Prepare an Escrow Account Checkbook Register and an Operating Account Checkbook Register for your firm, along with a Subsidiary Ledger for each client for the following transactions. You use a computer spreadsheet, a ledger sheet or the ledger templates posted with the assignment.

Record each transaction in the appropriate Checkbook Register. After each client transaction is recorded, transfer it to the appropriate Escrow Account Subsidiary Ledger (also known as Client Ledger Sheet) for the given client, as appropriate. A separate Escrow Account Subsidiary Ledger must be opened for each client. Only ethical transactions are to be completed. Remember the firm is allowed to charge for attorneys fees.

Your law firm opened an Operating Account and an Escrow Account on March 1, of this year with a balance of $0.00 in the escrow account and $5000.00 in the Operating Account. Record the following transactions:

March 2, deposit for $1000.00 from John Rackham regarding Bonny v. Rackham (his divorce case).

March 4, check is written in the amount of $44.00 to the Clerk of the Court in Virginia Beach for Bonny v. Rackham fees.

March 4, the managing partner asks you to withdraw from the Escrow account check the amount of $500.00 to Courthouse Garage because he needs his personal automobile fixed.

March 5, a check is written in the amount of $250.00 to The Royal Fortune Private Investigation Service for John Rackhams divorce case.

March 8, a deposit from Calico Jacks Cupcakes, Inc., for incorporation work, in the amount of $1000.00.

March10, check is written in the amount of $200.00 to the State Corporation Commission for the incorporation fee in the Calico Jacks Cupcakes matter.

March 14, a check is written in the amount of $500.00 in the Calico Jacks Cupcakes matter to your law firm for attorneys fees incurred.

March 14, a check is written to Spring Soirees for a deposit on the staff Spring Fling Gala. The amount is $250.00.

March 15, John Rackham hires you to handle his defense in a criminal matter incurred on the 14th. He was charged with driving a motorboat while under the influence. He gives the firm a $2500 a pure retainer and a $2500 cash advance retainer.

March 18, check is written in the amount of $700.00 for an expert witness fee in the Rackham divorce case.

March 20, deposit from Joshua Rackham (your client, Johns brother) in the Bonny v. Rackham matter, $1000.00.

March 21, a check is written for cash in order to replenish the petty cash drawer. The amount is $50.00.

March 23, check is written in the amount of amount of $100.00 to Copy Max for copying and binding charges for the Calico Jacks Cupcakes incorporation documents.

March 24, check is written in the amount of $500 to your law firm for attorneys fees incurred in Rackham divorce.

March 25, check is written to Dominion Virginia Power for $750.00 for firm electrical expenses.

March 28 the senior partner asks for a check from the Escrow account to pay the $200 deductible to the insurance company for damage to his personal automobile sustained in an accident when he was travelling to court on the Rackham divorce.

March 28, a check is written to the firm for legal services rendered on behalf of Rackham on his BUI case. ($500).

Are there any expenses which should not be charged to the Escrow Account? Are there any which should not be charged to either account? If so, tell which ones and why.