Required information Problem 7-1A Special journals, subsidiary ledgers, trial ba

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 2/10, n/30).

Assume the following ledger account amounts Inventory (March 1 beg. bal. is $62,000), Z. Church, Capital (March 1 beg. bal. is $62,000) and Church Company uses the perpetual inventory system.

Problem 7-1A Part 3

Post information from the journals in Part 2 to the general ledger and the accounts receivable and accounts payable subsidiary ledgers.

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 $27,000 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, $15,800. 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 $2,700 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, $15,800. 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

Journal Entries

Cash Inventory Accounts receivable Date Debit Credit Balance Date Debit Credit Balance Date Debit Credit Balance Mar.6 72000 72000 Beg.Bal. 62000 62000 Mar.2 14400 14400 Mar.12 14112 86112 Mar.1 36000 98000 Mar.3 7200 21600 Mar.13 35280 50832 Mar.2 7200 90800 Mar.10 3600 25200 Mar.13 7056 57888 Mar.3 3600 87200 Mar.12 14400 10800 Mar.15 15800 42088 Mar.10 1800 85400 Mar.13 7200 3600 Mar.15 57600 99688 Mar.13 720 84680 Mar.20 3600 0 mar.20 3528 103216 Mar.14 27000 111680 Mar.27 10800 10800 Mar.23 23814 79402 Mar.15 46080 65600 Mar.28 4320 15120 Mar.31 15800 63602 Mar.17 2700 62900 Mar.31 63360 126962 Mar.23 486 62414 Mar.27 4320 58094 Mar.28 1728 56366 Office equipment Office supplies Mar.31 38016 18350 Date Debit Credit Balance Date Debit Credit Balance Mar.9 18000 18000 Mar.3 1080 1080 Mar.19 540 17460 1080 Stores supplies 17460 1080 Date Debit Credit Balance Accounts payable Mar.16 1600 1600 Zurich capital Date Debit Credit Balance 1600 Date Debit Credit Balance Mar.1 36000 36000 Beg.Bal. 62000 62000 Mar.3 1080 37080 Long term notes payable 62000 Mar.9 18000 55080 Date Debit Credit Balance 62000 Mar.13 36000 19080 Mar.6 72000 72000 62000 Mar.14 27000 46080 72000 Mar.16 1600 47680 72000 Mar.17 2700 44980 Cost of goods sold Mar.19 540 44440 Date Debit Credit Balance Mar.23 24300 20140 Sales discounts Mar.2 7200 7200 Date Debit Credit Balance Mar.3 3600 10800 Mar.12 288 288 Mr.10 1800 12600 Sales Mar.13 144 432 Mar.15 46080 58680 Date Debit Credit Balance Mar.20 72 504 Mar.27 4320 63000 Mar.2 14400 14400 504 Mar.28 1728 64728 Mar.3 7200 21600 Mar.31 38016 102744 Mr.10 3600 25200 Mar.15 57600 82800 Jovita Albany Mar.27 10800 93600 Date Debit Credit Balance Min Cho Mar.28 4320 97920 Mar.10 3600 3600 Date Debit Credit Balance Mar.31 63360 161280 Mar.20 3600 0 Mar.2 14400 14400 Mar.27 10800 10800 Mar.12 14400 0 0 Sales salaries expense Linda Wit Van Industries Date Debit Credit Balance Date Debit Credit Balance Date Debit Credit Balance Mar.15 15800 15800 Mar.3 7200 7200 Mar.1 36000 36000 Mar.31 15800 31600 Mar.13 7200 0 Mar.13 36000 0 Mar.28 4320 4320 0 4320 0 Gabel Company Spell Company CD Company Date Debit Credit Balance Date Debit Credit Balance Date Debit Credit Balance Mar.3 1080 1080 Mar.9 18000 18000 Mar.14 0 27000 27000 Mar.16 1600 2680 Mar.19 540 17460 Mar.17 2700 24300 2680 17460 Mar.23 24300 0 2680 17460 0

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