Lesson Plan 2.7 – Banking for Business
Course Title – Accounting I
Lesson Purpose – Learn banking procedures and terminology for a business.
Behavioral Objectives






Open and maintain a checking account.
Prepare a commercial deposit.
Reconcile a bank statement
Prepare journal entries resulting from banking transactions.
Discuss trends in online banking.
Analyze transactions relating to petty cash funds
Preparation
OLD TEKS Correlations:
2010 TEKS Correlations:
This lesson, as published, correlates
to the following TEKS. Any
changes/alterations to the activities
may result in the elimination of any or
all of the TEKS listed.
120.42.C
1.b. - apply information from source
documents
3.j. - reconcile a bank statement;
3.k. - prepare commercial bank
deposits;
7.a. - follow oral and written
instructions;
7.b. - develop time management
skills by setting priorities for
completing work as scheduled
7.c. - make decisions using
appropriate accounting concepts;
7.e. - perform accounting procedures
using manual and automated
methods.
This lesson, as published, correlates
to the following TEKS. Any
changes/alterations to the activities
may result in the elimination of any or
all of the TEKS listed.
130.166.C
4.a. – explain cash control
procedures such as signature cards,
deposit slips, internal and external
controls, and cash clearing;
4.f. – prepare bank deposits,
purchase requisitions, purchase
orders, sales slips, and invoices
TAKS Correlation:
READING
Objective 1: The student will demonstrate a basic understanding of culturally
diverse written texts.
WRITING
Objective 5: The student will produce a piece of writing that demonstrates a
Lesson Plan 2.7 – Banking for Business
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1
command of the conventions of spelling, capitalization, punctuation, grammar,
usage, and sentence structure.
Objective 6: The student will demonstrate the ability to revise and proofread to
improve the clarity and effectiveness of a piece of writing.
MATH
Objective 10: The student will demonstrate an understanding of the
mathematical processes and tools used in problem solving.
Materials, Equipment and Resources:






Textbook
Spreadsheet software
Multimedia presentation software
Word processing software
Internet
Index cards
Teaching Strategies:


Demonstration
Observation
Learner Preparation:
Read the article at
http://www.sba.gov/aboutsba/sbaprograms/onlinewbc/index.html
on reconciling bank statements and keeping track of a check register.
Prepare a presentation that summarizes the article you read from the Web site,
with a minimum of 6 slides.
Lesson Content:
The lesson covers instruction in opening and maintaining checking accounts,
reconciling bank statements and preparing journal entries resulting from banking
transactions.
Assessment:


Observation
Graded Assignments
Lesson Plan 2.7 – Banking for Business
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1
Additional Resources:
Textbooks:
Guerrieri, Donald J., Haber, Hoyt, Turner. Glencoe Accounting RealWorld Applications and Connections. Glencoe McGraw-Hill 2000.
ISBN/ISSN 0-02-815004-X.
Ross, Kenton, Gilbertson, Lehman, and Hanson. Century 21 Accounting
Multicolumn Journal Anniversary Edition, 1st Year Course. SouthWestern Educational and Professional Publishing, 2003.
ISBN/ISSN: 0-538-43524-0
Ross, Kenton, Gilbertson, Lehman, and Hanson. Century 21 General
Journal Accounting Anniversary Edition, 7th Edition. SouthWestern Educational and Professional Publishing, 2003.
ISBN/ISSN: 0-538-43529-1.
Websites:
Checking Account. Investopedia.com, 2009.
http://www.investopedia.com/terms/c/checkingaccount.asp.
Business Partners:



Banker
Teller
Customer Service Representative in a Bank
Lesson Plan 2.7 – Banking for Business
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1
Activity 2.7.1 – Language of Banking
Course Title – Accounting I
Lesson Title – Banking for Business
Activity Purpose - Learn terminology related to banking activities for both
personal and business.
OLD TEKS Correlations:
2010 TEKS Correlations:
This lesson, as published, correlates
to the following TEKS. Any
changes/alterations to the activities
may result in the elimination of any or
all of the TEKS listed.
120.42.C
1.b. - apply information from source
documents
3.j. - reconcile a bank statement;
3.k. - prepare commercial bank
deposits;
7.a. - follow oral and written
instructions;
7.b. - develop time management
skills by setting priorities for
completing work as scheduled
7.c. - make decisions using
appropriate accounting concepts;
7.e. - perform accounting procedures
using manual and automated
methods.
This lesson, as published, correlates
to the following TEKS. Any
changes/alterations to the activities
may result in the elimination of any or
all of the TEKS listed.
130.166.C
N/A
TAKS Correlation:
WRITING
Objective 6: The student will demonstrate the ability to revise and proofread to
improve the clarity and effectiveness of a piece of writing.
Materials, Equipment and Resources:



