[The following information applies to the questions displayed below.] Church Com

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[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 2/10, n/30).

Purchased $43,600 of merchandise from Van Industries, invoice dated March 1, terms 2/15, n/30.

Purchased $1,230 of office supplies on credit from Gabel Company, invoice dated March 3, terms n/10 EOM.

Purchased $21,850 of office equipment on credit from Spell Supply, invoice dated March 9, terms n/10 EOM.

Purchased $32,625 of merchandise from the CD Company, invoice dated March 13, terms 2/10, n/30.

Issued Check No. 417, payable to Payroll, in payment of sales salaries expense for the first half of the month, $18,300. Cashed the check and paid the employees.

Cash sales for the first half of the month are $34,680 (cost is $20,210). (Cash sales are recorded daily, but are recorded only twice here to reduce repetitive entries.)

Purchased $1,770 of store supplies on credit from Gabel Company, invoice dated March 16, terms n/10 EOM.

Received a $2,425 credit memorandum from CD Company for the return of unsatisfactory merchandise purchased on March 14.

Received a $630 credit memorandum from Spell Supply for office equipment received on March 9 and returned for credit.

Issued Check No. 418 to CD Company in payment of the invoice of March 13 less the March 17 return and the discount.

Issued Check No. 419, payable to Payroll, in payment of sales salaries expense for the last half of the month, $18,300. Cashed the check and paid the employees.

Cash sales for the last half of the month are $30,180 (cost is $16,820).

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 $10,000); Z. Church, Capital (March 1 beg. bal. is $10,000) and Church Company uses the perpetual inventory system.

Prepare the March 31 trial balance, schedule of accounts receivable and schedule of accounts payable.

     
     
    

Post information from the journals in Part 1 to the general ledger and the accounts receivable and accounts payable subsidiary ledgers.

Church Company completes these transactions and events during March of the current year (terms for all its credit sales are 2/10, n/30).

Explanation / Answer

1. a.

Church Company

General ledger

Cash A/c

Inventory A/c

Cost of Goods sold

Sales revenue

Office supplies

Store supplies

Office equipment

Sales discount

Purchase discount

Long term Note Payable

Sales salaries expense

Account Payable

Account Receivable

b.Accounts receivable ledger

Jovita Albany

Min Cho

Linda Witt

c. Accounts Payable ledger

CD Company

Gabel company

Van Industries

43,600

0

Spell Supply

2. Curch Company

Trial balance for the year ending 31st March

Schedule of Accounts receivable

Schedule of Accounts Payable

Date Explanation Debit($) Credit($) Balance($) 6-March Note Payable 82,000 82,000 12-March Account Receivable 16,464 98,464 13-March Accounts Payable 42,728 55,736 13-March Account Receivable 9,996 65,732 15-March Sales Salaries expense 18,300 47,432 15-March Slaes revenue 34,680 82,112 20-March Account Receivable 5,488 87,600 23- March Accounts Payable 29,596 58,004 31- March Sales Salaries expense 18,300 39,704 31- March Sales revenue 30,180 69,884

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