Help Save & Exit Church Company completes these transactions and events during M
ID: 2404982 • Letter: H
Question
Help Save & Exit Church Company completes these transactions and events during March of the current year (terms for all its credit sales are 3/10, n/30). Mar. 1 Purchased $35,000 of merchandise from Van Industries, invoice dated March 1, terms 3/15, Sold nerchandise on eredit to Min Cho, Invoice No. 854, for $14,000 (cost is $7,000). 3 (a) Parchased $1,050 of office supplies on eredit from Gabel Company, invoice dated Harch 3, terma n/10 BOM. 3 (b) Sold merchandise on eredit to Linda Mitt, Invoice No. 855, for $7,000 (cost is $3,500). 6 Borroved $72,000 cash from Federal Bank by signing a long-tern note payable Purchased $17,500 of office equipment on credit fron Spell Supply, invoice dated Harch 9, terms n/10 EOM 10 Sold serchandise on credit to Jovita Albany, Invoice No. 856, for $3,500 (cost is $1,750). 12 Received paynent from Min Cho for the March 2 sale less the discount 13 (a) Sent Van Industries Check No. 416 in paynent of the March 1 invoice less the discount. 13 (b) Received paysent from Linda Witt for the Harch 3 sale leas the discount 14 Purchased 33,000 of merehandise from the cD company, invoice dated March 3, terma 3/io, 15 (a) iasued Check No.417, payable to Payroll, in payment of sales salaries expense for the first 15 (b) Cash sales for the first half of the month are $56,000 (cost is $44,800). (Cash sales are 16 Purchased $1,570 of store supplies on eredit tros Gabel Company, invoice dated Kareh 16, half of the month, $12,100. Cashed the check and paid the enployees 17 Received a $3,300 credit menor andun from cb Company for the return of unsatisfactory nerchandise purchased on Narch 14 Received a $525 credit memorandun trom Spell Supply for office equipment received on March 9 19 Received payment fron Jovita Albany for the sale of March 10 less the discount Issued Ceek No. 418 to CD Coepany in Paynent of the invoiee ot xareh 13 the March Sold nezchandise on eredit to Jovita Albany, Invoice No. 857, for $10, 500 feoste is $4,200) Sold serchandise on eredit to Linda witt, Invoice No. 858, for 4,200 (eostis 1,680)- 31 1a1 issued Check No.419, payable to Payrol in paynent of sales salaries expenae for the last half of the sonth, $12,100-Cashed the check and paid the exployees 31 tb) Cash sales for the last half of the month are $61,600 (cost is $36,960 31 te) verify that ancahta inpacting customer and creditor accounts vere posted and that any anounts that should have bren posted as individual anounts to the general ledger aecounta vere posted. Foot and eroastoot the jouznala and make the month-end postings Assume the following ledger account amounts Inventory (March 1 beg. bal. is $64,000). Z. Church, Capital (March 1 beg. bal, is $64,000) and Church Company uses the perpetual inventory system 1 2 of 2 Next > 6 9 0Explanation / Answer
SALES JOURNAL Date Account Debited Invoice Number Accounts Receivable Dr. Sales Cr. Cost of Goods Sold Dr. Inventory Cr. Mar. 2 Min Cho 854 14000 7000 Mar. 3 Linda Witt 855 7000 3500 Mar. 10 Jovita Albany 856 3500 1750 Mar. 27 Jovita Albany 857 10500 4200 Mar. 28 Linda Witt 858 4200 1680 Mar. 31 Totals 39200 18130 PURCHASES JOURNAL Date Account Date of Invoice Terms Accounts Payable Cr. Inventory Dr. Office Supplies Dr. Other Accounts Dr. Mar. 1 Van Industries Mar. 1 3/15, n/30 35000 35000 Mar. 3 Gabel Company Mar. 3 n/10 EOM 1050 1050 Mar. 9 Spell Supply Mar. 9 n/10 EOM 17500 17500 Mar. 14 CD Company Mar. 13 3/10, n/30 33000 33000 Mar. 16 Gabel Company Mar. 16 n/10 EOM 1570 1570 Mar. 31 Totals 88120 68000 1050 19070 CASH RECEIPTS JOURNAL Date Account Credited Cash Dr. Sales Discount Dr. Accounts Receivable Cr. Sales Cr. Other Accounts Cr. Cost of Goods Sold Dr. Inventory Cr. Mar. 6 Note payable 72000 72000 Mar. 12 Min Cho 13580 420 14000 Mar. 13 Linda Witt 6790 210 7000 Mar. 15 Sales 56000 56000 44800 Mar. 20 Jovita Albany 3395 105 3500 Mar. 31 Sales 61600 61600 36960 Mar. 31 Totals 213365 735 24500 117600 72000 81760 CASH DISBURSEMENTS JOURNAL Date Ck. No. Payee Account Debited Cash Cr. Inventory Cr. Other Accounts Dr. Accounts Payable Dr. Mar. 13 416 Van Industries Accounts payable 33950 1050 35000 Mar. 15 417 Payroll Sales salaries expense 12100 12100 Mar. 23 418 CD Company Accounts payable 28809 891 29700 Mar. 31 419 Payroll Sales salaries expense 12100 12100 Mar. 31 Totals 86959 1941 24200 64700 Date General Journal Debit Credit Mar. 17 Accounts payable 3300 Inventory 3300 (To record credit memo for purchase returns) Mar. 19 Accounts payable 525 Office equipment 525 (To record credit memo for equipment returned)
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