Ch 11 Problems

Problems 11-5 and 11-6

Ch 11 Banking

Chapter 11 Textbook Pages

Signature Card

• Authorized Individuals

Making Deposits

• Deposit Ticket
• Deposit Slip

Writing Checks

• Payee
• Drawee
• ABA
• MICR
• Check Stub

Reconciling Bank Account

• No Journal Entry Needed
• Outstanding Checks
• Outstanding Deposits
• Bank Error
• Journal Entry Needed
• Bank Fees
• NSF Checks
• Interest
• EFT transactions
• Company Error

Ch 11 Cash

Liquidity

• ease with which asset can be converted to cash

Most Liquid Asset:

• Cash
• most in need of protection
• protect from:
• loss
• theft
• forgery
• embezzlement
• waste

Internal Controls

• strong personnel policies
• limit cash handlers
• separation of duties
• rotate duties
• force vacations
• bonding employees

• use banks, safes, and cash registers
• limit cash on-hand
• make daily deposits
• use pre-numbered checks or EFTs for payments
• change fund
• petty cash fund

• reconcile bank statements
• cash proofs
• approval process for payment