please see attached file
You have your own paralegal practice. You have made entries in your books for the month of October, 2019. Below are your entries in your Trust Receipts Journal, Trust Disbursements Journal, and Clients’ Trust Ledger for the month of October 2019. TRUST RECEIPTS JOURNAL DATE (2019) FUNDS RECEIVED FROM CLIENT AMOUNT METHOD OF PAYMENT PURPOSE Oct. 2 Jack Stein 1 - Jack Stein – landlord and tenant $3,800.00 Cheque Retainer Oct. 3 Dan Smith 2 – Dan Smith – Small Claims Court $4,635.00 Cheque Retainer Oct. 13 Diane Campo 3 – Diane Campo – neighbour dispute $15,000.00 Cheque Retainer Oct. 14 Bad Driver 4 – Jane Ditto – car accident $12,000.00 Bank Draft Retainer Oct. 29 Dan Smith 2 – Dan Smith – Small Claims Court $6,049.00 Cheque Retainer Oct. 30 Jack Stein 1 – Jack Stein – landlord and tenant $4,000.00 Cheque Retainer TRUSTS DISBURSEMENTS JOURNAL DATE (2019) METHOD OF PAYMENT/DOC # PAID TO PURPOSE CLIENT AMOUNT Oct. 4 Cheque #32 Ahmed Accounting Expert Report 2 – Dan Smith $565.00 Oct. 7 Electronic Transfer #1 Paralegal Firm Invoice #1 1 – Jack Stein $576.30 Oct. 12 Cheque #22 Paralegal Firm Invoice #2 2 – Dan Smith $254.25 Oct. 15 Electronic Transfer #3 Paralegal Firm Invoice #3 4 – Jane Ditto $3,028.40 Oct. 15 Cheque #31 Client – return of funds Overpayment 4 – Jane Ditto $8,971.60 Oct. 15 Cheque #41 Minister of Finance Plaintiff’s Claim 3 – Diane Campo $1,525.00 CLIENTS’ TRUST LEDGER CLIENT NO. 1 – JACK STEIN DATE (2019) PURPOSE RECEIPTS DISBURSEMENTS TRUST BALANCE Oct. 2 Retainer $3,800.00 $3,800.00 Oct. 7 Payment of Fees $576.30 $3,223.70 Oct. 30 Retainer $4,000.00 $7,223.70 CLEINT NO. 2 – DAN SMITH DATE (2019) PURPOSE RECEIPTS DISBURSEMENTS TRUST BALANCE Oct. 3 Retainer $4,635.00 $4,635.00 Oct. 4 Payment to Ahmed Accountant $565.00 $4,070.00 Oct. 12 Payment of fees $254.25 $3,815.75 Oct. 29 Retainer $6,049.00 $9,864.75 CLIENT NO. 3 – DIANE CAMPO DATE (2019) PURPOSE RECEIPTS DISBURSEMENTS TRUST BALANCE Oct. 13 Retainer $15,000.00 $15,000.00 Oct. 15 Payment to court $1,525.00 $13,475.00 CLIENT NO. 4 – JANE DITTO DATE (2019) PURPOSE RECEIPTS DISBURSEMENTS TRUST BALANCE Oct. 14 Settlement funds from Bad Driver $12,000.00 $12,000.00 Oct. 15 Payment of fees $3,028.40 $8,971.60 Oct. 15 Remainder returned to client $8,971.60 $0.00 Below is the bank statement for your Mixed Trust Account delivered by Humber Bank, for the month of October, 2019. Opening Balance October 1, 2019$0.00 Total Deposits$35,435.00 Total Withdrawals($14,370.55) Closing Balance, October 31, 2019$21,064.45 DATE DESCRIPTION WITHDRAWALS DEPOSITS BALANCE Oct. 1 Open Acct $ 0.00 Oct. 2 Deposit $ 3,800.00 Oct. 3 Deposit $ 4,635.00 Oct. 7 Electronic Transfer $ 576.30 Oct. 12 Cheque #22 $ 245.25 Oct. 13 Deposit $15,000.00 Oct. 14 Deposit $12,000.00 Oct. 15 Electronic Transfer $3,028.40 Oct. 15 Cheque #31 $8,971.60 Oct. 15 Cheque #41 $1,525.00 Oct. 20 Banking Fee $ 15.00 Oct. 28 Debit Memo $ 9.00 Oct. 30 $21,064.45 Note: Cheque #22, should have cleared at the bank for $254.25 but the bank made a mistake and cleared the cheque for $245.25. The bank corrected this mistake on October 28, 2019 by a bank debit memo of $9.00. This specific error has already been fixed within the month of October and therefore does not need to be accounted for separately in the reconciliation. 1. Complete the following for the month of October 2019. Follow the format in the 2015 paralegal bookkeeping guide provided to you in pdf format previously on Blackboard. a. a Trust Bank Reconciliation, b. a Client Trust Listing, and c. a Trust Comparison. 2. What is the latest date that you can complete this Trust Bank Reconciliation? 3. In regards to the $15,000.00 received by Diane Campo on October 13, 2019; a. What type of account must the funds be deposited into and why? b. What is the deadline for depositing the funds? (Provide explanation including the date - dd/mm/yyyy) 4. Explain in detail the following two concepts and the differences between them: a. What is a Journal? b. What is a Ledger? 5. Outline the steps you should have taken before the issuance of Cheque #31 on Jane Ditto’s file.