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Chapter 5 Notes Slides
Cash Control
Systems
Section 5.1:
Checking Accounts
Chapter 5 Notes Slides
Checking Account a bank account from which payments can be ordered by a depositor
Example: October 30. Prepare a deposit slip for a deposit of cash and checks: $75.00 in bills, $2.53 in coins, check with ABA #24-108 for $550.00 and check with ABA #35-913 for $251.56.
For deposit to the account of
TECHKNOW CONSULTING
7549 Broadway
Portland, OR 97202-2531
10/30/15
75 002 53
24-108 550 0035-913 251 56
879 09
Chapter 5 Notes Slides
Deposit Recorded on a Check Stub
Example: Record the balance brought forward on Check Stub No. 78, $1,805.75. Then record a deposit of $879.09 made on October 30 of the current year on Check Stub No. 78.
1805 75879 0910 30 15
2684 84
Blank, Special, and Restrictive Endorsements
Blank Endorsement
-only sign when you are at the bank
Example: Write a blank endorsement.
Chapter 5 Notes Slides
Blank, Special, and Restrictive Endorsements
Special Endorsement
Example: Write a special endorsement to transfer the check to Kelsey Sather.
Pay to the order of
Kelsey Sather
Blank, Special, and Restrictive Endorsements
Restrictive Endorsement
you are depositing the check
Example: Write a restrictive endorsement to deposit a check in the account of Balsam Lake Accounting.
For deposit only
into the account of
Balsam Lake Accounting
Chapter 5 Notes Slides
Completing a Check Stub and Check
>>
162.0010/30 15
Corner Garage
repairsOctober 30 15
2684 84162 002522 84
Corner Garage 162.00
One hundred sixty-two and 00/100----------------
repairs
92.0010/30
St. Croix Supply
supplies
2522 84
15
2522 84
2522 8492 00
2430 84
October 30
St. Croix Supply 92.00Ninety-two and 00/100-------------------------------
supplies
15
Postdated Checks
Chapter 5 Notes Slides
Recording a Voided Check
Recording a Voided Check
Nov. 17 VOID C84 --------- ---------v2015
Chapter 5 Notes Slides
Section 5.2:
depositor by a bank
verifying that information on a bank statement and a checkbook are in agreement
Chapter 5 Notes Slides
Example: On July 29 of the current year, DeepClean received a bank statement dated July 28. The following information is obtained from the bank statement and from the records of the business.
1) Prepare a bank statement reconciliation. Use July 29 of the current year as the date.
July 29, 2015
106 1575 00
service charge (SC) 2 00
2 00
1573 00
1528 00
July 28 150 00
150 001678 00
103105
70 0035 00
105 00
1573 00
2) Record the service charge on check stub No. 106.
service charge 2.00
1575 00
1575 00
2 001573 00
Chapter 5 Notes Slides
2) Record the service charge on journal page 14. Use Memorandum No. 44
as the source document.
14
July2015
29 Miscellaneous Expense M44 2 2
Section 5.3:
Chapter 5 Notes Slides
a check that a bank refuses to pay
>
the person who wrote the check has stopped payment on the check
Joe Smith
Twenty-five dollars 00/100------------- $20.00
6) Insufficient Funds
October 30, 2015
>
Chapter 5 Notes Slides
>
Example: Enter the following transaction on page 6 of the journal.
March 15
16
17
Paid cash on account to Spinoza Enterprises, $135.00, using EFT. Memorandum No. 122.
Received notice from the bank of a dishonored check from Christopher Ikola, $63.00, plus $10.00 fee; total, $73.00. Memorandum No. 121.
Purchased supplies, $31.00, using a debit card. Memorandum No. 123.
2015Mar 15 AR - Christopher Ikola M121 73 73
16 AP - Spinoza Enterprises M122 135 135
17 Supplies M123 31 31
Chapter 5 Notes Slides
Section 5.4:
Paid to:
Account:
Oct. 22, 2015
Bill Smith
9.27postage
Misc. Expense
(signature)
Chapter 5 Notes Slides
July 3.
Paid cash to replenish the petty cash fund, $78.00; supplies, $25.00; miscellaneous expense, $8.00; repairs, $45.00. C97.
July 32015
Petty Cash 250 250C5731 Supplies 25
Misc. Expense 8
Repairs Expense 45
C97 78