Accounting Instructions PRIVATE

James Jones #1234 Any County Attorney 123 Main Anytown 84770

Date 3/5/07

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, provide me with the confirmation statement for both the buy and sell orders of this account, and your check made payable to me. 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 H. Smith c/o PO Box 123 Anytown, Utah non domestic