Begin Checking

Today we're going to begin working on our virtual checking accounts.  Get your envelopes out and get ready to begin your first months transactions.

Follow the correct procedure for each of the following transactions, including writing checks (if applicable), writing items in the Transaction Register, etc.

• 2/01 - You take a trip to Curl Up & Dye -- a little beauty parlor and barber shop in downtown Kelseyville.  The cost to do your hair (including tax and tip) was $32.  Write a check.
• 2/01 - You receive your first paycheck from Griffith Enterprises which you deposit into your checking account.  Complete a deposit slip and enter the amount in your Register.
• 2/02 - You decide that you need a new pair of shoes for all of the standing and walking you will be doing.  You drop by G-Mart and find a nice pair of shoes.  Rather than write a check you decide to use your Debit Card for the $52.79 total.
• 2/03 - You go to lunch with a few of your colleagues at McTaco King.  Use your Debit Card to pay the $6.42 total.
• 2/04 - Rent is due on the 1st of the month, but it's not late until the 5th.  Write a check for $600 to cover February rent, payable to Shady Acres Apartments.
• 2/06 - The cupboards are looking a little bare and you have a friend coming over for dinner.  You go to the grocery store to stock up on some necessities.  Write a check for $184.69 to Purity Market.
• 2/07 - You receive your Netmoviez bill in the mail.  Write a check for $10.14 to cover it.
• 2/11 - You receive your cell phone bill in the mail.  Although money is running a little low, write a check for $34.71 to American Cellular.
• 2/15 - Thankfully you receive your paycheck today.  Complete a deposit slip and log it in your Register.
• 2/17 - Your electric bill came in.  Write a check for $74.61 to Kelseyville Electric Company.
• 2/19 - You're in need of some more groceries.  You drop by Purity Market and spend $32.17.  Write a check.
• 2/22 - You decide to put away some money for emergencies.  You stop in at the bank and open a Savings account by depositing $250.  Remember to remove the money from Checking in your Register.
• 2/23 - You decide to do some decorating in your apartment.  You stop by G-Mart and buy some wall hangings, dishes, and a house plant.  Write a check for $59.90.
• 2/24 - It's time to pay your car insurance.  Go online to the Chameleon Insurance web site and submit your electronic payment for $118.32.
• 2/25 - You stop on the way to work to get gas.  Use your Debit Card to buy $41.17 in gasoline.
• 2/26 - You and some friends decide to go to Rock & Bowl at Mega Bowling Alley.  Rather than drive back to your regular bank, you stop at an ATM at another bank and withdraw $40 from your checking account.  The bank charges you $2 for this service.
• 2/27 - You have a movie reserved at The FlixBuster.  Write a check for $21.55.
• 2/27 - When you arrive at FlixBuster you discover that they don't take checks.  VOID the check you wrote to FlixBuster and use your Debit Card instead.
• 2/28 - The Wilderness Girls dropped by selling cookies.  You buy three boxes of Minty Goodness at $4.00 per box.  Write a check to cover the cost.
• 2/29 - It's time to pay your monthly Internet bill.  Write a check to InterWebz for $39.49.  While you are there dropping off your payment, the company offers you a discount if you have Automatic Withdrawal from your checking account.  VOID the next check to leave with them and next month you will receive $5 off your bill.
• 2/29 - You stop at the SuperQuickyMart to pick up a gallon of milk.  Use your debit card for the amount of $3.41.
• 3/1 - You receive another paycheck.  Deposit it into your checking account.  Make sure you fill out a Deposit Slip to go with it, then log it in your Check Register.
• 3/2 - Your good friend has asked to move in with you.  You decide that it would really help with the cost of the rent, so you get permission from the landlord.  Your friend gives you a check for $300 for their half of the rent and you write a check for $300 for your half of the rent.  Both checks are made payable to Shady Acres Apartments and cover rent for April.

Begin Banking Simulation

You recently graduated from Kelseyville High School and got hired at Griffith Enterprises in Kelseyville, California as an office assistant producing educational videos and multimedia.  Griffith Enterprises is located at 5480 Main Street, Kelseyville, CA  95451 and the phone number is (707) 279-1234.

Your beginning salary is $2000 per month and you will be paid on the 1st and the 15th of each month.  You will receive your pay in the form of a voucher check which is typically divided with perforations in two parts -- one part being the actual check (the Net Amount of your pay) and the other part being the voucher (or record) of how your pay was calculated.  You typically Deposit the check portion into your bank account and file the voucher away for your records.

In discussing your salary with your new employer, you have learned that the following items will be deducted from your paycheck:

• Federal Income Tax:  Approximately 15% of your income goes to Federal Income Tax.  This can be less or more depending on your situation.  For example, if you are single and make less than $8,500 in a year you may only have to pay 10%... but if you make over $34,500 you may be paying 25-35%.  (And depending on your deductions and credits, you may get some [or all] of that money back in an income tax refund at the beginning of the next year.)
• State Income Tax:  Current Estimates are that California Income Tax is equal to about 9.9%.
• Social Security:  Currently we are paying approximately 4.2% of our pay toward Social Security; a program provided by the Federal Government that includes old age and survivors' insurance, old age assistance, and unemployment protection.  This is sometimes listed as FICA (Federal Insurance Contribution Act) on a voucher [or pay stub].
• Medicare:  Currently charged at 1.45%, Medicare is used to cover medical costs for older people.
• Medical/Dental:  Because you are a new employee, you are not yet eligible to receive medical or dental insurance.  Once you are eligible you will be asked to select from plan options.

Because there is a full-service bank next door, you decide to leave your old bank and set up an account with this closer bank.  Complete a New Account Application for Bank of KHS (download one here) using the following information:

• ACCT #: (leave blank for now)
• Required Signatures: 1
• Account Type: Free Checking
• SSN: (use 123-45-6789)
• Title: Your own full name
• Business or Occupation: Multimedia Production Assistant
• ATM or Debit Card?   Yes
• Internet Banking?   Yes
• Previous Bank:  Clear Lake Savings & Loan: 101 Lakeview Drive, Clearlake, California 95422
• Previous Acct. #: 8675309
• Amount of Deposit: $226.68  (Description: Transfer)
• Type of Personalized Checks:  Regular Free
• No., Style, Color, and Cover:  (leave blank)
• Starting Number:  101

Because we are starting over with a new bank, we will also begin a new Check Register.  Fill out the front of your check register with your information.  We are bringing $226.68 from our previous bank into our new bank, so open the check register and enter that amount in the "Beginning Balance" spot.

One method of keeping track of items in your checkbook is to use one line per transaction.  For our simulation, we will be using two lines per transaction -- the actual transaction on the first line and the balance and additional information on the second (usually shaded) line.