Church Company completes these transactions and events during March of the curre
ID: 2555533 • Letter: C
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 $36,000 of merchandise from Van Industries, invoice dated March 1, terms 2/15, n/30.
2
Sold merchandise on credit to Min Cho, Invoice No. 854, for $14,400 (cost is $7,200).
3
(a)
Purchased $1,080 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 $7,200 (cost is $3,600).
6
Borrowed $72,000 cash from Federal Bank by signing a long-term note payable.
9
Purchased $18,000 of office equipment on credit from Spell Supply, invoice dated March 9, terms n/10 EOM.
10
Sold merchandise on credit to Jovita Albany, Invoice No. 856, for $3,600 (cost is $1,800).
12
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 $32,000 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, $16,000. Cashed the check and paid the employees.
15
(b)
Cash sales for the first half of the month are $57,600 (cost is $46,080). (Cash sales are recorded daily, but are recorded only twice here to reduce repetitive entries.)
16
Purchased $1,600 of store supplies on credit from Gabel Company, invoice dated March 16, terms n/10 EOM.
17
Received a $3,200 credit memorandum from CD Company for the return of unsatisfactory merchandise purchased on March 14.
19
Received a $540 credit memorandum from Spell Supply for office equipment received on March 9 and returned for credit.
20
Received payment from Jovita Albany for the sale of March 10 less the discount.
23
Issued Check No. 418 to CD Company in payment of the invoice of March 13 less the March 17 return and the discount.
27
Sold merchandise on credit to Jovita Albany, Invoice No. 857, for $10,800 (cost is $4,320).
28
Sold merchandise on credit to Linda Witt, Invoice No. 858, for $4,320 (cost is $1,728).
31
(a)
Issued Check No. 419, payable to Payroll, in payment of sales salaries expense for the last half of the month, $16,000. Cashed the check and paid the employees.
31
(b)
Cash sales for the last half of the month are $63,360 (cost is $38,016).
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 $65,000), Z. Church, Capital (March 1 beg. bal. is $65,000) and Church Company uses the perpetual inventory system.
NERAL LEDGER
Cash
Accounts Receivable
Date
Debit
Credit
Balance
Date
Debit
Credit
Balance
Mar. 31 (a)
Mar. 31 (a)
Mar. 31 (b)
Inventory
Office Supplies
Date
Debit
Credit
Balance
Date
Debit
Credit
Balance
Mar. 01
Mar. 17
Mar. 31 (a)
Store Supplies
Office Equipment
Date
Debit
Credit
Balance
Date
Debit
Credit
Balance
Accounts Payable
Long-Term Notes Payable
Date
Debit
Credit
Balance
Date
Debit
Credit
Balance
Z. Church, Capital
Sales
Date
Debit
Credit
Balance
Date
Debit
Credit
Balance
Mar. 01
Sales Discounts
Cost of Goods Sold
Date
Debit
Credit
Balance
Date
Debit
Credit
Balance
ACCOUNTS RECEIVABLE LEDGER
Sales Salaries Expense
Jovita Albany
Date
Debit
Credit
Balance
Date
Debit
Credit
Balance
Min Cho
Linda Witt
Date
Debit
Credit
Balance
Date
Debit
Credit
Balance
ACCOUNTS PAYABLE LEDGER
CD Company
Gabel Company
Date
Debit
Credit
Balance
Date
Debit
Credit
Balance
Spell Supply
Van Industries
Date
Debit
Credit
Balance
Date
Debit
Credit
Balance
Prepare the March 31 trial balance.
CHURCH COMPANY
Trial Balance
March 31
Debit
Credit
Totals
$0
$0
Prepare the March 31 schedule of accounts receivable.
CHURCH COMPANY
Schedule of Accounts Receivable
March 31
Jovita Albany
Linda Witt
Min Cho
Total accounts receivable
Prepare the March 31 schedule of accounts payable.
CHURCH COMPANY
Schedule of Accounts Payable
March 31
Gabel Company
Spell Supply
Van Industries
CD Company
Total accounts payable
$0
Mar.
1
Purchased $36,000 of merchandise from Van Industries, invoice dated March 1, terms 2/15, n/30.
2
Sold merchandise on credit to Min Cho, Invoice No. 854, for $14,400 (cost is $7,200).
3
(a)
Purchased $1,080 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 $7,200 (cost is $3,600).
