Chapter 5 Cash Control Systems • 91
Study
Guide
5
Part One—Identifying Accounting Terms
Directions: Select the one term in Column I that best fits each definition in
Column II. Print the letter identifying your choice in the Answers column.
Name Perfect
Score
Your
Score
Identifying Accounting Terms 18 Pts.
Analyzing Transactions in a Cash Control System 12 Pts.
Identifying Accounting Concepts and Practices 20 Pts.
Total 50 Pts.
Answers
1.
2.
3.
4.
5.
6.
Column I
A. bank statement
B. blank endorsement
C. canceled check
D. cash over
E. cash short
F. checking account
Column II
1. A bank account from which payments can be ordered by a
depositor. (p. 123)
2. A bank form which lists the checks, currency, and coins an
account holder is adding to the bank account. (p. 123)
3. A signature or stamp on the back of a check, transferring
ownership. (p. 124)
4. An endorsement consisting only of the endorser’s signature. (p. 124)
5. An endorsement indicating a new owner of a check. (p. 124)
6. An endorsement restricting further transfer of a check’s
ownership. (p. 125)
F
H
K
B
Q
P
Part Two—Analyzing Transactions in a Cash
Control System
Directions: Analyze each of the following transactions into debit
and credit parts. Print the letter identifying your choice in the
proper Answers columns.
Account Titles
1–2. Received bank statement showing bank service charge. (p. 133)
3–4. Received notice from the bank of a dishonored check from J. Erlandson. (p. 136)
Answers
Debit Credit
1. 2.
3. 4.
G
C
A
A
Chapter 5 Cash Control Systems • 93
Name Date Class
Part Three—Identifying Accounting Concepts and Practices
Directions: Place a T for True or F for False in the Answers column to show whether
each of the following statements is true or false.
1. Because cash transactions occur more frequently than other transactions, there is more
chance for making recording errors affecting cash. (p. 122)
2. When a deposit is made in a bank account, the bank issues a check. (p. 123)
3. There are three types of endorsements commonly used: blank, special, and restrictive. (p. 124)
4. A check with a blank endorsement can be cashed by anyone who has possession of the
check. (p. 124)
5. When writing a check, the first step is to prepare the check. (p. 126)
6. Most banks do not look at the date the check is written and will withdraw money from
the depositor’s account anytime. (p. 126)
Answers
1.
2.
3.
4.
5.
6.
T
F
T
T
F
F
Across
1. A report of deposits, withdrawals, and bank
balances sent to a depositor by a bank.
4. A bank card that automatically deducts the
amount of a purchase from the checking account
of the cardholder.
Down
2. A signature or stamp on the back of a check
transferring ownership.
3. A form showing proof of a petty cash payment.
5. An accounting worker who processes routine
12
7
10 11
12 13
8
9
45
6
3
12
7
10 11
12 13
8
9
45
6
3
BANK STAT
CA SHS
P
E
C
II
A
L
H
E
N
D
O
R
S
E
M
E
N
ME
RT
NT
IDED HCKO
OS
H
E
A
TDTD
CHEC
K
E
N
A
L
B
BIT
T
Y
C
A
S
H
S
C
C
O
U
N
T
I
E
P
O
S
I
T
S
E
P
C
ARDED
P
V
Chapter 5 Cash Control Systems • 95
Name Date Class
5-1 WORK TOGETHER, p. 128
Endorsing and writing checks
1. a. b.
ENDORSE HERE
X
DO NOT WRITE, STAMP, OR SIGN BELOW THIS LINE
RESERVED FOR FINANCIAL INSTITUTION USE
ENDORSE HERE
X
DO NOT WRITE, STAMP, OR SIGN BELOW THIS LINE
RESERVED FOR FINANCIAL INSTITUTION USE
GRANTSBURG ACCOUNTING NO. 151
1198 Rose Lane
New Brighton, MN 55112 20
PAY TO THE
ORDER OF $
DOLLARS
Northstar Federal Bank
Minneapolis, MN
FOR
93-552
920
A092005529A 707966631278C 151
2., 3., 4a.
NO. 151 $
Date: 20
To:
For:
BALANCE BROUGHT FORWARD
AMOUNT DEPOSITED
SUBTOTAL Date
OTHER:
SUBTOTAL
AMOUNT THIS CHECK
BALANCE CARRIED FORWARD
Student’s Signature Pay to the order of
Clara Kwon
Student’s Signature
A1 Computers
Student’s Signature
June 30
148.00
One hundred forty-eight and no/100
Repairs
– –
148.00
June 30
A1 Computers
Repairs
2,145 88
6 30 – – 316 00
2,461 88
2,461 88
148 00
2,313 88
– –
96 • Working Papers
5-1 ON YOUR OWN, p. 128
Endorsing and writing checks
1. a. b.
