Help Save & Exit Submit Problem 7-1A Special journals, subsidiary ledgers, trial

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Help Save & Exit Submit 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 Mar 1 Purchased $36,800 of merchandise fron Van Industries, invoice dated March 1, terms 3/15, n/3 Sold merchandise on credit to Min Cho, Invoice No. 854, for $14,400 (cost is $7,200) 3 (a) Purchased $1,888 of office supplies on credit from Gabel Company, invoice dated 3 (b) Sold merchandise on credit to Linda Witt, Invoice No. 855, for $7,280 (cost is $3,600) March 3, teres n/10 EOM. Borrowed $72,800 cash from Federal Bank by signing a long-term note payable Purchased $18,008 of office equipment on credit from Spell Supply, invoice dated , Invoice No. 856, for $3,600 (cost is $1,808) Received payment from Min Cho for the March 2 sale less the discount in payment of the March 1 invoice less the discount sale less the discount 13 (a) Sent Van Industries Check No. 416 13 (b) Received payment from Linda Witt for the March 3 15 (a) Issued Check No. 15 (b) Cash sales for the first half of the month are $57,600 (cost 16 Purchased $1,6e0 of store supplies on credit from Gabel Compan?y, invoice dated Manch 16, terns n/18 EOM. Purchased $33,880 of merchandise from the CD (c month, $16,200. Cashed the check and paid the employees but Received a $3,388 cred Company, invoice dated Harch 13, terms 3/10, n/38 417, payable to Payroll, in payment of sales salaries expense for the first half of the is $46,e8e). (Cash sales are recorded daily, it memor andum from CD Company for the return of unsatisfactory merchandise purchased sales salaries are recorded only twice here to reduce repetitive entries.) 17 19 20 Received a $54e credit memorandum from Spell Supply for office equipment recelved on March 9 and returned Received payment from Jovita Albany for the sale of March 10 less the discount Sold merchandise on credit to Jovita Albany, Invoice No. 857, for $18,800 (cost is $4,320) 2 Issued Check No. 418 to CD Company in payment of the invoice of March 13 Jess the March 17 return and the 27 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 31 (b) Cash sales for the last half of the month are $63, 366 (cost is 338,016) 31 (c) Verify that anounts impacting customer and creditor accounts were posted and that any amounts that should month, 516,288. Cashed the check and paid the employees have been posted as individual amounts to the general ledger accounts were posted. Foot and cross foot the journals and make the month end postings Assume the following ledger account amounts Inventory (March 1 beg bal is $60,000), Z Church, Capital (March 1 beg. bal is $60.000) and Church Company uses the perpetual inventory system