Textbook
Index cards
Multimedia presentation software
Activity 2.7.1 – Language of Banking
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1
Teaching Strategies:


Demonstration
Observation
Activity 2.7.1 – Language of Banking
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1
Activity Outline:
Have your students define these terms on index cards and place them on a ring.
a. checking
account
d. special
endorsement
g. bank statement
b. endorsement
c. blank endorsement
e. restrictive
endorsement
h. dishonored check
f. postdated check
j. petty cash
m.depositor
p. endorsement
s. drawer
v. outstanding
deposits
y. bank service
charge
k. petty cash slip
n. signature card
q. voiding a check
t. drawee
w. outstanding checks
i. electronic funds
transfer
l. debit card
o. deposit slip
r. payee
u. nsf check
x. bank
Ask students to use the index cards to drill with a partner to learn the terms.
Assign students five words each. Ask them to type the word and definition in a
presentation with an image that helps to tell about the definition. They can draw
the image with the drawing tools, use an image already there or a design theme
that might help to define the term.
Activity 2.7.1 – Language of Banking
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1
QUIZ ON BANKING TERMS
TERM
DEFINITION
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
A commercial institution licensed as a receiver of deposits.
A form that lets individuals compare their personal bank account
records to their account balance according to the bank to uncover
any discrepancies.
A deposit account for funds intended for quick turnover.
An authorized signature written or stamped on the back of a
check representing receipt and deposit or payment of check
A card containing the signature(s) of the person(s) authorized to
write checks on a checking account.
Canceling a check by writing the word “Void” across the front in
ink.
The person or business to whom a check is written or a note is
payable.
A check returned to the depositor by the bank because there are
not sufficient funds in the drawer’s checking account to cover the
check.
Checks that have been written but have not yet been presented to
the bank for payment.
Deposits that have been made and recorded in the checkbook but
do not appear on the bank statement.
Lets banks transfer funds among accounts quickly and accurately
without the exchange of checks.
The bank on which a check is written.
The person who signs a check.
A fee the bank charges for maintaining bank records and
processing bank statement items for the depositor.
An endorsement indicating a new owner of a check.
An endorsement restricting further transfer of a check’s
ownership.
A check with a future date on it.
An endorsement consisting of only the endorser’s signature.
A report of deposits, withdrawals, and bank balance sent to a
depositor for a bank.
A check that a bank refuses to pay.
An amount of cash keep on hand and used for making small
payments.
A form showing proof of a petty cash payment.
A written notification accompanying a bank deposit which
specifies and categorizes the funds (like checks, bills and coins)
being deposited.
A person who places funds in a bank.
A card like a credit card by which money can be withdrawn or the
cost of purchases paid directly from the holder's bank account
without the payment of interest.
2.7.1 Quiz on Banking Terms
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1
Activity 2.7.2 –Opening and Maintaining a Checking
Account
Course Title – Accounting I
Lesson Title – Banking for Business
Activity Purpose – Demonstrate skill in opening and maintaining a checking
account.
OLD TEKS Correlations:
2010 TEKS Correlations:
This lesson, as published, correlates
to the following TEKS. Any
changes/alterations to the activities
may result in the elimination of any or
all of the TEKS listed.
120.42.C
1.b. - apply information from source
documents
3.j. - reconcile a bank statement;
3.k. - prepare commercial bank
deposits;
7.a. - follow oral and written
instructions;
7.b. - develop time management
skills by setting priorities for
completing work as scheduled
7.c. - make decisions using
appropriate accounting concepts;
7.e. - perform accounting procedures
using manual and automated
methods.
This lesson, as published, correlates
to the following TEKS. Any
changes/alterations to the activities
may result in the elimination of any or
all of the TEKS listed.
130.166.C
4.f. – prepare bank deposits,
purchase requisitions, purchase
orders, sales slips, and invoices
TAKS Correlation:
WRITING
Objective 6: The student will demonstrate the ability to revise and proofread to
improve the clarity and effectiveness of a piece of writing.
MATH
Objective 10: The student will demonstrate an understanding of the
Activity 2.7.2 – Opening and Maintaining a
Checking Account
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1
mathematical processes and tools used in problem solving.
Materials, Equipment and Resources:


