CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

LESSON 5-1LESSON 5-1

Checking Accounts

How businesses use cashCash deposited and recorded on a check stubBlank, special, and restrictive endorsementsCompleted check stub and checkRecording a voided check

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

Competency: Understanding Competency: Understanding Cash Control SystemsCash Control Systems

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LESSON 5-1

Objectives:75 Reconcile a bank statement76 Journalize banking transactions77 Maintain petty cash records78 Maintain a checking account79 Identify security considerations

related to cash control systems

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

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LESSON 5-1

DEPOSITING CASHDEPOSITING CASH page 119

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

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LESSON 5-1

DEPOSIT RECORDED ON DEPOSIT RECORDED ON A CHECK STUBA CHECK STUB page 119

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

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LESSON 5-1

ENDORSEMENTSENDORSEMENTS page 120

Blank Endorsement

Special Endorsement

Restrictive Endorsement

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

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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 STUBCOMPLETED CHECK STUB page 121

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CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

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LESSON 5-1

COMPLETED CHECKCOMPLETED CHECK

7. Write the date.

page 121

1111 1212

1010

9988

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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.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

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LESSON 5-1

1. Record the date.2. Write the word VOID in the Account Title column3. Write the check number.4. Place a check mark in the Post. Ref. column.5. Place a dash in the Cash Credit column.

RECORDING A VOIDED CHECKRECORDING A VOIDED CHECK page 122

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CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning

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LESSON 5-1

TERMS REVIEWTERMS REVIEW

code of conduct checking account endorsement blank endorsement special endorsement restrictive endorsement postdated check

page 123