Vocab
A signature or stamp on the back of a check transferring ownership.
Endorsement
A check stub is prepared _________ the check is written.
before
The petty cash account is an ______ account with a normal ______ balance
asset, debit
Checks with an error should be marked with what?
VOID
The last step in bank reconciliation
compare adjusted balances
A form showing proof of a petty cash payment
petty cash slip
A customer prepares a _______________ each time cash or checks are placed in a bank account
Deposit Slip
Journalizing the opening of a petty cash account
debit?
credit?
Debit Petty Cash
Credit Cash
Write a special endorsement to me
Pay to the order of
Ms. Flad
Sign your name
A report of deposits, withdrawals, and bank balances sent to a depositor by a bank
Bank Statement
Bank account from which payments can be ordered by a depositor.
Checking Account
Service charges are journalized as what?
Debit? Credit?
debit miscellaneous expense
credit cash
How do you open a petty fund?
a check is written
What is the wording for a restrictive endorsement?
For deposit only to
the account of
_______________
Where do the service charge, outstanding deposits, and outstanding checks get recorded on the bank reconciliation form?
The service charge gets deducted on the left side from the check stub balance
Outstanding deposits and check get deducted/added on the right side from the bank statment balance
A check with a future date on it
postdated check
Recording a bank service charge on a check stub should be recorded as a ______________ in the business's accounting records
cash payment
How often is the petty cash fund replenished
each month
A check stub is a business’s record of each check written for a _____________
cash payment transaction
List three reasons the depositor's records may differ from the bank's records
service charge, outstanding deposit, outstanding checks, math errors
A computerized cash payments system that transfers funds without the use of checks, currency, or other paper documents.
electric funds transfer
Journalizing a dishonored check:
What accounts are you debiting and crediting?
How much?
Debit Act Receivable (check amount + fee)
Credit Cash (check amount + fee)
List 5 of the 7 components of a petty cash slip
Petty cash slip number
Date of petty cash payment
To whom paid
Reason for payment
Amount paid
Account in which amount is to be recorded
Signature of person approving petty cash payment
What are the 6 components you need to write on a check?
date, who the check is to be paid to, the amount in numbers, the amount in words, the purpose for the check, and your signature
List 8 of the 10 steps of a bank reconciliation in order
1. Date
2. Check Stub balance
3. Service Charge
4. Adjusted check stub balance
5. Bank Statement balance
6. Outstanding deposits
7. Subtotal
8. Outstanding checks
9. Adjusted bank balance
10. Compare adjusted balances