Financial Algebra© Cengage/South-Western Slide 1

BANKING SERVICES

BANKING SERVICES

3-1 Checking Accounts3-2 Reconcile a Bank Statement3-3 Savings Accounts

3

Financial Algebra© Cengage/South-Western Slide 3

3-1

CHECKING ACCOUNTS3-1

CHECKING ACCOUNTS

Understand how checking accounts work. Complete a check register.

OBJECTIVES

Slide 4

CanceledCheckCheck ClearingCheck RegisterChecking AccountCreditDebit

Deposit SlipDirect DepositElectronic Funds

Transfer (EFT)EndorseInsufficient FundsOverdraft ProtectionPayee

Key Terms

Slide 7

Example 1Example 1Allison currently has a balance of $2,300 in her checking account. She deposits a $425.33 paycheck, a $20 rebate check, and a personal check for $550 into her checking account. She wants to receive $200 in cash. Determine how much will she have in her account after

the transaction?

Slide 9

Nick has a checking account with the Park Slope Savings Bank. He writes both paper and electronic checks. For each transaction, Nick enters the necessary information: check number, date, type of transaction, and amount. Instead of a check number, he uses E to indicate an electronic transaction. Determine the balance in his account after the Star Cable Co. check is written.

Example 2Example 2

Slide 10

Nick writes a check to his friend James Sloan on May 11 for $150.32. What should he write in the check register and what should the new balance be?

CHECK YOUR UNDERSTANDING

Would the final balance change if Nick had paid the cable bill before the wireless bill? Explain.

EXTEND YOUR UNDERSTANDING

Slide 11

Determine the answers for the following questions (you must show ALL work):

#2

#5

#6

#7

APPLICATIONS, p.120

Slide 12

Checking AccountCheckEFTPayeeCheck ClearingDeposit SlipDirect Deposit

EndorseCanceledInsufficient fundsOverdraft ProtectionCheck RegisterDebitCredit

Vocabulary Review:

Slide 13

Determine the answers for the following questions (you must show ALL work):

#13

#14

#15

#16

APPLICATIONS, 121-122