· Problem 7-1A Special journals, subsidiary ledg The following information appli

Question

· Problem 7-1A Special journals, subsidiary ledg 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 ers, trial balance-perpetual LO C3, P1. P2 Purchased $36,000 of merchandise from Van Industries Sold merchandise on credit to Min Cho, Invoice No. 854, for $14,4ee ( , invoice dated March 1, teres 3/15, n/30 cost is $7,288) 3 (a) Purchased $1,ese of office supplies on credit fron Gabel Company, invoice dated Harch 3, teres n/18 E0m 3 (b) sold merchandise on credit to Linda witt, Invoice No. 855, for $7,28e (cost is $3,6e0) 9 Purchased $18,e89 of office equipment on credit fron Spell Supply, invoice dated Harch 9, terms n/10 Eom, 13 (a) Sent Van Industries Check No. 416 in payment of the March 1 invoice less the discount $72,880 cash from Federal Bank by signing long-term note payoble. Sold merchandise on credit to Jovita Albany, Invoice No. 856, for $3,600 (cost is $1,aee) 13 (b) Received payment from inda Witt for the March 3 sale less the discount 15 (a) Issued Check No. 417, payable to Payroll, in payment of sales salaries expense for the first half of the 15 (b) Cash sales for the first half of the month are $57,600 (cost is $46,880). (Cash sales are recorded daily, 16 Purchased $1,688 of store supplies on credit from Gabel Company, invoice dated March 16, terns n/18 EoM Received payment from Min Cho for the March 2 sale less the discount Purchased $33,00e of merchandise from the CD Company, invoice dated March 13, terms 3/16, n/3e month, $16,288. Cashed the check and paid the employees but are recorded only twice here to reduce repetitive entries.) 17 Received a $3,3ee credit menorandun from CD Company for the return of unsatisfactory merchandise purchased 19 Received a 5548 credit menorandun from Spell Supply for office equipment received on Harch 9 and returned 2 Received payment from Jovite Albany for the sale of March 1e less the discount Issued Check No. 418 to CD Company in payment of the invoice of March 13 Less the Harch 17 return and the sold nerchandise on credit to Jovite Albany, Invoice No. 857, for $18,809 (cost is $4,32) 28 Sold merchandise on credit to Linda litt, I'velce No. 858· tor (costa 31 (a) issued Check No. 419, payable to Payroll, in payment of sales salaries expense for the last half of the month, $16,280. Cashed the check and paid the employees 31 (b) Cash sales for the last half of the month are $63,368 (cost is i38,e16) 31 (c) Verify that amounts impacting customer and creditor accounts were posted and that any anounts that should have been posted as individual anounts 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 s60,000), Z. Church, Capital (March 1 beg bai is $60,000) and Church Company uses the perpetual inventory system.

