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.

in reference to part 2-e:

Answer 1

< Page llo. DELTA Sales - second Journals - The sales journal de all credit sales. . As Account neceivehle Do To sales (credit . sales Journal E Account the vegler cust goed so Inventory brukt NO- Datel Account ateb Invoic 2 march min cho 854 3 meh Linda with 885 10m- Jovita albay 856 27mn Jovita albay 1857 28 Linda will 1858 Tosal to sales acron saler 16000 $ 8000 $ 4000 $ 12000$ 4ows 44800 $ 8000$ 4000 $ 2o $ 4800$ 192 $ 20720$ Purchase Journal supplies equipment PuyART Voins 1200$ pate. Acount (reelted teams Purchne maser/ ran industries (2/15 2/30 urow $ 2:Mcam Grable coo 10 g more spell supply milo alumn CD CO. A 2/10 2/30 3500$ 16.mer Gable co. 2/10 com . Total to puschmacce 1200 20,000/ 2000) 357hey 17208

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