1. LESSON 5-1 Checking Accounts
7/22/2018
LESSON 5-1
Checking Accounts
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2. Opening a checking account
A business form ordering a bank to pay cash from a bank account is known as a check.
A bank account from which payments can be ordered by a depositor is called a checking account.
Opening a checking account
Signature card
Deposit slip

3. DEPOSITING CASH
page 119
A bank form which lists the checks, currency, and coins an account holder is adding to the bank account is called a deposit slip.
LESSON 5-1

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

5. COMPLETED CHECK STUB 1 2 3 4 5 6 1. Write the amount of the check.
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. COMPLETED CHECK 7 8 9 10 11 12 7. Write the date.
page 121 7 8 9 10 11 12
7. Write the date.
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. RECORDING A VOIDED CHECK
LESSON 5-1
7/22/2018
RECORDING A VOIDED CHECK
page 122 2 4 1 3 5
1. Record the date.
2. Write the word VOID in the Account Title column
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 5-1
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8. Three types of commonly used endorsements
A signature or stamp on the back of a check transferring ownership is called an endorsement.
Three types of commonly used endorsements
Blank endorsement
Special endorsement
Restrictive endorsement

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

10. LESSON 5-2 Bank Reconciliation
7/22/2018
LESSON 5-2
Bank Reconciliation
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11. Bank Statement
A report of deposits, withdrawals, and bank balances sent to a depositor by a bank is called a bank statement.
A check which has been paid by the bank is called a canceled check.

12. BANK STATEMENT RECONCILIATION
LESSON 5-2
7/22/2018
BANK STATEMENT RECONCILIATION
page 125
1. Date 1
2. Check Stub Balance 2 5
3. Service Charge
4. Adjusted Check Stub Balance 6 3 7
5. Bank Statement Balance
6. Outstanding Deposits 8 4 9
7. Subtotal
8. Outstanding Checks 10
9. Adjusted Bank Balance
10. Compare Adjusted Balances
LESSON 5-2
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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. JOURNALIZING A BANK SERVICE CHARGE
page 127
August 31. Received bank statement showing August bank service charge, $8.00. Memorandum No. 3. 4 1 2 3
1. Date. Write the date.
2. Debit. Write the title of the account to be debited. Record the amount debited.
3. Credit. Record the amount credited.
4. Source document. Write the source document number.
LESSON 5-2

15. LESSON 5-3 Dishonored Checks and Electronic Banking
7/22/2018
LESSON 5-3
Dishonored Checks and Electronic Banking

16. Recording a Dishonored Check on a Check Stub
A check that a bank refuses to pay is called a dishonored check.
A check dishonored by the bank because of insufficient funds in the account of the maker of the check is called a non-sufficient funds check.
A non-sufficient funds check is also known as an NSF check.

17. RECORDING A DISHONORED CHECK ON A CHECK STUB
page 129
1. Write Dishonored check $ on the line under the heading “Other.”
2. Write the total of the dishonored check in the amount column. 1 2 3
3. Calculate and record the new subtotal on the Subtotal line.
LESSON 5-3

18. 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, $ Memorandum No. 55. 1 4 2 3
1. Date. Write the date.
2. Debit. Write the title of the account to be debited.
3. Credit. Write the amount credited.
4. Source document. Write the source document number.
LESSON 5-3

19. Journalizing an Electronic Funds Transfer
A computerized cash payments system that transfers funds without the use of checks, currency, or other paper documents is called electronic funds transfer (EFT).

20. JOURNALIZING AN ELECTRONIC FUNDS TRANSFER
page 131
September 2. Paid cash on account to Kelson Enterprises, $350.00, using EFT. Memorandum No. 10. 4 2 1 3
1. Date. Write the date.
2. Debit. Write the title of the account to be debited. Record the amount debited.
3. Credit. Record the amount credited.
4. Source document. Write the source document number.
LESSON 5-3

21. Journalizing a Debit Card Transaction
A bank card that automatically deducts the amount of a purchase from the checking account of the cardholder is called a debit card.

22. JOURNALIZING A DEBIT CARD TRANSACTION
page 132
September 5. Purchased supplies, $24.00, using debit card. Memorandum No. 12. 4 2 1 3
1. Date. Write the date.
2. Debit. Write the title of the account to be debited. Record the amount debited.
3. Credit. Record the amount credited.
4. Source document. Write the source document number.
LESSON 5-3

23. LESSON 5-4
7/22/2018
LESSON 5-4
Petty Cash
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24. Establishing a Petty Cash Fund
An amount of cash kept on hand and used for making small payments is called petty cash.

25. MAKING PAYMENTS FROM A PETTY CASH FUND WITH A PETTY CASH SLIP
page 135
A form showing proof of a petty cash payment is called a petty cash slip.
LESSON 5-4

26. Petty Cash Report
A petty cash on hand amount that is less than a recorded amount is called cash short.
A petty cash on hand amount that is more than a recorded amount is called cash over.
The custodian prepares a petty cash report when the petty cash fund is to be replenished.

27. Petty Cash Report 1 2 3 4 8 5 7 6 Date and Custodian Name Fund Total
Payments by General Ledger Account 3
Total Payments 4
Recorded Amount on Hand 5
Amount to
Replenish 8 6
Actual Cash on Hand
Subtract the actual cash on hand from the recorded amount on hand. 7

28. ESTABLISHING A PETTY CASH FUND
page 134
August 19. Paid cash to establish a petty cash fund, $ Check No. 8. 4 1 2 3
1. Date. Write the date.
2. Debit. Write the title of the account to be debited. Record the amount debited.
3. Credit. Record the amount credited.
4. Source document. Write the source document number.
LESSON 5-4

29. REPLENISHING PETTY CASH
page 136
August 31. Paid cash to replenish the petty cash fund, $30.00: miscellaneous expense, $20.00; advertising, $ Check No. 12. 4 1 2 3
1. Date. Write the date.
2. Debit. Write the title of the first account to be debited. Write the amount to be debited. Write the title of the second account to be debited. Record the amount to be debited.
3. Credit. Record the amount credited.
4. Source document. Write the source document number.
LESSON 5-4