CASE STUDY

You work at Connect Skills Real Estate Pty Ltd at 888 Scott Street Epping. Licence #: 1789L

Part of your job is to manage the company's trust account.

You have recently been on an extended holiday, and during your absence, one of your agency partners had been entering the trust account transactions for the agency.

Being that you are ultimately responsible for the trust account, you decide to manually reconcile the trust account entries against the bank statement for April 2021.

Before commencing the task, your partner advises you that three recent trust account transactions have not yet been recorded in the trust account spreadsheet.

You decide to process these before doing your reconciliation. The transactions to be entered are listed in Table #1 (attached to question).

Table #1: Transactions to be entered into the trust account. Read notes section below
Date	Transaction Description
02/04/2021	Ted Johnson has listed his house with the agency to sell. The address is: 44 Hope St, Epping. He has agreed to an advertising campaign. The first payment for the advertising of $350.00 is received on 02/04/2021 by cheque (#3217) for Creditor Invoice #4888. Receipted by W. Rhonda the receptionist. This is for Ted Johnson. Ensure you: Complete the transaction receipt - 'Tab 1' Use the information found in tabs 2 and 3 to fill out the missing details on tab 1 receipts. Notes: The sum in words and end with the word 'only' Record the transaction in the cash book journal receipts. - Tab 2' Record the transaction in the ledger - 'Tab 3'
03/04/2021	Tenant Bill Fredericks pays rent for the property at 47 Robert St of $1,500 by cheque #7642 which was received and receipted by Property Manager, A. Walters. The landlord of 47 Robert St is John Jones. Ensure you: Complete the transaction receipt. Record the transaction in the trust cashbook receipts journal Record the transaction in the ledger for the tenant and then transfer it to the landlord ledger. Please note: Make sure you always enter data for rent into the tenant ledger first and then transfer to the landlord ledger the same day so the tenant ledger balance should be zero balance after that
06/4/2021	Pay Creditor Invoice 01206 ABC Signs $350 CHQ # 1434 for Vendor Johnson's Signs at 44 Hope Street Epping

In reviewing the trust account transactions against the bank statement, you identify five transactions that need review/amendment.

The five transactions are listed in Table #2. (attached to the question)

1. Table #2: Transactions to reviewed and amended.

1. Landlord John Jones owns two properties. See tab 3. Trust Ledgers. The AC is being replaced in property 1 owned by Landlord / Property provider - 47 Roberts Street Epping.
2. Ledger folio LF106a doesn't have enough money on 18/4/21 to pay AAA for the AC work. (rule: no ledger to go into minus balance)
3. The senior property manager PM actioned this and your job is to update the trust data missing: The PM topped up the cash in LF106a by transferring $600 from John Jones property 2 LF107a to pay for the AC on the 18/4/21.
4. Record the transfer of $600.00 from LF107a to LF106a (in the Trust Ledger-Tab 3) to pay for the Air Conditioning expense on the 18/04/21. Also you notice the transfer journal has not been updated so update Tab 2 Transfer Journal 18/4/2021 relating to this transfer from LF107a to LF106a

1. One of BAC Commercial's cheques is dishonoured at the bank. Find the dishonoured payment in the bank statement transaction listing. Record the dishonoured cheque in the ledger in both the landlord records. The date the cheque dishonoured was three days after it was received and banked.

1. Review the receipts written for the month of April by Property Manager, A. Walters. Locate and amend information missing on the receipt.

1. On 30/04/2021, Bill Fredericks of 47 Robert St dropped a $1500.00 rent cheque into the office. A receipt was completed by is missing the date and the cheque number (#7646).
2. Complete the missing information on the receipt.

1. Finish by checking and updating the Trust Account Management Worksheet, then check the 'Trust Account Reconciliation Statement' in tab 4 of the worksheet and fill out the area inREDEither print sign or write your name in there. The date you signed it is the 20^th of May, 2021

1. Complete the Landlord Statement for all rent paid to John Jones 1 for rental property 47 Robert Street Epping for the month of April 2021. LF106a in date order as per the client ledger. The owner's address is 57 Robert Street Epping. 01206 - add the income then the expenses - the agent commission is based on rent received being three thousand for the month. Remember the GST is in the commission payment of 7.7%. no letting, re leasing or statement fee for this client

Note:

'LF' stands for Ledger Folio, and you find these on tab 3 of the spreadsheet

Students note, please answer inRED so the assessor can see your answers