6
Borrowed $72,000 cash from Federal Bank by signing a long-term note payable.
9
Purchased $18,000 of office equipment on credit from Spell Supply, invoice dated March 9, terms n/10 EOM.
10
Sold merchandise on credit to Jovita Albany, Invoice No. 856, for $3,600 (cost is $1,800).
12
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 $32,000 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, $16,000. Cashed the check and paid the employees.
15
(b)
Cash sales for the first half of the month are $57,600 (cost is $46,080). (Cash sales are recorded daily, but are recorded only twice here to reduce repetitive entries.)
16
Purchased $1,600 of store supplies on credit from Gabel Company, invoice dated March 16, terms n/10 EOM.
17
Received a $3,200 credit memorandum from CD Company for the return of unsatisfactory merchandise purchased on March 14.
19
Received a $540 credit memorandum from Spell Supply for office equipment received on March 9 and returned for credit.
20
Received payment from Jovita Albany for the sale of March 10 less the discount.
23
Issued Check No. 418 to CD Company in payment of the invoice of March 13 less the March 17 return and the discount.
27
Sold merchandise on credit to Jovita Albany, Invoice No. 857, for $10,800 (cost is $4,320).
28
Sold merchandise on credit to Linda Witt, Invoice No. 858, for $4,320 (cost is $1,728).
31
(a)
Issued Check No. 419, payable to Payroll, in payment of sales salaries expense for the last half of the month, $16,000. Cashed the check and paid the employees.
31
(b)
Cash sales for the last half of the month are $63,360 (cost is $38,016).
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.
Explanation / Answer
Accounts payable Date Debit Credit Balance Mar.31 68540 88680 20140 20140 Accounts Payable Schedule Spell Company 17460 Van Industries 0 CD Company 0 Gabel Company 2680 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 32000 32000 Mar.17 3200 28800 Mar.23 28800 0 0 Gabel Company Date Debit Credit Balance Mar.3 1080 1080 Mar.16 1600 2680 2680 2680 Accounts Receivable Date Debit Credit Balance Mar.31 40320 25200 15120 15120 Accounts Receivable Schedule 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 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 Witt 855 7200 3600 Mar.10 Jovita Albany 856 3600 1800 Mar.27 Jovita Albany 857 10800 4320 Mar.28 Linda Witt 858 4320 1728 40320 18648 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 2/15, 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 2/10, n/30 32000 32000 Mar.16 Gabel Company Mar.16 n/10 EOM 1600 1600 88680 68000 1080 19600 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 14112 288 14400 Mr.13 Linda Wit 7056 144 7200 Mar.15 Sales 57600 57600 46080 Mar.20 Jovita Albany 3528 72 3600 Mar.31 Sales 63360 63360 38016 217656 504 25200 120960 72000 84096 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 .Inds. 35280 720 36000 Mar.15 417 Self Salaries and 16000 16000 wages payable Mar.23 418 CD company CD company 28224 576 28800 Mar.31 419 Self Salaries and 16000 16000 wages payable 95504 1296 32000 64800 General Journal Date Account Debit Credit Mar.6 Cash 72000 Long term note payable 72000 (Borrowed on note payable) Mar.17 Accounts Payable - CD Company 3200 Inventory 3200 (Credit note received for defective material) Mar.19 Accounts Payable - Spell company 540 Office Equipment 540 (Credit note received for defective material) Cash Inventory Date Debit Credit Balance Date Debit Credit Balance Mar.6 72000 72000 Beg.Bal. 62000 62000 Mar.12 14112 86112 Mar.1 36000 98000 Mar.13 35280 50832 Mar.2 7200 90800 Mar.13 7056 57888 Mar.3 3600 87200 Mar.15 16000 41888 Mar.10 1800 85400 Mar.15 57600 99488 Mar.13 720 84680 mar.20 3528 103016 Mar.14 32000 116680 Mar.23 28224 74792 Mar.15 46080 70600 Mar.31 16000 58792 Mar.17 3200 67400 Mar.31 63360 122152 Mar.23 576 66824 Mar.27 4320 62504 Mar.28 1728 60776 Office supplies Mar.31 38016 22760 Date Debit Credit Balance Mar.3 1080 1080 1080 Stores supplies 1080 Date Debit Credit Balance Mar.16 1600 1600 1600
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