Transcription
Checking Account SimulationMaking Deposits, Writing Checks, Usingthe Register, and Reconciling an Account
Direct Deposit: Allowspaychecks and benefitchecks to be directly deposited into aspecified depository institution account(savings or investment tools) Direct Payment: Authorizebills to be paidelectronically by a specified depositoryinstitution account (savings or investmenttools)
Opening an Account: Signature Card Used to verify signature May have multiple signers on one accountKami Carlton
Check Register Place to immediately recordall monetary transactions fora checking account Checks written, ATMwithdrawals, debit cardpurchases, deposits, fees, etc. Used to keep a runningbalance of the account Remember - Record everytransaction!
Overdraft: when money is withdrawn from a bank accountand the available balance goes below zero
Beginning Balance Opened Account 8/30 with beginning balance of 300.00DateType ofTransactionBalanceDescription of TransactionDebit (-) Credit ( ) 300 00
September 1st Paycheck from Utah State University Direct Deposit for 226.50DateType ofTransaction9/1Direct DepositBalanceDescription of TransactionUtah State UniversityPaycheckDebit (-)Credit ( )226 50300 00 226 50526 50
Writing a Check Personal Information Account holder’s name and address May include a phone number, not required DO NOT list a social security number for safety reasons
Writing a Check Identification Numbers First - routing numbers to identify the account’s financial institution Second - account number Third - check number
Writing a Check 9/2: Check #500 to Oakridge Apartments for Rent-- 300.00September 2Oakridge Apartments300.00Three hundred dollars & -September RentKami Carlton
September 2nd Check #500 to Oakridge Apartments for Rent 300.00Date9/1Type ofTransactionBalanceDescription of TransactionDebit (-) 300 00DirectDeposit Utah State University9/2500 Credit ( )PaycheckOakridge Apartments226 50300 00226 5052650300 00Sept Rent226 50
Step 1: Endorsing The Check Endorsement Signature on the back of the check from receivingperson approving it for deposit A check must be endorsed to be deposited Safest way to endorse the check is to wait untilgoing to the financial institution to deposit orcash the check
Blank Endorsement Receiver of thecheck signs his/hername Anyone can cash ordeposit the checkafter has been signed
Restrictive Endorsement More secure thanblank endorsement Receiver writes “fordeposit only” abovehis/her signature Allows the check toonly be deposited
Special Endorsement Receiver signs andwrites “pay to theorder of (fill inperson’s name)” Allows the check to betransferred to a secondparty Also known as a two-party check
Step 2 : Filling out a Deposit Slip Deposit slip Contains the account holder’s accountnumber and allows money (cash or check)to be deposited into the correct account Located in the back of the checkbook
September 3rd—Deposit Check for Housing200002000020000September 3
Completing a Deposit Slip¡ Checksl l l If more checks are beingdeposited than number ofspaces on the front, use thebackList each checkAdd the total, enter it on thefront
September 3rd Deposit Check from Parents for Housing 200.00Date9/1Type ofTransactionBalanceDescription of TransactionDebit (-)DirectDeposit Utah State University9/25009/3DepositPaycheckOakridge ApartmentsRentJulie CarltonMoney for HousingCredit ( )226 50300 00 300 00 226 50526 50300 00226 50200 00200 00426 50
September 3rd Direct Payment to AT & T for Cell Phone Bill 62.19Date9/1Type ofTransactionBalanceDescription of TransactionDebit (-)Credit ( ) 300 00DirectDeposit Utah State University226 50Paycheck9/2500Oakridge Apartments52650300 00300 00Rent9/3226 50Deposit Julie Carlton200 00Money for Housing9/5Direct PayAT & TCell Phone Bill226 50200 00426 50621962 19364 31
Monthly Statement Lists each monetarytransaction and thecurrent accountbalance for a specifiedtime period
Reconciling a Checking Account Reconcile Making sure that the balance in the check register has thesame balance as the balance on the monthly bank statement Doing this every month helps you ensure that you have thecorrect balance to avoid bouncing a check or having insufficientfunds Outstanding Check or Deposit A transaction that has not yet been returned for processing tothe financial institution from where it originated
9/30185 00 308.25185 00 185.00 493.2550235 0035 00 35.00 458.25
Balance Carry the balance from thebottom of the first page tothe top of the next page andbegin the OctoberTransactionsDateType ofDescription ofDebit (-)Transaction TransactionCredit( )Balance 458 25
the Register, and Reconciling an Account Checking Account Simulation ! Direct Deposit: Allows paychecks and benefit checks to be directly deposited into a specified depository institution account (savings or investmen
