Question

Church Company completes these transactions and events during March of the current year (terms for all its credit sales are 2/10, /30). S 2/15, n e Mar. Purchased $34,000 of merchandise from Van Industries, terms 2/15, n/30. 2 Sold merchandise on credit to Min Cho, Invoice No. 854, for $13,600 (cost is $6,800). 3 (a) Purchased $1,020 of office supplies on credit from Gabel Company, terms 'n/30. 3 (b) Sold merchandise on credit to Linda Witt, Invoice No. 855, for $6,800 (cost is $3,400). 6 Borrowed $72,000 cash from Federal Bank by signing a long-term note payable. Purchased $17,000 of office equipment on credit from Spell Supply, terms n/30. 10 Sold merchandise on credit to Jovita Albany, Invoice No. 856, for $3,400 (cost is $1,700). 12 Received payment from Min Cho for the March 2 sale less the discount of $272. 13 (a) Sent Van Industries Check No. 416 in payment of the March 1 invoice less the discount of $680. 13 (b) Received payment from Linda Witt for the March 3 sale less the discount of $136. 14 Purchased $31, of merchandise from the CD Company, terms 2/10, n/30. 15 (a) Issued Check No. 417 for $17, 100, payee is Payroll, in payment of sales salaries expense for the first half of the month. 15 (b) Cash sales for the first half of the month are $54,400 (cost is $43,520). These cash sales are recorded in the cash receipts journal on March 15. 16 Purchased $1,540 of store supplies on credit from Gabel Company, terms n/30. Returned $3,100 of unsatisfactory merchandise purchased on March 14 to CD Company. Church reduces accounts payable by that amount. Returned $10 of office equipment purchased on March 9 to Spell Supply Church reduces accounts payable by that amount. Received payment fron Jovita Albany for the sale of March 10 less the discount of $68. Issued Check No. 418 to CD Company in payment of the March 14 purchase less the March 17 return and the $558 discount. Sold merchandise on credit to Jovita Albany, Invoice No. 857, for $10,200 (cost is $4,080). 28 Sold merchandise on credit to Linda Witt, Invoice No. 858, for $4,080 (cost is $1.632) 31 (a) Issued Check No. 419 for $17, 100, payee is Payroll, in payment of sales salaries expense for the last half of the month. 31 (b) Cash sales for the last half of the month are $59,840 (cost is $35,984). These cash sales are recorded in the cash receipts journal on March 31. 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. ssfoot the journals and make the month-end pe 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. 19 23 27

Answer 1

Final Trial Balance as on 31st March

	Church Company
	Trial Balance as on 31st March
Details	Dr($)	Cr($)
Cash	1,11,602
Account Receivable	14,280
Inventory	26,626
Office Supply	1,020
Store Supply	1,540
Office Equipment	16,490
Account Payable		15,950
Long Term Liability		72,000
Capital		63,000
Sales		1,52,320
Sales Discount	476
Cost of Good Sold	97,036
Payroll	34200
Total	3,03,270	3,03,270

All supporting Workings :

Sales Journal
Date	Account Debited	Invoice No	Account Receivable -Dr/Sales Cr($)	Cost of goods sold-Dr/Inventory Cr($)
2nd march	Min Co	854	13,600	6,800
3rd march	Linda Wtt	855	6,800	3,400
10th march	Jovita	856	3,400	1,700
27th march	Jovita	857	10,200	4,080
28th march	Linda Wtt	858	4,080	1,632
Total			38,080	17,612

Purchase Journal
Date	Account	Date of Invoice	Terms	Account Payable (Cr)-$	Inventory (dr)-$	Office Supply(Dr)$	Other account (Dr)-$
1st march	Van Industries	1st march	2/15,n/30	34,000	34,000
3rd march	Gabel Co	3rd march	n/30	1,020		1,020
9th march	Spell Supply	9th march	n/30	17,000			17,000
14th march	CD Co	14th march	2/10,n/30	31,000	31,000
16th march	Gabel Co	16th march	n/30	1,540		1,540
31st march- Total				84,560	65,000	2,560	17,000

