Chapter_7_Teacher_Outline_With_Answers.doc - Accounting for...

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Accounting for a Merchandising Business Organized as a Partnership - Chapter 7 - Cash Control Systems Julie Junior has decided that keeping track of the money she is earning and paying out is difficult to do on her own. So she decides to open up an account at a bank where she can put in the money she is making and keep better track of where her money is going. She decides that a checking account will be fit her needs, so she opens a checking account at Banks For You. A CHECKING ACCOUNT is - a bank account that can be used to pay other people if the depositor (the person putting in the money) writes out a check. To open the checking account Julie has to provide a signature on a signature card for the bank records, so only she or other authorized people she wants can sign the checks and get money out. However, in order to use checks or get money out, Julie needs to put money into her account for later use. To put money into the bank she will need to get a deposit slip from the bank and write down the amount of money she wants to put into her account so the bank knows what money she wants to put in and if there is any money she wants to take out. A deposit slip must be prepared for all cash and/or check transactions to be placed in a bank account. If she deposits money, she just needs to write the amount of money to put in the bank on the cash line, however, Julie is only putting in a check in the amount of $ 400.00 in the bank. So she will write $ 400.00 on the checks line. If she deposits more than one check she can use the extra lines provided. Sometimes there are not enough lines to list all of the checks on the front of the deposit slip, so there are extra lines on the back of the deposit slip also. She will need to add up all of the money she is depositing and write the amount on the subtotal line. If she wants to get some cash back from the money she is putting in she can put the amount of money she wants to take out on the withdrawal line. Once is done filling out the subtotal and withdrawal, she needs to figure out the total. If there is just a subtotal (no withdrawal) she will write the same number as the subtotal on the total line. If there is a withdrawal she will need to take the subtotal and – (minus) the amount of the withdrawal and put the rest of the amount on the total line. Banks For You Date8/1/20-- For deposit to the account of Cash ________ Checks 93-108 $ 400.00 Julie Junior ________ 241 N. 300W. ________ Salt lake City, UT 84103 ________ Subtotal $ 400.00
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When Julie signs her name of the back of her check, it is called an ENDORSEMENT . An endorsement can either be a signature or stamp on the back of a check, and by signing her name she is transferring (or giving) ownership of the check and money to the bank. There are different types of endorsements you can use on the back of a check, the first one is a BLANK ENDORSEMENT . A Blank Endorsement is - an endorsement consisting only of the endorser’s signature.
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