BOSAS

PROPERTY OF PIMA COUNTY JTED, 2010

In the box provided, what do you think the term bank reconciliation statement means?

1.Define vocabulary related to bank statements.2.Prepare a reconciliation of a bank statement.3.Record a bank service charge.

1.Define vocabulary related to bank statements.

2.Prepare a reconciliation of a bank statement.

3.Record a bank service charge.

Bank statement – a report of deposits, withdrawals, and checking account balances sent by the bank to the account holder on a monthly basisBank reconciliation statement-a statement that balances your check stub record or check register with the bank’s statement

Even though it is rare for a bank to make mistakes, it is important to check the bank statement.

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The business might not have recorded a service charge.

There may be outstanding deposits.

There may be outstanding checks.

There may be math errors.

Reconciliation verifies that information in the bank statement and in the checkbook are in agreement.Ex. reconciliation:

Steps 1-10 for Reconciliation

1.

2.

3.

4.

5.

6.

7.

8.

9.10.

Steps 1-10 for Reconciliation1. Write the date in the top right2. Write the balance from next unused check

stub3. List bank charges and label them “sc”4. Write the adjusted check stub balance5. Write the ending balance from the

statement6. Write date/amount of outstanding deposits7. Subtotal of deposits and statement balance8. Write Check No./amount of outstanding

checks9. Calculate subtotal minus outstanding checks10. Compare the 2 adjusted balances. If they

are different the error must be found.

2.

3. 5.

3 steps:1. Write service charge under other2. Write the amount3. Calculate new subtotal

1,000.00

Service Charge 8.00 8.00

992.00

Now, you fill out a check stub for a service charge of $15.00.

Exit Ticket:

On your exit ticket, list 4 of the steps to reconcile a bank statement.

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Now it’s your turn!

Given a bank statement for Big Tom’s Truck Stop, complete a reconciliation, andthen fill out a check stub for the servicecharge on the formsprovided on your handout.

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BOSAS

PROPERTY OF PIMA COUNTY JTED, 2010

In the box provided, write 3 sentences explaining why you think doing banking online and using debit cards have become very popular recently.

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1.Define accounting vocabulary related to electronic banking.2.Record and journalize a dishonored check.3.Journalize an electronic funds transfer.4.Journalize a debit card transaction.

Define accounting vocabulary related to electronic banking.

Record and journalize a dishonored check.

Journalize an electronic funds transfer.

Journalize a debit card transaction.

Dishonored Check – a check that the bank refuses to pay.

Electronic Funds Transfer – a computerized transfer of money from one account to another.

Debit Card – a bank card that automatically withdraws money from a checking account.

Journalize – Enter (notes or information) in a journal or account book

Reasons that a bank won’t honor a check:

1. There are insufficient funds in the account2. The check appears to be altered3. The signature doesn’t match the signature card4. The amount written in words and numbers don’t match5. The check is postdated6. There has been a stop payment placed on the check

1. Write “Dishonored Check” in other column. The amount is $50 for the bad check and $30 for the bank fee.2. Write the total in the amount column.3. Calculate the new subtotal

*Now practice one

on your own!

1.2.3.

1. Write the date “30”2. Write the Debit Account Title and Amount3. Write the amount credited in cash column4. Write the source document M24 in Doc. No.

Now practice one on your own!

1.

2.

3.4.

An electronic funds transfer is a transfer of money from one account to another that is arranged through the bank. It is journalized similar to writing a check but has a source document of a memo instead of a check.It is important to remember to record your EFT on your check stub to keep your records accurate. It is recorded under the “other” category.

NO. 395$ ___________________________Date _______________________________________To ______________________________________________________________________________________For_________________________________________============================Bal. Brought Forward $3,286.00Amount Dep. ____________ ___________

DateSubtotal……………………… 3,286.00Other: EFT $200.00 __200.00Subtotal……………………… 3.086.00Amount for this check: ___________Bal. Carried Forward….. ___________

1. Write the date “4”2. Write the Debit Account Title and Amount3. Write the amount credited in cash column4. Write the source document M12 in Doc. No.

Now practice one on your own!

1.

2.

3.4.

The main difference between a debit card and a credit card is that the when a purchase is made with a debit card the purchase amount is automatically taken out of the checking account.

