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Accounting Instructions 3

The document provides accounting instructions for closing a bank account and adjusting entries. It requests that the bank 1) close the account immediately, 2) post transactions to journals and ledgers, 3) take trial balances before and after adjustments, 4) prepare financial statements, 5) make closing entries, 6) take a final trial balance, and 7) provide documentation of the account to the customer. It states that failure to close the account will result in an investigation into the bank's use of securities.

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Ely Danel
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569 views1 page

Accounting Instructions 3

The document provides accounting instructions for closing a bank account and adjusting entries. It requests that the bank 1) close the account immediately, 2) post transactions to journals and ledgers, 3) take trial balances before and after adjustments, 4) prepare financial statements, 5) make closing entries, 6) take a final trial balance, and 7) provide documentation of the account to the customer. It states that failure to close the account will result in an investigation into the bank's use of securities.

Uploaded by

Ely Danel
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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Any Bank Date ____________

Attn: Mortgage Department


P.O. Box 111
Raleigh, NC 27675

Accounting Instructions
The enclosures, a notice of my acceptances and written payment plan therewith,
are items eligible for adjusting entries in the ledger of this account (assets and pre-paid
items, etc.) according to the summary of adjustments in intermediate Accounting
Practices. These adjustments include: pre-paid expenses, unearned revenue, accrued
liabilities, accrued assets, and estimated items that include subjective future events.
These items that transfer to a suspense account are in fact, the owners’ equity (the owner
in this case being me, the principal). A transfer of net purchases to cost of goods
(services) sold is in-order, to reduce the balance in this account to zero for closing, post
closing, and reversing entries. Reversing entries are made for pre-paid revenue when the
initial items for which the original amount was entered in revenue or expenses account,
all accrued items should be reversed.
1. Please close this account immediately and enter the transactions of the period
in appropriate journals.
2. Post the journals to the ledger (s).
3. Take an unadjusted trial balance (first trial balance-prior).
4. Prepare adjusting journal entries and post to the ledger(s).
5. Take a trial balance after adjusting (second trial balance-prior).
6. Prepare the financial statements from the second trial balance.
7. Prepare closing journal entries and post to the ledger(s).
8. Take a trial balance after closing (third trial balance).
9. Prepare reversing entries and post to the ledger (my option).

Please provide me with a copy of the journal ledgers and the final statement work
sheets for this account, that you use to determine the unpaid or owing amount, if you
continue to refuse to close this account, and provide me with the confirmation statement
for both the buy and sell orders of this account, and your check made payable to me and
Bank of America, my Fiduciary. Your failure to close this account immediately will
otherwise result in a Federal Agency investigation of your use of securities, etc. Until
then I am…

Very truly yours,

___________________
John Henry Smith
c/o Box 251
Anywhere, Utah 84765
Employer ID# 123456789

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