Question

Required information Problem 7-1A Special journals, subsidiary ledgers, trial balance-perpetual LO C3, P1, P2 The following information applies to the questions displayed below.) Church Company completes these transactions and events during March of the current year (terms for all its credit sales are 3/10, n/30). Mar. 14 1 Purchased $38,000 of merchandise from Van Industries, invoice dated March 1, terms 3/15, n/30. Sold merchandise on credit to Min Cho, Invoice No. 854, for $15,200 (cost is $7,600). 3 (a) Purchased $1,140 of office supplies on credit from Gabel Company, invoice dated March 3, terms n/10 EOM. 3 (6) Sold merchandise on credit to Linda Witt, Invoice No. 855, for $7,600 (cost is $3,800). Borrowed $72,000 cash from Federal Bank by signing a long-term note payable. Purchased $19,000 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 $3,800 (cost is $1,900). 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. Purchased $31,000 of merchandise from the CD Company, invoice dated March 13, terms 3/10, n/30. (a) Issued Check No. 417, payable to Payroll, in payment of sales salaries expense for the first half of the month, $12,900. Cashed the check and paid the employees. 15 (b) Cash sales for the first half of the month are $60,800 (cost is $48,640). (Cash sales are recorded daily, but are recorded only twice here to reduce repetitive entries.) of store supplies on credit from Gabel Company, invoice dated March 16, terms n/10 EOM. Received a $3,100 credit memorandum from CD Company for the return of unsatisfactory merchandise purchased on March 14. Received a $570 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 $11,400 (cost is $4,560). Sold merchandise on credit to Linda Witt, Invoice No. 858, for $4,560 (cost is $1,824). 31 (a) Issued Check No. 419, payable to Payroll, in payment of sales salaries expense for the last half of the month, $12,900. Cashed the check and paid the employees. 31 (b) Cash sales for the last half of the month are $6 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 $60,000), Z. Church, Capital (March 1 beg. bal. is $60,000) 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

Accounts Receivable Ledger Trial Balance: Debit Cash Credit Cash Disbursment $ 225,482 $ 89,723 Jovita Albany Date Cash receipt Debit Credit Balance $ 135,759 $ 15,960 $ 16,471 $ 1,140 $ 1,660 $ 18,430 Ending Balance $ 135,759 $ 3,800 3,800 Mar 10 Mar 20 Mar 27 3,800 $ $ $ Accounts Receivable $ 11,400 11,400 Debit Credit Cash Accounts Receivable Inventory Office Supplies Store Supplies Office Equipment Accounts Payable Long Term Payable z Church Capital Sales Sales Discount Cost of Goods Sold sales salaries expense Credit Sale $ 42,560 Receipt $ 26,600 Min Cho Date $ 21,230 $ 72,000 $ 60,000 $ 170,240 Debit Credit Balance Ending Balance $ 15,960 $ 15,200 Mar 2 Mar 12 $ $ 15,200 - 15,200 $ 798 $ 107,452 $ 25,800 Inventory Debit Credit Linda Witt Date Debit Credit Balance Total $ 323,470 $ 323,470 Beg Purchase $ $ 60,000 Credit Sale 69,000 Cash sale Mar 17 Discount $ $ $ $ 18,684 88,768 3,100 1,977 $ 7,600 Mar 3 Mar 13 Mar 28 $ 7,600 $ $ $ 7,600 - 4,560 $ 4,560 Ending Balance $ 16,41 Accounts Payable Ledger Debit Credit Office Supplies CD Company Date Mar 14 Mar 17 Mar 23 31,000 Balance $ 31,000 $ 27,900 $ - Debit Credit $ 3,100 $ 27,900 Mar 3 S 1,140 Ending Balance $ 1,140 Debit Credit Gabel Company Date Mar 3 Mar 16 Store Supplies Balance 1,140 $ 1,140 1,660 $ 2,800 Debit Credit Mar 16 $ 1,660 Ending Balance $ 1,660 Debit Spell Supply Date Mar 9 Mar 19 Credit $ Office Equipment 19,000 Balance $ 19,000 $ 18,430 Debit Credit $ 570 Mar 9 $ 19,000 Mar 19 570 Ending Balance $ 18,430 Van Industries

Ending Balance $ 18,430 Debit Credit Van Industries Date Mar 1 Mar 13 Balance 38,000 $ 38,000 $ 38,000 $ 90,800 Debit Cash Disbursment Mar 17 Mar 19 $ $ $ Accounts Payable Credit 65,900 Purchase 3,100 570 Ending Balance Shcedule of AR $ 21,230 11,400 Jovita Albany Min Cho Linda Witt Total Accounts Receivable 4,560 15,960 Long Term Payable Debit Credit $ 72,000 Shcedule of AP Ending Balance $ 72,000 CD Company Gabel Company Spell Supply Van Industries Total Accounts Payable 2,800 18,430 z Church Capital Debit Credit 21,230 Beg $ 60,000 Ending Balance $ 60,000 Debit Sales Credit Credit Sale Cash Sale Ending Balance $ $ $ 42,560 127,680 170,240 Sales Discount Credit Debit Sales Discount $ 798 Ending Balance $ 798 Cost of Goods Sold Credit Debit Credit Sale Cash Sale Ending Balance $ $ $ 18,684 88,768 107,452 sales salaries expense Credit Debit Cash Payment $ 25,800 Ending Balance $ 25,800