chapter 5 by: ashley kea. key points depositing cash blank endorsement, special endorsement, and...
TRANSCRIPT
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 VOCABULARY
Checking 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