Question

Church Company completes these transactions and events during March of the current year (terms for all its credit sales are 2/10, n/30). Mar. 1 Purchased $40,000 of merchandise from Van Industries, invoice dated March 1, terms 2/15, n/30. Sold merchandise on credit to Min Cho, Invoice No. 854, for $16,000 (cost is $8,000). 3 (a) Purchased $1,200 of office supplies on credit from Gabel Company, invoice dated March 3, terms n/10 EOM. 3 (b) Sold merchandise on credit to Linda Witt, Invoice No. 855, for $8,000 (cost is $4,000). Borrowed $72,000 cash from Federal Bank by signing a long-term note payable. Purchased $20,000 of office equipment on credit from Spell Supply, invoice dated March 9, terms n/10 EOM. Sold merchandise on credit to Jovita Albany, Invoice No. 856, for $4,000 (cost is $2,000). Received payment from Min Cho for the March 2 sale less the discount. 13 (a) Sent Van Industries Check No. 416 in payment of the March 1 invoice less the discount. 13 (b) Received payment from Linda Witt for the March 3 sale less the discount. 14 Purchased $35,000 of merchandise from the CD Company, invoice dated March 13, terms 2/10, n/30. 15 (a) Issued Check No. 417, payable to Payroll, in payment of sales salaries expense for the first half of the month, $16,700. Cashed the check and paid the employees. 15 (b) Cash sales for the first half of the month are $64,000 (cost is $51,200). (Cash sales are recorded daily, but are recorded only twice here to reduce repetitive entries.) Purchased $1,720 of store supplies on credit from Gabel Company, invoice dated March 16, terms n/10 EOM. Received a $3,500 credit memorandum from CD Company for the return of unsatisfactory merchandise purchased on March 14. Received a $600 credit memorandum from Spell Supply for office equipment received on March 9 and returned for credit. Received payment from Jovita Albany for the sale of March 10 less the discount. Issued Check No. 418 to CD Company in payment of the invoice of March 13 less the March 17 return and the discount. Sold merchandise on credit to Jovita Albany, Invoice No. 857, for $12,000 (cost is $4,800). Sold merchandise on credit to Linda Witt, Invoice No. 858, for $4,800 (cost is $1,920). 31 (a) Issued Check No. 419, payable to Payroll, in payment of sales salaries expense for the last half of the month, $16,700. Cashed the check and paid the employees. 31 (b) Cash sales for the last half of the month are $70, 400 (cost is $42, 240). 31 (c) Verify that amounts impacting customer and creditor accounts were posted and that any amounts that should have been posted as individual amounts to the general ledger accounts were posted. Foot and crossfoot the journals and make the month-end postings. Assume the following ledger account amounts Inventory (March 1 beg. bal. is $63,000), Z. Church, Capital (March 1 beg. bal. is $63,000) and Church Company uses the perpetual inventory system.

Post information from the journals in Part 2 to the general ledger and the accounts receivable and accounts payable subsidiary ledgers.

Answer 1

Cash
Date	Debit	Credit	Balance
Mar-06	72000		72000
Mar-12	15680		87680
Mar-13	7840		95520
Mar-13		39200	56320
Mar-15	64000		120320
Mar-15		16700	103620
Mar-20	3920		107540
Mar-23		30870	76670
Mar-31	70400		147070
Mar-31		16700	130370

Inventory
Date	Debit	Credit	Balance
Mar-01	40000		40000
Mar-02		8000	32000
Mar-03		4000	28000
Mar-10		2000	26000
Mar-13		800	25200
Mar-14	35000		60200
Mar-15		51200	9000
Mar-17		3500	5500
Mar-23		630	4870
Mar-27		4800	70
Mar-31		42240	-42170

Office Supplies
Date	Debit	Credit	Balance
Mar-03	1200		1200

Store Supplies
Date	Debit	Credit	Balance
Mar-15	1720		1720

Office Equipment
Date	Debit	Credit	Balance
Mar-09	20000		20000
Mar-19		600	19400

Long Term Notes Payable
Date	Debit	Credit	Balance
Mar-06		72000	72000

Z.Church Capital
Date	Debit	Credit	Balance

Sales
Date	Debit	Credit	Balance
Mar-02		16000	16000
Mar-03		8000	24000
Mar-10		4000	28000
Mar-15		64000	92000
Mar-27		12000	104000
Mar-28		4800	108800
Mar-31		70400	179200

Sales Discount
Date	Debit	Credit	Balance
Mar-12	320		320
Mar-13	160		480
Mar-20	80		560

Cost of Goods Sold
Date	Debit	Credit	Balance
Mar-02	8000		8000
Mar-03	4000		12000
Mar-10	2000		14000
Mar-15	51200		65200
Mar-27	4800		70000
Mar-28	1920		71920
Mar-31	42240		114160

Sales Salaries Expenses
Date	Debit	Credit	Balance
Mar-15	16700		16700
Mar-31	16700		33400

Accounts Receivable
Jovita Albany
Date	Debit	Credit	Balance
Mar-10	4000		4000
Mar-20		4000	0
Mar-27	12000		12000

Min Cho
Date	Debit	Credit	Balance
Mar-02	16000		16000
Mar-12		16000	0

Linda Witt
Date	Debit	Credit	Balance
Mar-03	8000		8000
Mar-13		8000	0
Mar-28	4800		4800

Accounts Payable
CD Company
Date	Debit	Credit	Balance
Mar-14		35000	35000
Mar-17	3500		31500
Mar-23	31500		0

Gabel Company
Date	Debit	Credit	Balance
Mar-03		1200	1200
Mar-16		1720	2920

Spell Supply
Date	Debit	Credit	Balance
Mar-09		20000	20000
Mar-19	600		19400

Van Industries
Date	Debit	Credit	Balance
Mar-01		40000	40000
Mar-13	40000		0