1. Chapter 6 – Cash Control Systems
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. Lesson 6-1
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
Lesson 6-1, page 127

12. COMPLETED CHECK STUB AND CHECK1 2 7 3 4 8 9 10 11 12 5 6
Preparing check stubs
Preparing checks
1. Write the amount of the check.
7. Write the date.
2. Write the date of the check.
8. Write to whom the check is to be paid.
3. Write to whom the check is to be paid.
9. Write the amount in figures.
4. Record purpose of the check.
10. Write the amount in words.
5. Write the amount of the check.
11. Write the purpose of the check.
6. Calculate the new account balance.
12. Sign the check.
Lesson 6-1, page

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. 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 10
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 CHARGE1 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. 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, $ Memorandum No. 55.
Cash
Accounts Rec.—Learn N Play
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. JOURNALIZING A DISHONORED CHECK4 3 1 2
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. JOURNALIZING AN ELECTRONIC FUNDS TRANSFER4 3 1 2
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. JOURNALIZING A DEBIT CARD TRANSACTION4 3 1 2
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. ESTABLISHING A PETTY CASH FUND
Lesson 6-1
ESTABLISHING A PETTY CASH FUND
August 17. Paid cash to establish a petty cash fund, $ Check No. 8.
Cash
Petty Cash
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. ESTABLISHING A PETTY CASH FUND4 3 1 2
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. REPLENISHING PETTY CASH4 3 2 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