The Following Information Is Taken from the Accounting Records of Joudrey

question 18

Essay

The following information is taken from the accounting records of Joudrey Law Firm at December 31, 2014, the firm's year end.
1. The firm has two chequing accounts:
- The general account has a balance of $67,000 after all adjustments and is used to pay for the firm's operating expenses.
- The trust account has a balance of $450,000 and contains funds belonging to clients, which can only be used on behalf of the clients to whom the funds belong.
2. The firm has a savings account balance of $22,400 after recording $90 in December interest revenue.
3. On December 31, a client paid a $1,500 invoice in cash. The office manager did not have time to take the funds to the bank on December 31, so the money was locked in the firm's safe.
4. The senior manager took $400 of the cash from the safe for personal use, and left an "IOU" note. He repaid the cash on January 3, 2015.
5. In the safe there are two post dated cheques from clients totalling $25,000. Both are dated February 28, 2015.
Instructions
Prepare a partial balance sheet for Joudrey Law Firm at December 31 showing how this information should be presented. Assume the firm has no accounts receivable other than those described in the above information.

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Definitions:

Synchronization

The coordination of events to operate a system in unison, ensuring processes are aligned in time for optimized efficiency.

Effective Decision Making

The ability to choose the best course of action among various alternatives based on sound judgement and data analysis.

Digitized Supply Chains

Supply chains that utilize digital technology to enhance visibility, efficiency, and collaboration across all stakeholders.

Efficiency Gains

Improvements that result in increased productivity and effectiveness with less wasted effort or expense.