Cash Receipt Journal
Date	Account Credited	Cash Dr($)	Sales Discount Dr($)	Account Receivable Cr($)	Sales Cr($)	Other Asset Cr($)	Cost of goods sold-Dr/Inventory Cr($)
6th march	Long Term Liability	72000				72,000
12th march	Min Co	13,328	272	13,600
13th march	Linda Wtt	6,664	136	6,800
15th march	Cash Sale	54400			54,400		43520
20th march	Jovita	3,332	68	3,400
31st march	Cash Sale	59840			59,840		35904
31st march- Total		2,09,564	476	23,800	1,14,240	72,000	79,424

Cash Payment Journal
Date	Ck No	Payes	Account debited	Cash Cr($)	Inventory Cr($)	Other Accounts Dr($)	Account Payable -Dr($)
13th march	416	Van Industries	Van Industries	33,320	680		34,000
15th march	417	Payroll		17,100		17,100
23rd march	418	CD Co		30,442	558		31,000
31st march	419	Payroll		17,100		17,100
31st march- Total				97,962	1,238	34,200	65,000

Cash
date	Debit ($)	Credit ($)	Balance($)
31st march	2,09,564	97,962	1,11,602

- Debit - Cash receipt ( as mentioned above - date wise ) / Credit - Cash payment

Account Receivable
date	Debit ($)	Credit ($)	Balance($)
31st march	38,080	23,800	14,280

Debit - match with Sales Journal and Credit - Match with cash Receipt

Inventory
date	Debit ($)	Credit ($)	Balance($)
01st March ( Start)			63,000
31st march		1,238	61,762
31st march		17,612	44,150
17th march		3100	41,050
31st march	65,000	0	1,06,050
31st march		79,424	26,626

All the above number matched with Sales Journal , Cash receipt, Payment , Purchase journal

Office Supplies
date	Debit ($)	Credit ($)	Balance($)
3rd march	1,020	-	1,020
Store Supplies
16th march	1,540		1,540
Office Equipment
date	Debit ($)	Credit ($)	Balance($)
9th march	17,000	-	17,000
19th march		510	16,490

Account Payable
date	Debit ($)	Credit ($)	Balance($)
17th march	3100		-3100
19th march	510		-510
31st march	65,000	84,560	15,950
Sales
date	Debit ($)	Credit ($)	Balance($)
31st march		38,080	38,080
31st march		1,14,240	1,52,320

Please check date wise balance updated and match with with detailed workings as calculated above - Sales , Purchase , cash receipt , Cash payment , return of goods - also mentioned in the Question

Cost Of goods sold
date	Debit ($)	Credit ($)	Balance($)
31st march	17,612		17,612
31st march	79,424		97,036

Account receivable Ledger Bal
	Min Co				Linda Wtt				Jovita
date	Debit ($)	Credit ($)	Balance($)	date	Debit ($)	Credit ($)	Balance($)	date	Debit ($)	Credit ($)	Balance($)
02nd march	13,600		13,600	3rd march	6,800		6,800	10th march	3,400		3,400
12th march		13,600	-	13th march		6,800	-	20th march	-	3,400	-
				28th march	4,080		4,080	27th march	10,200	-	10,200

All the above balances are connected with Sales Journal + cash receipt exercise ( in details )

CD Co				Van Industries				Gabel Co				Spell Supply
date	Debit ($)	Credit ($)	Balance($)	date	Debit ($)	Credit ($)	Balance($)	date	Debit ($)	Credit ($)	Balance($)	date	Debit ($)	Credit ($)	Balance($)
14th march	-	31,000	31,000	1st march		34,000	34,000	3rd march		1020	1,020	9th march		17000	17,000
23rd march	31,000	-	-	13th march	34000		-	16th march		1,540	2,560	19th march	510		16,490
17th march	3100		3,100

All the above data based on Purchase Journal and Cash payment details , Return date mentioned ( like 19th March) - amount mentioned in the Question.