1. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 5-3 Dishonored Checks and Electronic Banking

2. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 2 LESSON 5-3 DISHONORED CHECKS A check that a bank refuses to pay Happens when: The account the check was written from has insufficient funds (not enough money) Is illegal The check appears altered Is illegal The signature doesn’t match the signature card The amounts (words and numbers) don’t match The check is postdated The person who wrote the check stopped payment on the check Business loses the value of that check page 133

3. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 3 LESSON 5-3 RECORDING A DISHONORED CHECK ON A CHECK STUB 1.Write Dishonored check $105.00 on the line under the heading “Other.” page 129 12 3 2.Write the total of the dishonored check in the amount column. 3.Calculate and record the new subtotal on the Subtotal line.

4. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 4 LESSON 5-3 JOURNALIZING A DISHONORED CHECK page 130 1 4 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. Write the title of the account debited. Write the debit amount. 3.Write the title of the account credited. Write the amount credited. 4. Write the source document number in the Doc. No. column. 2 3 1. Write the date.

5. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 5 LESSON 5-3 JOURNALIZING AN ELECTRONIC FUNDS TRANSFER page 131 September 2. Paid cash on account to Kelson Enterprises, $350.00, using EFT. Memorandum No. 10. 2.Write the title of the account debited. Record the amount debited. 3.Write the title of the account credited. Record the amount credited. 4. Write the source document number in the Doc. No. column. 14 2 3 1. Write the date.

6. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 6 LESSON 5-3 JOURNALIZING A DEBIT CARD TRANSACTION page 132 September 5. Purchased supplies, $24.00, using debit card. Memorandum No. 12. 2.Write the title of the account debited. Record the amount debited. 3.Write the title of the account credited. Record the amount credited. 4.Write the source document number in the Doc. No. column. 14 2 3 1. Write the date.