Contemporary Mathematics

A(n) ___________ is a written order to a bank by a depositor to pay the amount specified from funds on deposit in a checking account.

A check ___________ is a separate booklet used to keep track of checking account activity.

As the purchasing manager for Fuzzy Logic Industries, write a check dated April 29, 20xx, in the amount of $24,556.00, to Outback Electronics, Inc., for circuit boards.

As cashier for Cellini's Pizza, it is your responsibility to make the daily deposits. Complete the deposit slip below based on the following information. a. Date: January 20, 20xx. b. Checks totaling $344.20. c. Currency of $547.00. d. Coins: 125 quarters, 67 dimes, 88 nickels, and 224 pennies.

Attached by perforation to checks, check ___________ are one method of tracking checking account activity.

From the following information, complete the two check stubs and the check register below. a. Starting balance: $463.30. b. April 15, 20xx, check #450 issued to the Keystone Market for groceries in the amount of $67.78. c. April 17, debit card purchase of $250. d. April 19, deposit of $125.45. e. April 20, deposit of $320.00. f. April 27, check #451 in the amount of $123.10 to Ace Appliance, Inc., for refrigerator repair.

On a check, the ___________ is the person or business issuing the check; the ___________ is the person or business named on the check to receive the money.

When a(n) ___________ card is used, the amount of the transaction is deducted electronically from the checking account.

Sometimes banks offer checking accounts that earn interest on the average daily balance of the account each month. This interest is calculated using a formula known as the simple interest formula. The formula is written as: Interest = Principal × Rate × Time I = PRT The formula states that the amount of interest earned on the account is equal to the principal (average daily balance) multiplied by the rate (interest rate per year-expressed as a decimal) multiplied by the time (expressed in years-use 1 12 to represent one month of a year). a. If you have not already done so, complete the Business Decision, Choosing a Bank on page 112. b. Use the simple interest formula to calculate the amount of interest you would earn per month if the Intercontinental Bank was offering 2% (.02) interest per year on checking accounts. (Note that your average daily balance changes from $900 to $2,400 in the last six months of the year.) c. How much interest would you earn per month at Bank of America if it were offering 1.5 percent (.015) interest per year on checking accounts? Round to the nearest cent when necessary. d. Recalculate the cost of doing business with Intercontinental Bank and Bank of America for a year. e. Based on this new information, which of the four banks should you choose for your checking account?

On October 1, Jessica Clay received her bank statement showing a balance of $374.52. Her checkbook records indicate a balance of $338.97. There was a service charge for the month of $4.40 on the statement. The outstanding checks were for $47.10, $110.15, $19.80, and $64.10. The deposits in transit totaled $125.50. There was a $75.70 debit for automatic payment of her telephone bill. Use the following form to reconcile Jessica's checking account.

The signature and instructions on the back of a check are known as the ___________.

You have just received a check. Your account number is #9299-144-006. Write the following endorsements in the space provided below and identify what type they are. a. Allowing the check to be transferred to Expo, Inc. b. Allowing you to cash the check. c. Allowing you to deposit the check in your account. a. b. c.

There are three types of endorsements used on checks: the blank, the restrictive, and the ___________ endorsement.

When Heather Gott went online to check her account balance in the morning, it was $823.71. During the day, she used her debit card for the following purchases: groceries-$48.38, flowers-$13.86, prescription refill-$28.00, and gasoline-$56.28. There was a $0.45 charge to use her debit card for the gas purchase. She also used her debit card to buy a roll of stamps for $44.00. In her mail there was a birthday card with a $75 check from her uncle. Heather took the check to the bank and deposited it. What should she expect her account balance to be the following morning?

When cash is being withdrawn at the time of a deposit, a(n) ___________ is required on the deposit slip.

A bank ___________ is a monthly summary of activities in a checking account.

The form used to record money being added to the checking account is a called a(n) ___________.

Write the word form of $52.45 as it would appear on a check.

Additions to a checking account are called ___________; subtractions from a checking account are called ___________.

Using the form on page 121, prepare a bank reconciliation for Kali Loi from the following checkbook records and bank statement.