Textbook
Spreadsheet software
Teaching Strategies:


Demonstration
Observation
Activity 2.7.2 – Opening and Maintaining a
Checking Account
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1
Activity Outline:
Invite a customer bank service representative to speak on opening a checking
account. Ask them to explain the various types of checking accounts and
discuss things to watch out for when opening checking accounts.
Demonstrate proper endorsements, filling out deposit slips, recording check
stubs for deposits and checks and writing and voiding checks.
Have students use a Check Register spreadsheet for these transactions to
practice calculating check balances:
Beginning checkbook balance of $725.00. The following cash transactions
occurred:
Aug 1
Aug 3
Aug 5
Aug 7
Aug 10
Aug 12
Aug 13
Aug 14
Aug 15
Aug 18
Aug 21
Check No. 1, written to Tyner Studio for supplies - $59.00.
Check No. 2, written to Joshua Thomas for mowing the office
yard - $25.00
Check No. 3, written to U.S. Postal Service for stamps –
$23.50
Deposits from clients in the amount of $1,025.00, R1
Wrote check no. 4 to petty cash to replenish the fund –
$35.00.
Wrote check no. 5 to Maxum Arms Offices for rent –
$1,200.00
Wrote check no. 6 for cleaning the office - $25.00
Deposits from clients in the amount of $725.00, R2
Wrote check no. 7 to owner for personal use - $700.00.
Wrote check no. 8 to Office Supply Depot for supplies –
$95.00.
Deposited cash from clients for $2,010.00, R3
Assessment:


Observation
Graded Assignment
Quality Feature
Completes check register in detail
No errors in entry
No errors in balance
Completes in a timely manner
Activity 2.7.2 – Opening and Maintaining a
Checking Account
Score
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1
Activity 2.7.3 –Reconciling a Bank Statement
Course Title – Accounting I
Lesson Title – Banking for Business
Activity Purpose – Demonstrate skill in reconciling a bank statement.
OLD TEKS Correlations:
2010 TEKS Correlations:
This lesson, as published, correlates
to the following TEKS. Any
changes/alterations to the activities
may result in the elimination of any or
all of the TEKS listed.
120.42.C
1.b. - apply information from source
documents
3.j. - reconcile a bank statement;
3.k. - prepare commercial bank
deposits;
7.a. - follow oral and written
instructions;
7.b. - develop time management
skills by setting priorities for
completing work as scheduled
7.c. - make decisions using
appropriate accounting concepts;
7.e. - perform accounting procedures
using manual and automated
methods.
This lesson, as published, correlates
to the following TEKS. Any
changes/alterations to the activities
may result in the elimination of any or
all of the TEKS listed.
130.166.C
3.k. – prepare worksheets
3.r. – prepare balance sheets
4.f. – prepare bank deposits,
purchase requisitions, purchase
orders, sales slips, and invoices
TAKS Correlation:
WRITING
Objective 6: The student will demonstrate the ability to revise and proofread to
improve the clarity and effectiveness of a piece of writing.
MATH – Objective 10: The student will demonstrate an understanding of the
mathematical processes and tools used in problem solving.
Materials, Equipment and Resources:


Textbook
Spreadsheet software
Activity 2.7.3 – Reconciling a Bank Statement
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1
Teaching Strategies:


Demonstration
Observation
Activity 2.7.3 – Reconciling a Bank Statement
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1
Activity Outline:
Demonstrate reconciliation of a bank statement. Review that reconcile means to
bring into agreement. Your monthly bank statement is what the bank thinks you
have in your account; however, your checkbook might have something different.
You must bring them into agreement each month. Of course, you or the bank
might have made an error, but there are other reasons they might not agree,
including:
1. The bank charges you a service charge each month. You need to
deduct that from your checking account.
2. Outstanding deposits might not be recorded on the bank’s records if
you recently made a deposit.
3. Outstanding checks might have already been subtracted from your
checkbook, but if the bank hasn’t received them they aren’t yet
subtracted from the bank’s balance.
Using a Bank Reconciliation spreadsheet, reconcile the information from a bank
statement below:
Balance on check stub no. 59, $9,407.00
Balance on bank statement, $10,100.00
Outstanding Deposit made on 10/12/, $75.00
Outstanding Checks, No. 40, $25.00, No. 42, $90.00, No. 43, $299.00,
No. 44, $54.00, No. 45, $305.00
Bank Charge, $5.00
Bank Statement Dated 10/13/03
Ask each student to make up a problem for a bank reconciliation. The problem
should have the same type of information as the one above, except it should also
have a dishonored check for which the bank charged $25.00. They also need to
deduct the check from the check stub.
Have each student give their made-up problem to a partner to work for them,
using the spreadsheet.
Assessment:


