CHAPTER 5

By: Ashley Kea

KEY POINTS

Depositing Cash

Blank Endorsement, Special Endorsement, and Restrictive Endorsement

Check Stub and Check

Recording a Voided Check

Bank Statement

Journalizing Bank Service Charge

Dishonored Check on Check Stub

Petty Cash

IMPORTANT VOCABULARYChecking Account: business form ordering a bank to pay cash from a bank account

Postdated Check: future date

Bank Statement: report of deposits, withdrawals, and bank balances sent to depositor by a bank

Dishonored Check: check that a bank refuses to pay

Debit Card: card that automatically deducts the amount of a purchase

Petty Cash: amount of cash kept on hand• Petty Cash Slip: form showing proof of a petty cash payment

Endorsement: a signature or stamp on the back of check transferring ownership• Blank Endorsement: only signature• Special Endorsement: New owner • Restrictive Endorsement: restricting further transfer

CHECK STUB

A check stub is a business’s record of each check written for a cash payment transaction

ENDORSEMENTS

Bank Endorsement

Special Endorsement

Restrictive Endorsement

RECORDING A VOIDED CHECK

A check with errors must be marked to that others will know that it is not to be used

VOID is written in large letters across both the check and its stub