Checking Account Simulation Understanding Checking Accounts.
Cash Control Systems Chapter 5, Section 1 Checking Accounts.
-
Upload
darrell-anderson -
Category
Documents
-
view
221 -
download
2
Transcript of Cash Control Systems Chapter 5, Section 1 Checking Accounts.
![Page 1: Cash Control Systems Chapter 5, Section 1 Checking Accounts.](https://reader038.fdocuments.in/reader038/viewer/2022103005/56649d0d5503460f949e243f/html5/thumbnails/1.jpg)
Cash Control Systems
Chapter 5, Section 1
Checking Accounts
![Page 2: Cash Control Systems Chapter 5, Section 1 Checking Accounts.](https://reader038.fdocuments.in/reader038/viewer/2022103005/56649d0d5503460f949e243f/html5/thumbnails/2.jpg)
How Businesses Use Cash
Cash transactions occur most frequently.
Cash is easily transferred.
Good cash control system is crucial!
Businesses use a checking account so they have a written record.
![Page 3: Cash Control Systems Chapter 5, Section 1 Checking Accounts.](https://reader038.fdocuments.in/reader038/viewer/2022103005/56649d0d5503460f949e243f/html5/thumbnails/3.jpg)
Depositing Cash
Complete a deposit slip Checks listed in order of bank routing number
![Page 4: Cash Control Systems Chapter 5, Section 1 Checking Accounts.](https://reader038.fdocuments.in/reader038/viewer/2022103005/56649d0d5503460f949e243f/html5/thumbnails/4.jpg)
Deposit Recorded on aCheck Stub
![Page 5: Cash Control Systems Chapter 5, Section 1 Checking Accounts.](https://reader038.fdocuments.in/reader038/viewer/2022103005/56649d0d5503460f949e243f/html5/thumbnails/5.jpg)
Endorsing Checks
Endorsement – Signature or stamp on back of check transferring ownership
Confined to limited amount of space
Should be signed exactly as the person’s name appears on the front of the check
![Page 6: Cash Control Systems Chapter 5, Section 1 Checking Accounts.](https://reader038.fdocuments.in/reader038/viewer/2022103005/56649d0d5503460f949e243f/html5/thumbnails/6.jpg)
Types of Endorsements
Blank EndorsementEndorser’s signature only
Special EndorsementIndicates new owner of a check
Restrictive EndorsementRestricts further transfer of ownership
![Page 7: Cash Control Systems Chapter 5, Section 1 Checking Accounts.](https://reader038.fdocuments.in/reader038/viewer/2022103005/56649d0d5503460f949e243f/html5/thumbnails/7.jpg)
When a Business Pays Cash
Two parts: check stub and check Check stub is always completed first Check stub is the bank’s record of each check
written (CONCEPT: Objective Evidence)
![Page 8: Cash Control Systems Chapter 5, Section 1 Checking Accounts.](https://reader038.fdocuments.in/reader038/viewer/2022103005/56649d0d5503460f949e243f/html5/thumbnails/8.jpg)
Preparing a Check Stub
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.
1
23
4
56
![Page 9: Cash Control Systems Chapter 5, Section 1 Checking Accounts.](https://reader038.fdocuments.in/reader038/viewer/2022103005/56649d0d5503460f949e243f/html5/thumbnails/9.jpg)
Preparing a Check
7. Write the date.
11 12
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.
![Page 10: Cash Control Systems Chapter 5, Section 1 Checking Accounts.](https://reader038.fdocuments.in/reader038/viewer/2022103005/56649d0d5503460f949e243f/html5/thumbnails/10.jpg)
Voided Checks
What do you do if you make a major error when writing a check?
Write “VOID” on stub and check then file. Record an entry in the journal.
![Page 11: Cash Control Systems Chapter 5, Section 1 Checking Accounts.](https://reader038.fdocuments.in/reader038/viewer/2022103005/56649d0d5503460f949e243f/html5/thumbnails/11.jpg)
Assignment
Work Together (Textbook pg. 123)
Log in to Aplia.com Application 5-1 (Textbook pg. 140)
Chapter 5 Study Guide