Transcript Lesson 5-1
Checking Accounts-A bank account from which payments can be ordered by a depositor - must provide a signature on a signature card for the bank records Check- a business form ordering a bank to pay cash from a bank account Deposit slip – prepared each time cash or checks are placed in a bank account, recorded on a check stub Blank Endorsement – only endorser’s signature If lost or stolen, can be cashed by anyone Should be used only at bank Special/Full Endorsement – an endorsement indicating a new owner of a check- (Pay to the order of) Restrictive Endorsement – restricting further transfer of a check’s ownership Limit’s use of the check (for deposit only) 1 2 1. Write the amount of the check. 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. 5 6 6. Calculate the new checking account balance. 7 8 9 10 11 7. Write the date. 8. Write to whom the check is to be paid. 9. Write the amount in figures. 12 10. Write the amount in words. 11. Write the purpose of the check. 12. Sign the check. 1 3 2 1. 2. 3. 4. 5. 4 Record the date in the Date column. Write the word VOID in the Account Title column Write the check number in the Doc. No. column. Place a check mark in the Post. Ref. column. Place a dash in both the Debit and Credit columns. 5 Text Book Work Book Work Together Page 123 Page 93 On Your Own Page 123 Page 94 LESSON 5-1 8 Endorsing and Writing Checks OYO 5-1 Textbook Workbook Page 123 Page 94 LESSON 5-2 9 Reconciling a bank statement and recording a bank service charge. LESSON 5-2 10 Bank Reconciliation – verifying that information on a bank statement and a checkbook are in agreement **This is important to proving Cash** Bank Statement – A report of deposits, withdrawals and bank balances sent to a depositor by a bank. Canceled Check – a check that was processed by the bank LESSON 5-2 13 Service Charge – bank fee, usually NOT recorded in business records prior to receiving statement Outstanding deposits – deposits recorded but do not appear on a bank statement Outstanding Checks – checks written but do not appear on a bank statement LESSON 5-2 14 1. Date 2. Check Stub Balance 3. Service Charge 4. Adjusted Check Stub Balance 3 5. Bank Statement Balance 6. Outstanding Deposits 7. Subtotal 8. Outstanding Checks 9. Adjusted Bank Balance 10. Compare Adjusted Balances 1 2 5 6 7 4 8 9 10 1 2 3 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. August 31. Received bank statement showing August bank service charge, $8.00. Memorandum No. 3. 2 1 4 3 1. 2. 3. 4. Write the date. Write the title of the account debited. Record the debit amount. Write the title of the account credited. Record the credit amount. Write the source document number in the Doc. No. column. LESSON 5-2 17 Text Book Work Book Class work - WT Page 128 Page 95 Homework - OYO Page 128 Page 96 LESSON 5-2 18 Dishonored Check – a check that a bank refuses to pay. The bank charges the business a fee for this. Occurs when: 1. a person who wrote the check has insufficient funds in their account 2. The check appears to be altered 3. Signature on check does not match one on file at bank 4. Check is postdated 5. The person who wrote the check has stopped payment on the check Electronic Banking page 129 1 2 3 22 LESSON 5-3 1. Write Dishonored check $105.00 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. 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. 2 4 1 3 1. 2. 3. 4. Write the date. Write the title of the account debited. Write the debit amount. Write the title of the account credited. Write the amount credited. Write the source document number in the Doc. No. column. 23 LESSON 5-3 EFT – Electronic funds transfer – a computerized cash payments system that transfers funds without the use of checks, currency or other paper documents, Source Document is a Memorandum Debit Card – A bank card that automatically deducts the amount of a purchase from a checking account, Source Document is a Memorandum LESSON 5-3 24 page 131 September 2. Paid cash on account to Kelson Enterprises, $350.00, using EFT. Memorandum No. 10. 2 1 4 3 1. 2. 3. 4. Write the date. Write the title of the account debited. Record the amount debited. Write the title of the account credited. Record the amount credited. Write the source document number in the Doc. No. column. 25 LESSON 5-3 page 132 September 5. Purchased supplies, $24.00, using debit card. Memorandum No. 12. 2 1 4 3 1. 2. 3. 4. Write the date. Write the title of the account debited. Record the amount debited. Write the title of the account credited. Record the amount credited. Write the source document number in the Doc. No. column. 26 LESSON 5-3 page 133 27 dishonored check electronic funds transfer debit card LESSON 5-3 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 August 19. Paid cash to establish a petty cash fund, $100.00. Check No. 8. 2 1 4 3 1. 2. 3. 4. Write the date. Write the title of the account debited. Record the amount debited. Write the title of the account credited. Record the amount credited. Write the source document number in the Doc. No. column. August 31. Paid cash to replenish the petty cash fund, $30.00: miscellaneous expense, $20.00; advertising, $10.00. 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 32 page 138 petty cash petty cash slip LESSON 5-4 33