Chapter 5

In chapter 5, part I there is A, B, C, and D. A is an signature card that contains

authorized signatures.

B is the ABA number which is and American banking association identification
number that identifies what the bank and where the check is coming from.

C is the three types of endorsements which are:
Blank endorsement which is signature only
Special endorsement which is 3
rd
party check that transfer from
the owner to another person then another
Restrictive endorsement is a stamp which restricts a deposit to an
account

Preparing a check sub is easy. First you write the amount of the check.
Secondly is you write the date of the check or preferably when your going to
cash the check. Thirdly is you write down who the check is going to. Fourth is
the purpose of the check, or why cashing check. Fifth is you write the amount
of the check. Sixth is writing the new balance of your bank account on your
check.

Preparing a check is easy. First is you write the date of the check or preferably
when your going to cash the check. Thirdly is you write down who the check is
going to. Fourth is you write the amount of the check. Fifth is you right the
purpose of the check. Sixth is your signature.

Part II is ha A, B, C, and D. A difference between a bank record and a
checkbook is service charge or interest, outstanding checks which is a check
written but not cashed yet, outstanding deposit which is a deposit that hasnt
been processed by the bank, lastly is errors.
B is reconciling a bank statement which has a left and a right side. The left
side has a checkbook balance, deduct bank charges, add interest, and figure
out new balance. The right side has bank statement balance, add outstanding
deposits, deduct outstanding checks which is checks that the bank has not yet
received, lastly is figure out you new balance.

C is recording a service charge on a check sub and the steps are write service
charge, write amount, and calculate the new checkbook balance.
D is journalizing a service charge steps are date, debit miscellaneous expense,
credit cash, and the source document which is memorandum.

Part III is A, B, C, and D. A is the reasons for a dishonored check is post dated
check, checks that appears to be altered or changed, written amounts and
number amounts dont agree, no authorized signature, stop payment, and
lastly but least insufficient funds.

B is recording a dishonored check is date, debit accounts receivable, credit
cash, and source document which is memorandum.

C is journalizing a electronic fund transfer (EFT) or a debit card purchase is
date, debit amount affected, credit cash, source document which is
memorandum.
Part IV is A, B, C, D, and E. A is a formula of petty cash minus asset.

B is establish petty cash fund is date, debit petty cash, credit cash, source
document which is check.

C is petty cash slip which is petty cash number, date, who is taking the
money?, why is money being taken out?, the amount being taken out, amount
affected, and signature.
D is petty cash proof is cash remaining in the petty cash, add the petty slips,
and equal the original accounts.

E is replenish petty cash is date, debit all of the accounts that there are
receipts for, credit cash, and source document which is check