Nowadays, most companies use accounting softwares to prepare financial statements. As long as data entry is done right (such as A/R, A/P, Payroll or other general journals), all financial statements will be created and reviewed at the same time.
In those cases where we have to prepare all these statements manually, which one should we prepare first?
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Hi I work for JP Morgan chase . In JP Morgan we use accounting softwares to prepare financial statements all the times.
there are some restriction on making General Journal Entries to Accounts Receivable (A/R) and Accounts Payable (A/P) accounts.
Normally, the preferred way to change the balance in an A/R or A/P
account is by recording transactions, such as customer invoices or
vendor bills. However, sometimes it’s more convenient to make a General
Journal Entry. A common use of General Journal Entries to A/R or A/P
accounts is to set up customer or vendor balances in a new QuickBooks
If you opt to make a General Journal Entry to an A/R or A/P account, such entries are subject to these restrictions:
You can’t use more than 1 A/R or A/P account in a single journal entry
You must enter a customer name for a General Journal Entry to an A/R account and a vendor name for a entry to a A/P account.
When we record a General Journal Entry to an A/R or A/P account, the
General Journal Entry will appear in the transaction list for the
customer or vendor specified in either the Customer Center or Vendor Center – provided that the A/R or A/P account is on the first line of the general journal entry and is therefore the transaction source.
so generally we prepare general journals first.
Please let me know if you need any clarification. I'm always happy to answer your questions.
Jun 14th, 2015
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