When Mr. Arnold presents this check for payment, he indorses it, that is, orders it paid, by writing his name on the back. The bank then pays to him the sum named. Men in business usually deposit checks in the bank in which they keep their money, and the bank collects for them, placing the sums collected to their credit. The maker of a check is the one who signs it. The payee is the person to whose order it is payable. The face of a check is the amount named. Name the maker of the above check; the payee; the face. Checks are usually indorsed in one of these ways: (1) Indorsement in blank. Arthur L. Arnold When the person to whom the check is payable simply signs his name on the back, the indorsement is an indorsement in blank. (2) Indorsement in full. Pay to the order of If Mr. Arnold does not choose to draw the money himself, he may transfer the check to any other person, and the latter per son may collect the sum named. This is an indorsement in full. The indorsement of a check should always be written across the back of the left-hand end: A check containing the words "to the order of" or "or order," may be collected by the payee or by any person to whom he orders it paid. A check not containing the above words can be collected only by the person to whom it is payable. WRITTEN EXERCISE Using the name of some local bank, make out slips for the following deposits: 1. Bills, $125; gold, $80; silver, $18.50; checks on Atlantic National Bank. $48.76, $38.21, and $12.07. 2. Bills, $245; silver, $47.40; checks on Union Trust Co., $184.67 and $267.96; checks on Tenth National Bank, $438.75 and $305.12. 3. Bills, $349; silver, $29.75; checks on Farmers' Bank, $69.37; Traders' Bank, $184.78; Merchants' Bank, $283.48; State Trust Co., $107.29. 4. Mr. Richard S. Baxter makes the following deposits in one week: April 15: bills, $79; silver, $17; checks $29.37, $48.56, $5.27, $15.28. April 16: bills, $200; checks, $16.48, $19.37. April 18: bills, $149; gold, $120; silver, $29; checks, $43.75, $12.17. April 20 bills, $47; gold, $60; check, $84.96. April 21 bills, $64; silver, $17; checks, $49.69, $162.57, $59.38. Find the amount deposited for the week. 5. A merchant's balance on hand Sept. 12 was $584.16. What amount had he to his credit after depositing $27.42, $58.27, $86.25, $19.58, $112.68, $8.40, $2.97, and $10.72? 6. For what amount can a merchant draw his check if he adds the following checks to his balance of $251.18: $148, $56.50, $102.84, $96.78, $237.54, $317.29, $208.49? 7. A bank account shows the following record: balance, $86.45; deposits, $27.84, $19.50, $37.75, $58.25, $125.89; withdrawals, $20.15, $134.69, $27.30, $42.18, $40.92. Find the amount still on deposit. 8. Mr. G. H. Atkinson's balance on hand Feb. 12 was $267.93. On Feb. 13 he deposited $38.95, and paid by check a bill for 4 tons of coal @ $7.50, less 4 %; on Feb. 15 he paid a plumber's bill of $28.57, a grocery bill of $19.45, a gas bill for 2400 cubic feet @35 per thousand cubic 35¢ feet; on Feb. 16 he deposited a check for $85.35, and paid an insurance premium of $136. 84. Find his balance on Feb. 17. NOTE. Signing another person's name is forgery, a crime severely punished by law. Therefore, in making out checks and notes in your exercises, you must never sign the name of the supposed maker. You may, however, indicate the signature of the maker in this way: if Charles T. Walker is the maker, sign the note C- T. W Make out checks payable as follows, and show the proper indorsements: 9. Amount, $29.64; payee, John F. Moran; maker, Edward S. Copeland; indorsement in blank. 10. Amount, $127.25; payee, Bernard P. Sykes; maker, Charles R. Hill; indorsement in full to Henry R. Whitman. 11. Amount, $32.50; payee, one of your schoolmates; maker, yourself; indorsement in full to one of your schoolmates. 12. Mr. Harry F. Ellis makes out a check for $24 payable to the order of Edward T. Bingham, who makes it payable to the order of William G. Smith. 13. Mr. Edward T. Fitz makes a check for $50 payable to the order of White & Co. White & Co. transfer it to George R. Jones. Mr. Jones deposits it to his credit in the Traders' Bank. INTEREST Interest is money paid for the use of money. The principal is the sum of money for whose use interest is paid. The rate of interest is the per cent of the principal paid each year for interest. The time is the period on which the principal is at interest. The sum of the principal and the interest is the amount. Problems in interest are problems in percentage with the added element of time. The principal is the whole or the base. The interest is the part or the percentage. The rate of interest paid each year for interest is the rate per cent. 1. Find the interest at 6% on $1284 for 4 months 17 days. $0.02 SOLUTION = interest on $1 for 4 months .0023= interest on $1 for 17 days $0.0223 = interest on $1 for 4 months 17 days $0.022 × 1284 = $29.318 Answer, $29.32. 2. Find the interest at 6% on $3162 for 103 days. SOLUTION The pupil should learn by solving that the interest on any sum of money for two months or sixty days at 6% equals .01 of the principal; for six days .001 of the principal. 103 days = 60 days + 30 days + 10 days + 3 days. Find the interest: 30 days (of interest for 60 days) |