I A B A G H C F D E

4. PARTS OF A CHECK $A Date $B Check Number $H Write the name of the person/company to whom you are giving the check. Be careful to write legibly and spell correctly. $G Begin close to the dollar sign and print the amount of the check in figures very legibly. $ On the line below the Payee, start at the beginning and write the amount in words. Capitalize the first letter of the first word. Use the word and to represent the decimal point. Write the cents as a fraction. Do not write the words “dollars”. $C Sign your name A I A B A G H C F D E

5. Record the Balance Brought Forward • Enter each check that is written at the time it is written! • Enter the deposits • With each entry calculate the new balance No. Date Description Payment Deposit Balance 12/01 Balance Fwd. 500.00 235 12/15 Lowes 93.00 407.00 12/20 Deposit 400.00 807.00 12/21 ATM 20.00 787.00

6. ENDORSEMENTS Blank Restrictive For deposit only Your Name Your Name Special Corrective Pay to the order of Susie Smith Your Name Wrong way John Stewart John Stuart Correct way

7. Bank Reconciliation Activity • Enter the checkbook balance • Enter the bank statement balance • Enter: Bank charges • Bank dishonored checks • Outstanding checks Balanced • Enter the outstanding deposits • Calculate to get the adjusted balances