ENDORSE HERE
X
DO NOT WRITE, STAMP, OR SIGN BELOW THIS LINE
RESERVED FOR FINANCIAL INSTITUTION USE
ENDORSE HERE
X
DO NOT WRITE, STAMP, OR SIGN BELOW THIS LINE
RESERVED FOR FINANCIAL INSTITUTION USE
MILLTOWN HAIR CARE NO. 318
7921 Main Street
Milltown, WI 54825 20
PAY TO THE
ORDER OF $
DOLLARS
Wisconsin National Bank
Milltown, WI 54825
FOR
A073008219A 607964511278C 318
93-109
730
4b.
NO. 318 $
Date: 20
To:
For:
BALANCE BROUGHT FORWARD
AMOUNT DEPOSITED
SUBTOTAL Date
OTHER:
SUBTOTAL
AMOUNT THIS CHECK
BALANCE CARRIED FORWARD
Pay to the order of
Kevin Deters
Student’s Signature
For deposit only to
the account of
Milltown Hair Care
Student’s Signature
Salon Supplies
Student’s Signature
March 31
328.00
Three hundred twenty-eight and no/100
Supplies
– –
328.00
March 31
Salon Supplies
Supplies
1,793 18
1,793 18
1,793 18
328 00
1,465 18
– –
TE
3.
GENERAL JOURNAL PAGE
5-2 WORK TOGETHER, p. 134
Reconciling a bank statement and recording a bank service charge
NO. 309 $
Date: 20
To:
For:
BALANCE BROUGHT FORWARD
AMOUNT DEPOSITED
SUBTOTAL
OTHER:
SUBTOTAL
AMOUNT THIS CHECK
BALANCE CARRIED FORWARD
RECONCILIATION OF BANK STATEMENT (Date)
Balance On Check Stub No. __
_
. . . . . . . . . . . . Balance On Bank Statement . . . . . . . . . . . . . . . . . .
DEDUCT BANK CHARGES:
Description Amount
ADD OUTSTANDING DEPOSITS:
Amount
Date
$
1.
2.
$
$
$
Date
16
20 00
Service Charge
2,822
00
300 00
08/28/– –
August 29, 20 – –
2,712
00
2,822 00
2,822 00
20 00
2,802 00
Service Charge 20.00
309
3.
GENERAL JOURNAL PAGE
5-2 ON YOUR OWN, p. 134
Reconciling a bank statement and recording a bank service charge
NO. 224 $
Date: 20
To:
For:
BALANCE BROUGHT FORWARD
AMOUNT DEPOSITED
SUBTOTAL
OTHER:
SUBTOTAL
AMOUNT THIS CHECK
BALANCE CARRIED FORWARD
2.
Date
RECONCILIATION OF BANK STATEMENT (Date)
Adjusted Check Stub Balance . . . . . . . . . . . . . . Adjusted Bank Balance . . . . . . . . . . . . . . . . . . . . . .
Total outstanding checks
Ck.
No. Amount
Ck.
No. Amount
1.
$$
12
4,151 00
4,151 00
25 00
4,126 00
Service Charge 25.00
4,126
00
220
222
223
140
616
160
00
00
00
June 30, 20 – –
4,126
916
00
00
Chapter 5 Cash Control Systems • 99
5-3 WORK TOGETHER, p. 139
Recording dishonored checks, electronic funds transfers, and debit card purchases
GENERAL JOURNAL PAGE
DATE ACCOUNT TITLE DOC.
NO.
POST.
REF. DEBIT CREDIT
1 1
2 2
3 3
15
20–
Aug. 18 Accounts Receivable—Christine Iverson M312 1 5 1 00
Cash 1 5 1 00
20 Accounts Payable—Schwartz Enterprises M313 2 7 0 00
100 • Working Papers
5-3 ON YOUR OWN, p. 139
Recording dishonored checks, electronic funds transfers, and debit card purchases
GENERAL JOURNAL PAGE
DATE ACCOUNT TITLE DOC.
NO.
POST.
REF. DEBIT CREDIT
1 1
2 2
3 3
TE
12
20–
July 12 Accounts Receivable—Tiffany Hooverman M78 1 6 0 00
Cash 1 6 0 00
13 Accounts Payable—Alfredson Company M79 4 8 6 00
Chapter 5 Cash Control Systems • 101
5-4 WORK TOGETHER, p. 146
Establishing and replenishing a petty cash fund
1.
2.
GENERAL JOURNAL PAGE
DATE ACCOUNT TITLE DOC.
NO.
POST.
REF. DEBIT CREDIT
1 1
2 2
29 29
30 30
PETTY CASH REPORT
Date: Custodian:
Explanation
Reconciliation
Replenish
Amount
Fund Total
Payments:
20–
Nov. 1Petty Cash C64 2 0 0 00
Cash 2 0 0 00
30 Postage Expense C86 2 4 00
22
Student’s Signature
November 30, 20 – –
Postage Expense
Miscellaneous Expense
200.00
24.00
20.00
102 • Working Papers
5-4 ON YOUR OWN, p. 146
Establishing and replenishing a petty cash fund
1.
