How do you keep track of every transaction in your bank account? Keeping a check register is the best way to monitor your account balances on your own, in case there is some type of issue with your account. A check register lets you know how much money is left in your account so that you don't write a bad check—in other words, writing a check in payment of an item or service when there is no money in your account to cover it.
A check register is a personal note area for writing down everything going in and out of your checking account and for keeping a record of your account balance. This prevents you from overdrawing your account. If you write checks for more than what is in your account, you can be charged fees, your credit score can be affected, and you can possibly face legal issues. Look at the image below to see the different parts of a check register and then click the rows below to see more details about each section.
#1: The first column is for the check number of the check you have written.
#2: Write the date of the transaction in the second column.
#3: Enter a description of the transaction in the third column.
#4: In the fourth column, you will enter the amount of money going out of the account—that is, the amount of the check being written or the amount of any other type of withdrawal.
#5: The fifth column is for deposits, that is, money going into the account. Enter the amount of your deposit transaction in this column.
#6: The sixth column is for the balance. This column is where you keep a running total of withdrawals and deposits so that you will know exactly how much money you have in the account.
Now that you know all the parts of a check register, take a look at Sarah one more time as she enters all of her transactions in her check register.
Using the transactions that Sarah has already made, fill out a check register. Sarah's account balance on January 1st is $500.00. She wrote a check on January 1st to LA Power Company for $225.00. On January 5th, Sarah deposited three checks for $680.00 and withdrew $100.00 in less cash received. What would her check register look like?
Sarah's check register, with columns similar to a table. At the top the columns are labeled check number, date, description, withdrawal, deposit, and balance. The rows are what Sarah completed with four different transactions. The first transaction was listed on January 1, 2021, with a description of beginning balance and the amount is $500. The next transaction is check 0001 on January 1, 2021, to LA Power Company for $225 listed under withdrawal and the balance is $275. Next is a deposit on January 5, 2021, of $680 and a balance of $955. The last transaction is a cash withdrawal on January 5, 2021, for $100 and a balance of $855.
Turn it in!
Now that you know all about a check register, it's time to try it on your own. Complete the final part of the assignment now.
Review the rubric below to ensure that you have completed all parts of the assignment. Once you are certain that the assignment is completed to the best of your ability, please save the document as Checking Account Assignment and submit it to your teacher.
| Points | Description |
|---|---|
| 10 | Checks are completed properly and include date, name of receiver, amount, signature, and memo. |
| 10 | Deposit slip is completed correctly included date, name, and signature. Check numbers and amounts are filled in correctly and all math is correct. |
| 15 | Check register is completed correctly with all necessary information from checks and deposit slip. |