Explanation / Answer

SALES JOURNAL Date Account Invoice Accounts Cost of goods Debited Number Receivable Dr Sold Dr Sales Cr Inventory Cr Mar.2 Min.Cho 854 14400 7200 Mar.3 Linda Wittn 855 7200 3600 Mar.10 Jovita Albany 856 3600 1800 Mar.27 Jovita Albany 857 10800 4320 Mar.28 Linda Wittn 858 4320 1728 Total 40320 18648 Cash Receipts Journal Date Account Cash Dr Cash Accounts Sales Cr Other Cost of goods Credited Discount Dr Receivable Cr Account Cr sold Dr Inventory Cr Mar.6 Long term note payable 72000 72000 Mar.12 Min Cho 13968 432 14400 Mar.13 Linda Wit 6984 216 7200 Mar.15 Sales 57600 57600 46080 Mar.20 Jovita Albany 3492 108 3600 Mar.31 Sales 63360 63360 38016 Total 217404 756 25200 120960 72000 84096 Accounts receivable Date Debit Credit Balance Mar.31 40320 25200 15120 15120 CHRUCH COMPANY Schedule of Accounts Receivable Mar-31 Customer Amount Jovita Albany 10800 Linda Witt 4320 Minh Cho 0 Total 15120 Jovita Albany Date Debit Credit Balance Mar.10 3600 3600 Mar.20 3600 0 Mar.27 10800 10800 Linda Wit Date Debit Credit Balance Mar.3 7200 7200 Mar.13 7200 0 Mar.28 4320 4320 4320 Min Cho Date Debit Credit Balance Mar.2 14400 14400 Mar.12 14400 0 0 PURCHASE JOURNAL Date Account Date of Terms Accounts Inventory Office Other Invoice Payable Cr Dr Supplies Dr Accounts Dr Mar.1 Van Inddustries Mar.1 1/15, n/30 36000 36000 Mar.3 Gabel Company Mar.3 n/10 EOM 1080 1080 Mar.9 Spell Supply Mar.9 n/10 EOM 18000 18000 Mar.14 CD Company Mar.13 1/10, n/30 33000 33000 Mar.16 Gabel Company Mar.16 n/10 EOM 1600 1600 89680 69000 1080 19600 Cash Disbursement Journal Journal Date Ck No. Payee Account Cash Cr Inventory Other Accounts Debited Cr Accounts Dr Payable Dr Mar.13 416 Van Inds. Van Industries 34920 1080 36000 Mar.15 417 Self Salaries and 16200 16200 wages payable Mar.23 418 CD company CD company 28809 891 29700 Mar.31 419 Self Salaries and 16200 16200 wages payable Total 96129 1971 32400 65700 Accounts payable Date Debit Credit Balance Mar.31 69540 89680 20140 Mar.3 20140 CHRUCH COMPANY Schedule of Accounts Payable Mar-31 Supplier Amount Spell Company 17460 Gabel Company 2680 Van Industries 0 CD Company 0 Total 20140 Spell Company Date Debit Credit Balance Mar.9 18000 18000 Mar.19 540 17460 17460 17460 Van Industries Date Debit Credit Balance Mar.1 36000 36000 Mar.13 36000 0 0 0 CD Company Date Debit Credit Balance Mar.14 0 33000 33000 Mar.17 3300 29700 Mar.23 29700 0 0 Gabel Company Date Debit Credit Balance Mar.3 1080 1080 Mar.16 1600 2680 2680 2680 General Journal Date Account Debit Credit Mar.6 Cash 72000 Long term note payable 72000 (Amount borrowed on note payable) Mar.17 Accounts Payable 3300 Inventory 3300 (Credit received on return of goods to CD company) Mar.19 Accounts Payable 540 Office Equipment 540 (Credit received on return of goods to Spell company) Cash Inventory Date Debit Credit Balance Date Debit Credit Balance Mar.6 72000 72000 Beg.Bal. 62000 62000 Mar.12 13968 85968 Mar.1 36000 98000 Mar.13 34920 51048 Mar.2 7200 90800 Mar.13 6984 58032 Mar.3 3600 87200 Mar.15 16200 41832 Mar.10 1800 85400 Mar.15 57600 99432 Mar.13 1080 84320 Mar.20 3492 102924 Mar.14 33000 117320 Mar.23 28809 74115 Mar.15 46080 71240 Mar.31 16200 57915 Mar.17 3300 67940 Mar.31 63360 121275 Mar.23 891 67049 Mar.27 4320 62729 Mar.28 1728 61001 Office supplies Mar.31 38016 22985 Date Debit Credit Balance Mar.3 1080 1080 1080 Stores supplies 1080 Date Debit Credit Balance Mar.16 1600 1600 Sales 1600 Date Debit Credit Balance Mar.2 14400 14400 Long term notes payable Mar.3 7200 21600 -7680 Date Debit Credit Balance Mr.10 3600 25200 Mar.6 72000 72000 Mar.15 57600 82800 72000 Mar.27 10800 93600 72000 Mar.28 4320 97920 Mar.31 63360 161280 Sales discounts Date Debit Credit Balance Mar.12 432 432 Sales salaries expense Mar.13 216 648 Date Debit Credit Balance Mar.20 108 756 Mar.15 16200 16200 756 Mar.31 16200 32400 Office equipment Cost of goods sold Date Debit Credit Balance Date Debit Credit Balance Mar.9 18000 18000 Mar.2 7200 7200 Mar.19 540 17460 Mar.3 3600 10800 17460 Mr.10 1800 12600 Mar.15 46080 58680 Mar.27 4320 63000 Mar.28 1728 64728 Mar.31 38016 102744

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