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
• 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
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)