Checking Account Simulation Making Deposits, Writing Checks, Using the Register, and Reconciling an Account
Direct Deposit: Allows paychecks and benefit checks to be directly deposited into a specified depository institution account (savings or investment tools) Direct Payment: Authorize bills to be paid electronically by a specified depository institution account (savings or investment tools)
Opening an Account: Signature Card Used to verify signature May have multiple signers on one account Kami Carlton
Check Register Place to immediately record all monetary transactions for a checking account Checks written, ATM withdrawals, debit card purchases, deposits, fees, etc. Used to keep a running balance of the account Remember - Record every transaction!
Overdraft: when money is withdrawn from a bank account and the available balance goes below zero
Beginning Balance Opened Account 8/30 with beginning balance of $300.00 Date Type of Transaction Description of Transaction Debit (-) Credit (+) Balance $300 00
September 1 st Paycheck from Utah State University Direct Deposit for $226.50 Date Type of Transaction Description of Transaction Debit (-) Credit (+) Balance 300 00 9/1 Direct Deposit Utah State University 226 50 226 50 Paycheck 526 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--$300.00 September 2 Oakridge Apartments Three hundred dollars & 00/100--------------------------------------------- 300.00 September Rent Kami Carlton
September 2 nd Check #500 to Oakridge Apartments for Rent $300.00 Date 9/1 Type of Transaction Description of Transaction Debit (-) Credit (+) Balance $300 00 Direct Deposit Utah State University 226 50 226 50 Paycheck 52650 9/2 500 Oakridge Apartments 300 00 300 00 Sept Rent 226 50
Step 1: Endorsing The Check Endorsement Signature on the back of the check from receiving person approving it for deposit A check must be endorsed to be deposited Safest way to endorse the check is to wait until going to the financial institution to deposit or cash the check
Blank Endorsement Receiver of the check signs his/her name Anyone can cash or deposit the check after has been signed
Restrictive Endorsement More secure than blank endorsement Receiver writes for deposit only above his/her signature Allows the check to only be deposited
Special Endorsement Receiver signs and writes pay to the order of (fill in person s name) Allows the check to be transferred to a second party Also known as a twoparty check
Step 2 : Filling out a Deposit Slip Deposit slip Contains the account holder s account number and allows money (cash or check) to be deposited into the correct account Located in the back of the checkbook
September 3 rd Deposit Check for Housing September 3 200 00 200 00 200 00
Completing a Deposit Slip Checks l If more checks are being deposited than number of spaces on the front, use the back l List each check l Add the total, enter it on the front
September 3 rd Deposit Check from Parents for Housing $200.00 Date 9/1 Type of Transaction Description of Transaction Debit (-) Credit (+) Balance $300 00 Direct Deposit Utah State University 226 50 226 50 Paycheck 526 50 9/2 500 Oakridge Apartments 300 00 300 00 Rent 226 50 9/3 Deposit Julie Carlton 200 00 200 00 Money for Housing 426 50
September 3 rd Direct Payment to AT & T for Cell Phone Bill $62.19 Date 9/1 Type of Transaction Description of Transaction Debit (-) Credit (+) Balance $300 00 Direct Deposit Utah State University 226 50 226 50 Paycheck 52650 9/2 500 Oakridge Apartments 300 00 300 00 Rent 226 50 9/3 Deposit Julie Carlton 200 00 200 00 Money for Housing 426 50 9/5 Direct Pay AT & T 62 19 62 19 Cell Phone Bill 364 31
Monthly Statement Lists each monetary transaction and the current account balance for a specified time period
Reconciling a Checking Account Reconcile Making sure that the balance in the check register has the same balance as the balance on the monthly bank statement Doing this every month helps you ensure that you have the correct balance to avoid bouncing a check or having insufficient funds Outstanding Check or Deposit A transaction that has not yet been returned for processing to the financial institution from where it originated
9/30 185 00 $308.25 185 00 $185.00 $493.25 502 35 00 35 00 $35.00 $458.25
Balance Carry the balance from the bottom of the first page to the top of the next page and begin the October Transactions Date Type of Transaction Description of Transaction Debit (-) Credit (+) Balance $458 25