1. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 5-1 Checking Accounts

2. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Activating Strategy Accounting in the Real World, page 117 Hard Rock Café 1At Hard Rock Café, customers use cash or credit cards to make purchases. What control problems may occur when employees accept cash for a sale? 1What can Hard Rock do, in its own cafes, to help support its “Save the Planet” motto? 2 LESSON 5-1

3. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Notes Checking account A bank account from which payments can be ordered by a depositor Check Business form ordering a bank to pay cash from a bank account Deposit slip Form used whenever checks or cash are deposited into a checking account 3 LESSON 5-1

4. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 4 LESSON 5-1 DEPOSITING CASH page 119

5. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 5 LESSON 5-1 DEPOSIT RECORDED ON A CHECK STUB page 119

6. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Notes continued Endorsement Transferring ownership of a check Stamp or a signature 1Blank endorsement – signature 2Special endorsement (full) – indicates a new owner Pay to the order of, signature 3Restrictive endorsement – restricts further transfer of ownership For deposit only, name of business or acct number, signature 6 LESSON 5-1

7. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 7 LESSON 5-1 ENDORSEMENTS page 120 Blank Endorsement Special Endorsement Restrictive Endorsement

8. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Notes continued Check stub Needs to be filled out for anything done to a checking account Postdated check Check with a future date on it Most banks will not accept postdated checks Void check Should be done if an error is made on a check Record in journal and on check stub 8 LESSON 5-1

9. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 9 LESSON 5-1 5.Write the amount of the check. 2.Write the date of the check. 3.Write to whom the check is to be paid. 4.Record the purpose of the check. 1.Write the amount of the check. 6.Calculate the new checking account balance. COMPLETED CHECK STUB page 121 1 2 3 4 5 6

10. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 10 LESSON 5-1 COMPLETED CHECK 7.Write the date. page 121 1112 10 98 7 10.Write the amount in words. 8.Write to whom the check is to be paid. 9.Write the amount in figures. 11.Write the purpose of the check. 12.Sign the check.

11. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 11 LESSON 5-1 1.Record the date in the Date column. 2.Write the word VOID in the Account Title column 3.Write the check number in the Doc. No. column. 4.Place a check mark in the Post. Ref. column. 5.Place a dash in both the Debit and Credit columns. RECORDING A VOIDED CHECK page 122 1 2 3 4 5

12. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 12 LESSON 5-1 TERMS REVIEW code of conduct checking account endorsement blank endorsement special endorsement restrictive endorsement postdated check page 123