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
LESSON 5-1 6/18/2007
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CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 5-1
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
LESSON 5-1 6/18/2007
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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
1122
33
44
5566
LESSON 5-1 6/18/2007
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CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 5-1
COMPLETED CHECKCOMPLETED CHECK
7. Write the date.
page 121
1111 1212
1010
9988
77
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
1122
3344
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LESSON 5-1 6/18/2007
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CENTURY 21 ACCOUNTING © Thomson/South-Western
LESSON 5LESSON 5--22
Bank
Reconciliation
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CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 5-1
BANK STATEMENTBANK STATEMENT page 124
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CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 5-1
5. Bank Statement Balance
BANK STATEMENT RECONCILIATIONBANK STATEMENT RECONCILIATION
1122
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44
55
66
77
88
99
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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CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 5-1
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
LESSON 5-1 6/18/2007
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CENTURY 21 ACCOUNTING © Thomson/South-Western
LESSON 5LESSON 5--33
Dishonored Checks and Electronic
Banking
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CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 5-1
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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CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 5-1
JOURNALIZING A DISHONORED CHECKJOURNALIZING A DISHONORED CHECK
1. Date. Write the date.
page 130
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33
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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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CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 5-1
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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CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 5-1
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
LESSON 5-1 6/18/2007
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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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CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 5-1
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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CENTURY 21 ACCOUNTING © Thomson/South-Western
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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CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 5-1
TERM REVIEWTERM REVIEW
bank statement
page 128
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CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 5-1
TERMS REVIEWTERMS REVIEW
dishonored check electronic funds transfer debit card
page 133
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CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 5-1
TERMS REVIEWTERMS REVIEW
petty cash petty cash slip
page 138
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CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 5-1
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
([email protected]) 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