LESSON 5-1 6/18/2007

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CENTURY 21 ACCOUNTING © Thomson/South-Western

Chapter 5Chapter 5

Cash

Control

Systems

CENTURY 21 ACCOUNTING © Thomson/South-Western

Objectives:Objectives:1. Define accounting terms related to using

a checking account and a petty cash fund.

2. Identify accounting concepts and practices related to using a checking account.

3. Prepare business papers related to using a checking account.

id73418281 pdfMachine by Broadgun Software - a great PDF writer! - a great PDF creator! - http://www.pdfmachine.com http://www.broadgun.com

LESSON 5-1 6/18/2007

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CENTURY 21 ACCOUNTING © Thomson/South-Western

Objectives:Objectives:4. Reconcile a bank statement.

5. Journalize dishonored checks and electronic baking transactions.

6. Establish and replenish a petty cash fund.

CENTURY 21 ACCOUNTING © Thomson/South-Western

LESSON 5LESSON 5--11

Checking Accounts

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DEPOSITING CASHDEPOSITING CASH page 119

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CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 5-1

DEPOSIT RECORDED ON A CHECK DEPOSIT RECORDED ON A CHECK STUBSTUB page 119

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CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 5-1

ENDORSEMENTSENDORSEMENTS page 120

Blank Endorsement

Special Endorsement

Restrictive Endorsement

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CENTURY 21 ACCOUNTING © Thomson/South-Western 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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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.

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CENTURY 21 ACCOUNTING © Thomson/South-Western 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 © Thomson/South-Western

LESSON 5LESSON 5--22

Bank

Reconciliation

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BANK STATEMENTBANK STATEMENT page 124

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5. Bank Statement Balance

BANK STATEMENT RECONCILIATIONBANK STATEMENT RECONCILIATION

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66

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9. Adjusted Bank Balance

page 125

2. Check Stub Balance

10. Compare Adjusted Balances

1. Date

3. Service Charge4. Adjusted Check

Stub Balance

6. Outstanding Deposits

7. Subtotal8. Outstanding

Checks 1010

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CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 5-1

1. Write Service Charge $8.00on the check stub under the heading �Other.�

RECORDING A BANK SERVICE CHARGE RECORDING A BANK SERVICE CHARGE ON A CHECK STUBON A CHECK STUB page 126

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2. Write the amount of the service charge in the amount column.

3. Calculate and record the new subtotal on the Subtotal line.

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JOURNALIZING A BANK SERVICE JOURNALIZING A BANK SERVICE CHARGECHARGE

1. Date. Write the date.

page 127

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August 31. Received bank statement showing August bank service charge, $8.00. Memorandum No. 3.

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2. Debit. Write the title of the account to be debited. Record the amount debited.

3. Credit. Record the amount credited.4. Source document. Write the source

document number.

CENTURY 21 ACCOUNTING © Thomson/South-Western

ApplicationApplication

Application Problem

5-2

(p. 140)Interactive work paper available at textbook website

http://www.accountingxtra.swlearning.com/fundamentals/student/toolbox.html

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CENTURY 21 ACCOUNTING © Thomson/South-Western

LESSON 5LESSON 5--33

Dishonored Checks and Electronic

Banking

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RECORDING A DISHONORED CHECK ON RECORDING A DISHONORED CHECK ON A CHECK STUBA CHECK STUB

1. Write Dishonored check $105.00 on the line under the heading �Other.�

page 129

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2. Write the total of the dishonored check in the amount column.

3. Calculate and record the new subtotal on the Subtotal line.

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JOURNALIZING A DISHONORED CHECKJOURNALIZING A DISHONORED CHECK

1. Date. Write the date.

page 130

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November 29. Received notice from the bank of a dishonored check from Campus Internet Café, $70.00, plus $35.00 fee; total,$105.00. Memorandum No. 55.

2. Debit. Write the title of the account to be debited.

3. Credit. Write the amount credited.4. Source document. Write the

source document number.

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JOURNALIZING AN ELECTRONIC FUNDS JOURNALIZING AN ELECTRONIC FUNDS TRANSFERTRANSFER

1. Date. Write the date.

page 131

September 2. Paid cash on account to Kelson Enterprises, $350.00, using EFT. Memorandum No. 10.

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2. Debit. Write the title of the account to be debited. Record the amount debited.

3. Credit. Record the amount credited.4. Source document. Write the source

document number.

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JOURNALIZING A DEBIT CARD JOURNALIZING A DEBIT CARD TRANSACTIONTRANSACTION

1. Date. Write the date.

page 132

September 5. Purchased supplies, $24.00, using debit card. Memorandum No. 12.

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2. Debit. Write the title of the account to be debited. Record the amount debited.

3. Credit. Record the amount credited.

4. Source document. Write the source document number.

CENTURY 21 ACCOUNTING © Thomson/South-Western

ApplicationApplication

Application Problem

5-3

(p. 140)Interactive work paper available at textbook website

http://www.accountingxtra.swlearning.com/fundamentals/student/toolbox.html

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CENTURY 21 ACCOUNTING © Thomson/South-Western

LESSON 5LESSON 5--44

Petty

Cash

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CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 5-1

ESTABLISHING A PETTY CASH FUNDESTABLISHING A PETTY CASH FUND

1. Date. Write the date.

page 134

August 17. Paid cash to establish a petty cash fund, $100.00. Check No. 8.

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2. Debit. Write the title of the account to be debited. Record the amount debited.

3. Credit. Record the amount credited.4. Source document. Write the source document

number.

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MAKING PAYMENTS FROM A PETTY CASH MAKING PAYMENTS FROM A PETTY CASH FUND WITH A PETTY CASH SLIPFUND WITH A PETTY CASH SLIP page 135

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CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 5-1

REPLENISHING PETTY CASHREPLENISHING PETTY CASH

1. Date. Write the date.

page 136

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August 31. Paid cash to replenish the petty cash fund, $30.00: miscellaneous expense, $20.00; advertising, $10.00. Check No. 12.

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4. Source document. Write the source document number.3. Credit. Record the amount credited.

2. Debit. Write the title of the first account to be debited. Write the amount to be debited. Write the title of the second account to be debited. Record the amount to be debited.

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ApplicationApplication

Application Problem

5-4

(p. 141)Excel work papers available at:

http://www.accountingxtra.swlearning.com/fundamentals/student/toolbox.html

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CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 5-1

TERMS REVIEWTERMS REVIEW

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

page 123

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TERM REVIEWTERM REVIEW

bank statement

page 128

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TERMS REVIEWTERMS REVIEW

dishonored check electronic funds transfer debit card

page 133

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TERMS REVIEWTERMS REVIEW

petty cash petty cash slip

page 138

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HomeworkHomework

1.1 Application Problems

a. Review problems completed in class.b. Use available interactive e-work papers to complete

application problems not worked in class. c. No Chapter 5 application problems are due this week.

1.2 Mastery Problem 5-5 (p. 141)Sect. 3A � Due 06/21/07Sect. 5B � Due 06/19/07

1.3 Quiz � Chapter 5a. Sect. 3A � Due 06/21/07

Sect. 5B � Due 06/19/07b. Email quiz results to Instructor

(pcarter9@mccneb.edu) and toyourself.

1.4 Exam 1 (Chapters 1 � 5), 100 points, 75 minutesSect. 3A -- Sat, 06/23/07Sect. 5B � Sat, 06/21/07

Congratulations ! You have made it through Chapter 5.

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Reminder:Reminder:

Exam #1

Chapters 1 through 5

Sect. 3A � Saturday, 06/23/07

Sect. 5B � Thursday, 06/21/07