It is important to remember to record your purchases on your check stub to keep your records accurate. Debit card transactions are recorded on the “other” line.

1. Write the date “8”2. Write the Debit Account Title and Amount3. Write the amount credited in cash column4. Write the source document M42 in Doc. No.

Now practice one on your own!

1.

2.

3.4.

Exit Ticket:On your exit ticket, for each of the four transactions write which account is debited and which one is credited.

1. Paid cash on account to Big Trucks $365.00, using EFT2. Received notice of dishonoredcheck from Perez Supply $132.003. Purchased supplies, $49.00, using debit card4. Received bank statement showing Sept. service charge $9.00

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1. Paid cash on account to Big Trucks $365.00, using EFT

Accts. Pay. – Big Trucks /DebitCash/Credit

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2. Received notice of dishonoredcheck from Perez Supply $132.00

Accts. Rec. – Perez Supply /DebitCash/Credit

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3. Purchased supplies, $49.00, using debit card.

Supplies/DebitCash/Credit

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4. Received bank statement showing Sept. service charge $9.00

Misc. Expense/DebitCash/Credit

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BOSAS

PROPERTY OF PIMA COUNTY JTED, 2010

In the box, describe what the word petty cash means to you.

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1.Define vocabulary related to petty cash.2.Fill out a petty cash slip.3.Replenish the petty cash fund.

1.Define vocabulary related to petty cash.

2.Fill out a petty cash slip.

3.Replenish the petty cash fund.

Petty Cash- cash that is kept by the business for making small purchases

Petty Cash Slip- paper that keeps record of a payment from the petty cash

Petty cash is used for small cash payments

Rather than having someone write a check for something small, it is easier to have the person use petty cash.

A petty cash slip includes:1. Petty cash slip number2. Date of petty cash payment3. Who is being paid4. Reason for payment5. Amount being paid6. Account where amount will be recorded7. Signature of the person

Petty cash slips are kept in a box until the fund is replenished.

Petty Cash Slip No. 1______________________________________________________

Date: ____________Aug. 31, 2010__________________

Paid to: ____________Valencia Co.________________

For:______________Supplies_______________________

Amount: _____________$40.00____________________

Account: _________Supplies Expense___________

==================================

The petty cash fund must be replenished when it gets low and at the end of the month to have expenses recorded in the month they occurred. The check to replenish petty cash does not affect the balance of the petty cash account. Petty cash must be reconciled before it is replenished to verify the balance.

To reconcile, add the total of the petty cash slips to the balance of petty cash remaining and it should equal the beginning petty cash balance.

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1. Record the entry to establish petty cash for $150 on

the 17th using Check #9.

2. Fill out petty cash slips for the following purchases: August 20th, to The Daily Estrella for a newspaper

advertisement costing $25 (advertising expense) August 26th, to Thompson Co. for supplies costing $15

(supplies expense)

3. Record the entry to replenish petty cash on the 31s

using check #14.

1 minute summary:

On your handout, summarize the purpose of the petty cash fund.

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BOSAS

04/21/2344

Name some procedures for managing a checking account.

04/21/23Property of CTE Joint Venture 45

1. Execute procedures to manage a checking account

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Record debit transactionsRecord written checksRecord depositsRecord bank feesWrite checks and fill out deposit slipsReview end of the month bank statementReconcile bank statement

04/21/23Property of CTE Joint Venture 47

You will be responsible for recording transactions for approximately one month, July 17 – August 29 of the current year.

The transactions are listed on the next page. Checks, deposit slips, bank statement, and reconciliation forms are also found in this packet.

There are also extra checks and deposit slips as well. If you completely mess up on a check, simply write VOID over the entire check, and then use the extra ones.

04/21/23Property of CTE Joint Venture 48

Remember to fill out your check register first before you write a check, get an ATM withdrawal, use of debit card, or make a deposit.

Fill out a deposit slip when a deposit is made. This will need to be done in the activity since Direct Deposit is not an option.

When the bank statement arrives, reconcile the statement with your register. There is a form provided for you. Record any service charges in your register as well. This should be last entry for this assignment.

04/21/23Property of CTE Joint Venture 49

In 25 words describe what you learned today about managing a checking account.

04/21/23Property of CTE Joint Venture 50