Checking Accounts

Chapter 29

Today’s Schedule

• Review of Monday’s Quiz

• Homework Check– We will review tomorrow

• Assignment of Homework

• Chapter 29

• Quiz

Monday’s Quiz

• What are the three types of checking accounts? – Regular, Interest-Bearing, Joint

• Writing checks for more money than you have in your account is known as Overdrawing

• List two of the 4 account services listed in the book. – Debit Cards, Online Checking, Overdraft Protection, Stop

Payment

• Extra Credit – The DLS Alumni Association was incorporated in what year? 1895

Homework Check

Homework

• Final Project – Marketing Plan (5 points)

• Event brochures/literature/etc.

• Who will you invite and how?

• How will you market/publicize the event?

• How will you reach your targeted group?

• Due 11/16/06 – Thursday

Account Records

• Checking accounts allow you to keep financial records on transactions

• Keep track of income and expenses

Writing a Check

• Payee– Party to whom the check is written and

will cash the check

• Drawer– Writer of the check and is paying the

money

• Drawee– Bank or Financial Institution where the

drawer has the account

Writing a Check

• Check Register (Checkbook)– Checkbook log where you keep track of all

your checking transactions

• When writing a check:– Record the Check #

– Record the Amount

– Record the Date

– Record the payee

• Purpose Line of the Check– Put Account Numbers when paying bills

Sample Check Register

Depositing a Check

• Deposit Ticket or Deposit Slip– Lists:

• Amount of Cash, Checks, & Total being deposited

• Requires an endorsement (signature)• Always record deposits in the check

register• ATM Machines usually don’t require

a deposit ticket

Bank Statements

• Bank’s record of all the transactions in your checking account

• Includes withdrawals, deposits, interest, and fees

• Includes canceled checks– Checks you have written that have been

cashed– Proof that money has been paid to

payees

Bank Reconciliation

• Reconcile – Bring into agreement or balance

• Process of seeing whether your records agree with the bank’s records for your account

• How do you reconcile?– Balance your checkbook– Search for and find errors

Balancing Your Checkbook

• Step 1:– Check to see if the bank has processed

all your checks and deposits– Outstanding Checks – Checks that have

been written but not cashed– Subtract outstanding check amount

from the balance on your bank statement

Balancing Your Checkbook

• Step 2:– Add deposits that have been made but not

recorded– Remember service fees that a bank may have

charged you– Add interest if applicable

• After checking outstanding checks and deposits, check register should match bank statement– If so, you have reconciled– If not…

Find Errors

• Check your records to see if you’ve written the correct numbers

• Check additions and subtractions• Check to see the correct balance was

carried over on each page of the check register

• Recheck outstanding checks and deposits not yet processed

• Check the bank’s additions & subtractions– Report them if you find them immediately

Quiz

• There are three parties named on a check. Name them. (3 points)

• ______ is a checkbook log where you keep track of all your checking transactions (3 points)

• There are two steps you can take to reconcile your check register & bank statement. What are they? (4 points)

• Who is De La Salle’s Executive Vice President? (1 point)