Skye, Sands & Watters, P.C. established two bank accounts on September 1 of this past year. One was an escrow account, and the other was an operating account. Determine where the following entries should be posted in their accounting records. Are there any expenses that should not be in either account? Calculate the balance on the operating account, escrow account, and in each of the client’s subsidiary ledgers. I will post the answer in the announcements later this week.

1. On September 1, the firm deposited $10,000 in an account for start-up expenses such as utility bills and payroll.

2. On September 2, Tess Truheart, a client seeking assistance in a divorce matter left a cash advance retainer in the amount of $2500 towards her case.

3. On September 5, a check is written in the amount of $550 as an advance for a private investigator in the Truheart matter.

4. On September 7, Ima Khrook, a criminal defendant pays a case retainer of $5000 towards her criminal case. 5. On September 7, Ima Khrook also pays $2500 as a cash advance retainer towards her defense.

6. On September 8, a check is written in the amount of $50.00 for filing fees in the matter of Truheart v. Truheart.

7. On September 8, a check is written in the amount of $750 towards repair of the firm automobile used as a courier vehicle which broke down on the way to court to file documents in the Truheart case.

8. On September 9, a check is written in the amount of $150 to a private process server in the Truheart matter.

9. On September 15, a check is written for $1000 to the firm for fees earned in the Truheart case.

10. On September 16, a check is written for $750 to an expert in the Khrook case.

11. On September 17, the senior partner requested a check in the amount of $15.00 for dry cleaning a suit that an angry client soiled when he threw a cup of coffee at the attorney.

12. On September 18, a check is written in the amount of $550 to Dominion Power for the firm’s electrical expenses.

Answer rating: 100% (QA)

1 The deposit of 10000 for startup expenses should be posted in the operating account 2 The 2500 cas... View the full answer