Observation
Graded Assignment
Quality Feature
Left and right side of bank reconciliation in agreement
Completes in a timely manner
Made-up problem appropriate with appropriate amounts
Partner able to work the problem so it reconciled
Activity 2.7.3 – Reconciling a Bank Statement
Score
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1
Activity 2.7.4 –Journalizing and Recording Banking
Entries
Course Title – Accounting I
Lesson Title – Banking for Business
Activity Purpose – Demonstrate skill in journalizing banking transactions in a
general journal.
OLD TEKS Correlations:
2010 TEKS Correlations:
This lesson, as published, correlates
to the following TEKS. Any
changes/alterations to the activities
may result in the elimination of any or
all of the TEKS listed.
This lesson, as published, correlates
to the following TEKS. Any
changes/alterations to the activities
may result in the elimination of any or
all of the TEKS listed.
120.42.C
1.b. - apply information from source
130.166.C
documents
7.a. - follow oral and written
instructions;
7.b. - develop time management
skills by setting priorities for
completing work as scheduled
7.c. - make decisions using
appropriate accounting concepts;
7.e. - perform accounting procedures
using manual and automated methods
3.c. – demonstrate the effects of
transactions on the accounting
equation;
3.e. – use T accounts;
3.f. – record transactions in a general
journal
.
TAKS Correlation:
WRITING
Objective 6: The student will demonstrate the ability to revise and proofread to
improve the clarity and effectiveness of a piece of writing.
MATH
Objective 10: The student will demonstrate an understanding of the
mathematical processes and tools used in problem solving.
Materials, Equipment and Resources:

Textbook
Activity 2.7.4 – Journalizing and Recording Copyright © Texas Education Agency, 2011. All rights reserved.
Bank Entries
ACCOUNTING 1

Spreadsheet software
Teaching Strategies:


Demonstration
Observation
Activity 2.7.4 – Journalizing and Recording Copyright © Texas Education Agency, 2011. All rights reserved.
Bank Entries
ACCOUNTING 1
Activity Outline:
There are a number of transactions the bank might already have deducted from
your checking account even though you did not write a check. Examples: bank
service charge, dishonored check and electronic funds transfer. We are using
fewer checks in today’s world and more debit cards and electronic funds transfer.
Open a Check Register spreadsheet and record these transactions:
Checkbook beginning balance: $920.00
1. Oct. 20, the bank deducted $12.00 for a service charge. Use M14
for the source document since there was no check written.
2. Oct. 25, the bank deducted a charge of $30.00 for a returned check
(dishonored). Add the amount of the check back into your account,
$22.00. M22.
3. Oct. 30, Delivery Van payment is deducted by electronic fund
transfer, $425.00, M25.
Demonstrate by “T” account the analysis of the three transactions into debit and
credit parts.
Ask your students to use a General Journal spreadsheet to journalize the
transactions from the “T” accounts.
Assessment:


Observation
Graded Assignment
Quality Feature
All required details in Check Register
No errors in amounts in the check register
All required details on journal entries
Journal entries correctly recorded into debit and credit
parts
Completes in a timely manner
Score
Activity 2.7.4 – Journalizing and Recording Copyright © Texas Education Agency, 2011. All rights reserved.
Bank Entries
ACCOUNTING 1
Activity 2.7.5 – Petty Cash Transactions
Course Title – Accounting I
Lesson Title – Banking for Business
Activity Purpose – Demonstrate skill in handling transactions involving petty
cash funds
OLD TEKS Correlations:
2010 TEKS Correlations:
This lesson, as published, correlates
to the following TEKS. Any
changes/alterations to the activities
may result in the elimination of any or
all of the TEKS listed.
This lesson, as published, correlates
to the following TEKS. Any
changes/alterations to the activities
may result in the elimination of any or
all of the TEKS listed.
120.42.C
1.b. - apply information from source
130.166.C
documents
4.f. - open and replenish a petty
cash fund and journalize transactions;
7.a. - follow oral and written
instructions;
7.b. - develop time management
skills by setting priorities for
completing work as scheduled
7.c. - make decisions using
appropriate accounting concepts;
7.e. - perform accounting procedures
using manual and automated
methods.
4.c. – journalize and post entries to
establish and replenish petty cash
TAKS Correlation:
WRITING
Objective 6: The student will demonstrate the ability to revise and proofread to
improve the clarity and effectiveness of a piece of writing.
MATH
Objective 10: The student will demonstrate an understanding of the
mathematical processes and tools used in problem solving.
Activity 2.7.5 – Petty Cash Transactions
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1
Materials, Equipment and Resources:


Textbook
Spreadsheet software
Teaching Strategies:


Demonstration
Observation
Activity 2.7.5 – Petty Cash Transactions
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1
Activity Outline:
Have your students read about petty cash and answer these questions:
1. What classification account is petty cash? Asset
2. How do you establish a petty cash fund? Write a check for an amount
determined by the business
3. What type things should you keep in mind when determining the
amount to keep in petty cash? How often do you use small amounts of
cash? Should only be used because it is less time-consuming and
cost effective.
4. When you establish a petty cash fund, what account is debited and
why? Petty cash is debited to increase the asset.
5. When you establish a petty cash fund, what account is credited and
why? Cash because you are decreasing the asset.
6. What is the source document for journalizing the entry to establish a
petty cash fund? Check
7. Each time you remove money from the petty cash fund to use for a
small expenditure, what should you do? Replace the money with a
petty cash slip to explain what the money was used for.
8. When you begin to get low on petty cash or at the end of the month,
what is the first step to replenishing the petty cash fund? Proving the
petty cash fund.
9. Describe the procedure to prove the petty cash fund. Count the money
remaining, and then add the total of the petty cash slips. This amount
should equal the petty cash fund amount you first put in the fund.
10. When petty cash is written, a check is written. Describe the journal
entry for that check. Debit the expenses that are on the petty cash
slips and credit cash. You might have several debits that equal the
one debit.
Demonstrate preparation of the petty cash report and the journal entries.
Ask your students to prepare a Petty Cash Report spreadsheet for this
information:
Fund Balance $50.00
Count as of today Oct. 25 $17.00
Petty cash slips:
Office Supplies $22.00
Miscellaneous Expense $11.00
Using a General Journal spreadsheet, journalize the replenishing of the petty
cash fund. Wrote check number 213.
Activity 2.7.5 – Petty Cash Transactions
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1
Assessment:


Observation
Graded Assignment
Quality Feature
Petty cash fund proved
No errors in entry of the petty cash information
All required details in Journal entries
Journal entries correctly recorded in debit and credit
parts
Completes in a timely manner
Activity 2.7.5 – Petty Cash Transactions
Score
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1
Activity 2.7.6 – Online Banking
Course Title – Accounting I
Lesson Title – Banking for Business
Activity Purpose – Research information on the use of online banking
TEKS Correlations:
2010 TEKS Correlations:
This lesson, as published, correlates
to the following TEKS. Any
changes/alterations to the activities
may result in the elimination of any or
all of the TEKS listed.
This lesson, as published, correlates
to the following TEKS. Any
changes/alterations to the activities
may result in the elimination of any or
all of the TEKS listed.
120.42.C
1.b. - apply information from source
130.166.C
N/A
documents
7.a. - follow oral and written
instructions;
7.b. - develop time management
skills by setting priorities for
completing work as scheduled
7.c. - make decisions using
appropriate accounting concepts;
7.e. - perform accounting procedures
using manual and automated
methods.
TAKS Correlation:
READING
Objective 1: The student will demonstrate a basic understanding of culturally
diverse written texts.
WRITING
Objective 5: The student will produce a piece of writing that demonstrates a
command of the conventions of spelling capitalization, punctuation, grammar,
usage and sentence structure.
Objective 6: The student will demonstrate the ability to revise and proofread to
improve the clarity and effectiveness of a piece of writing
Activity 2.7.6 – Online Banking
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1
Materials, Equipment and Resources:



Textbook
Multimedia presentation software
Word processing software
Teaching Strategies:


Demonstration
Observation
Activity 2.7.6 – Online Banking
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1
Activity Outline:
Have students use the Internet to research Online Banking. Prepare a
presentation or a one-page report on the research. Include the advantages and
disadvantages of using online banking. Cite at least two resources. As one
resource, your students can use a survey of at least 10 people with 5 questions
about online banking or an interview with a banker about the trend toward online
banking.
Assessment:


Observation
Graded Assignment
Quality Feature
Report or presentation thorough
No errors in the report or presentation
Cited the required minimum 2 sources
Completes in a timely manner
Activity 2.7.6 – Online Banking
Score
Copyright © Texas Education Agency, 2011. All rights reserved.
ACCOUNTING 1