2.
GENERAL JOURNAL PAGE
DATE ACCOUNT TITLE DOC.
NO.
POST.
REF. DEBIT CREDIT
1 1
2 2
29 29
PETTY CASH REPORT
Date: Custodian:
Explanation
Reconciliation
Replenish
Amount
Fund Total
Payments:
TE
20–
Apr. 1Petty Cash C228 2 5 0 00
Cash 2 5 0 00
30 Delivery Expense C253 4 8 00
8
Student’s Signature
April 30, 20 – –
Delivery Expense
Miscellaneous Expense
250.00
48.00
30.00
Chapter 5 Cash Control Systems • 103
Name Date Class
5-1 APPLICATION PROBLEM, p. 149
Endorsing and writing checks (LO1, 2, 3)
ENDORSE HERE
X
DO NOT WRITE, STAMP, OR SIGN BELOW THIS LINE
RESERVED FOR FINANCIAL INSTITUTION USE
1. a.
Student’s Signature
104 • Working Papers
Wash N’ Dry NO. 412
2525 Niles Lane
Centuria, WI 54824 20
PAY TO THE
ORDER OF $
DOLLARS
Barron County Bank
Balsam Lake, WI
FOR
Wash N’ Dry NO. 410
2525 Niles Lane
Centuria, WI 54824 20
PAY TO THE
ORDER OF $
DOLLARS
Barron County Bank
Balsam Lake, WI
FOR
NO. 412 $
Date: 20
To:
For:
BALANCE BROUGHT FORWARD
AMOUNT DEPOSITED
SUBTOTAL Date
OTHER:
SUBTOTAL
AMOUNT THIS CHECK
BALANCE CARRIED FORWARD
NO. 410 $
Date: 20
To:
For:
BALANCE BROUGHT FORWARD
AMOUNT DEPOSITED
SUBTOTAL Date
OTHER:
SUBTOTAL
AMOUNT THIS CHECK
BALANCE CARRIED FORWARD
4c.
5-1 APPLICATION PROBLEM (concluded)
2., 3., 4a.
17-432
965
17-432
965
A096575527A 701596631726C 410
A096575527A 701596631726C 412
TE
Barbaye Sam
Student’s Signature
August 31
600.00
Six hundred and 00/100
Rent
Central Supplies
Student’s Signature
August 31
649.50
Six hundred forty-nine and 50/100
Supplies
600.00
649.50
August 31
August 31
Barbaye Sam
Central Supplies
Rent
Supplies
5,155 25
5,155 25
5,155 25
600 00
4,555 25
4,125 15
8 31 – – 1,976 60
6,101 75
6,101 75
649 50
5,452 25
– –
– –
– –
– –
Name Date Class
5-2 APPLICATION PROBLEM, p. 149
Reconciling a bank statement and recording a bank service charge (LO4, 5)
1.
3.
GENERAL JOURNAL PAGE
RECONCILIATION OF BANK STATEMENT (Date)
Balance On Check Stub No. __
_
. . . . . . . . . . . . Balance On Bank Statement . . . . . . . . . . . . . . . . . .
DEDUCT BANK CHARGES:
Description Amount
ADD OUTSTANDING DEPOSITS:
Amount
Date
$
Total outstanding deposits
SUBTOTAL . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$
$
$
$
2. NO. 477 $
Date: 20
To:
For:
BALANCE BROUGHT FORWARD
AMOUNT DEPOSITED
SUBTOTAL Date
OTHER:
SUBTOTAL
AMOUNT THIS CHECK
BALANCE CARRIED FORWARD
8
25 00
Service Charge
2,116
15
805 10
04/29/– –
April 30, 20– –
1,812
2,617
805
00
10
10
477
Service Charge 25.00
2,116 15
2,116 15
25 00
2,091 15
106 • Working Papers
5-3 APPLICATION PROBLEM, p. 150
Recording dishonored checks, electronic funds transfers, and debit card purchases (LO6, 7, 8)
GENERAL JOURNAL PAGE
DATE ACCOUNT TITLE DOC.
NO.
POST.
REF. DEBIT CREDIT
1 1
2 2
3 3
TE
3
20–
Feb. 25 Accounts Receivable—Roland Ewing M414 30500
Cash 3 0 5 00
26 Accounts Payable—Drew Geist M415 3 1 0 00
5-4 APPLICATION PROBLEM, p. 150
Establishing and replenishing a petty cash fund (LO9, 10, 11)
1.
2.
PETTY CASH REPORT
Date: Custodian:
Explanation
Reconciliation
Replenish
Amount
Fund Total
Payments:
Less: Total payments
Equals: Recorded amount on hand
Less: Actual amount on hand
Equals: Cash short (over)
Amount to Replenish
GENERAL JOURNAL PAGE
Student’s Signature
June 30, 20 – –
Postage Expense
Miscellaneous Expense
300.00
155.00
75.00
230.00 230.00
234.00
70.00
66.00
4.00 4.00
11