Church Company completes these transactions and events during March of the curre
ID: 2748815 • Letter: C
Question
Church Company completes these transactions and events during March of the current year (terms for all its credit sales are 3/10, n/30).
Purchased $39,000 of merchandise from Van Industries, invoice dated March 1, terms 3/15, n/30.
Purchased $1,170 of office supplies on credit from Gabel Company, invoice dated March 3, terms n/10 EOM.
Purchased $19,500 of office equipment on credit from Spell Supply, invoice dated March 9, terms n/10 EOM.
Purchased $25,000 of merchandise from the CD Company, invoice dated March 13, terms 3/10, n/30.
Issued Check No. 417, payable to Payroll, in payment of sales salaries expense for the first half of the month, $17,300. Cashed the check and paid the employees.
Cash sales for the first half of the month are $62,400 (cost is $49,920). (Cash sales are recorded daily, but are recorded only twice here to reduce repetitive entries.)
Purchased $1,690 of store supplies on credit from Gabel Company, invoice dated March 16, terms n/10 EOM.
Received a $2,500 credit memorandum from CD Company for the return of unsatisfactory merchandise purchased on March 14.
Received a $585 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, $17,300. Cashed the check and paid the employees.
Cash sales for the last half of the month are $68,640 (cost is $41,184).
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 $62,000), Z. Church, Capital (March 1 beg. bal. is $62,000) and Church Company uses the perpetual inventory system.
Enter the transactions in a sales journal.
Enter the transactions in a purchases journal.
Enter the transactions in a cash receipts journal.
Enter the transactions in a cash disbursements journal.
Enter the transactions in a general journal.
Church Company completes these transactions and events during March of the current year (terms for all its credit sales are 3/10, n/30).
Explanation / Answer
2.1
Sales Journal Transactions
2.2
Account
Credited
Accts
Pay.
Cr.
Purchases
Dr.
Store
Supplies
Dr.
Office
Supplies
Dr.
Other Acct
Dr.
2.3
Amount
Credited
Other
Accts
Cr.
Sales
Cr.
Accts
Rec
Cr.
Loan
Cr.
Sales
Discounts
Dr.
Cash
Dr.
S.No. Account Names Debit Credit 1. Accounts Receivable - Min Cho 15600 Sales 15600 2. Accounts Receivable - Jovita Albany 3900 Sales 3900 3. Accounts Receivable - Jovita Albany 11700 Sales 11700 4. Accounts Receivable - Linda Witt 4680 Sales 4680Related Questions
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