Explanation / Answer

Church Company General Journal Date Journal Amount (DR) Amount (CR) 1-Mar Mercendise Purchased $         36,000.00 To Accounts Payable $                               36,000.00 (Being Goods Purchased from Van Industries) 2-Mar Accounts Receivable $         14,400.00 To Sales $                               14,400.00 (Being Sales to Min Cho vide Invoice No.854) 2-Mar Cost of goods sold $            7,200.00    To Mercendise Inventory $                                 7,200.00 (Being amount of cost of goods sold to Min Cho) 3-Mar Office Supplies $            1,080.00     To Accounts Payable $                                 1,080.00 (Being amout of office supplies purchases from Gabel Company 3-Mar Accounts Receivable $            7,200.00 To Sales $                                 7,200.00 (Being Sales to Linda Witt vide Invoice No.855) 3-Mar Cost of goods sold $            3,600.00    To Mercendise Inventory $                                 3,600.00 (Being amount of cost of goods sold to Linda Witt) 6-Mar Cash $         72,000.00    To Long term Notes Payable $                               72,000.00 (Being amount borrowed from Federal Bank against long term note payable) 9-Mar Office Equipment $         18,000.00    To Accounts Payable $                               18,000.00 (Being amount of Office Equipment purchased on credit from Spell Supply) 10-Mar Accounts Receivable $            3,600.00 To Sales $                                 3,600.00 (Being Sales to Jovita Albeny vide Invoice No.856) 10-Mar Cost of goods sold $            1,800.00    To Mercendise Inventory $                                 1,800.00 (Being amount of cost of goods sold to Jovita Albeny) 12-Mar Cash=($14400*97%) $         13,968.00 Sales Discount=($14400*3%) $               432.00 To Accounts Receivable $                               14,400.00 (Being Amount received from Min Cho after discount allowed 3%) 13-Mar Accounts Payable $         36,000.00       To Cash=($36000*97%) $                               34,920.00       To Purchase Discount=($36000*3%) $                                 1,080.00 (Being amount of Cheque paid to Van Industries) 13-Mar Cash=($7200*97%) $            6,984.00 Sales Discount=($7200*3%) $               216.00 To Accounts Receivable $                                 7,200.00 (Being Amount received from Linda Witt after discount allowed 2%) 14-Mar Mercendise Purchased $         33,000.00     To Accounts Payable $                               33,000.00 (Being Amount of Mercendise Purchased from CD Company) 15-Mar Sales Salaries $         16,200.00     To Cash $                               16,200.00 (Being amount of sales salaries paid for the first half of the month) 15-Mar Cash $         57,600.00    To Sales $                               57,600.00 (Being Amount of Cash Sales for the first half of month) 15-Mar Cost of goods sold $         46,000.00     To Mercendise Purchase $                               46,000.00 (Being amount of cost of goods sold) 16-Mar Store Supplies $            1,600.00    To Accounts Payable $                                 1,600.00 (Being amount of store supplies from Gabel Company) 17-Mar Accounts Payable $            3,300.00    To Purchase return & allowances $                                 3,300.00 (Being amount of Purchase return to CD Comany) 19-Mar Accounts Payable $               540.00      To Office Equipment $                                     540.00 (Being amount of credit memorandum from Spell Supply) 20-Mar Cash=($3600*97%) $            3,492.00 Sales Discount=($3600*3%) $               108.00 To Accounts Receivable $                                 3,600.00 (Being Amount received from Jovita Albany after discount allowed 2%) 23-Mar Accounts Payable=($33000-$3300) $         29,700.00     To Cash $                               28,809.00      To Purchase Return & Allowances $                                     891.00 (Being Amount of Cash Paid after return & discount) 27-Mar Accounts Receivable $         10,800.00      To Sales $                               10,800.00 (Being amount of Sales to Jovita Albany vide Invoice no.857) 27-Mar Cost of goods sold $            4,320.00      To Mercendise Purchase $                                 4,320.00 (Being amount of cost of goods sold to Jovta Albany) 28-Mar Accounts Receivable $            4,320.00      To Sales $                                 4,320.00 (Being amount of Sales to Linda Witt vide Invoice no.858) 28-Mar Cost of goods sold $            1,728.00      To Mercendise Purchase $                                 1,728.00 (Being amount of cost of goods sold to Linda Witt) 31-Mar Sales Salaries $         16,200.00     To Cash $                               16,200.00 (Being amount of sales salaries paid for the first half of the month) 31-Mar Cash $         63,360.00      To Sales $                               63,360.00 (Being amount of Cash Sales) 31-Mar Cost of goods sold $         38,016.00      To Mercendise Purchase $                               38,016.00 (Being amount of cost of goods sold ) Account Receivable Particular Amount(DR) Particular Amount (CR) To Sales $         14,400.00 By cash $      13,968.00 To Sales $            7,200.00 By Sales Discount $            432.00 To Sales $            3,600.00 By cash $        6,984.00 To Sales $         10,800.00 By Sales Discount $            216.00 To Sales $            4,320.00 By cash $        3,492.00 By Sales Discount $            108.00 By Bal c/d $      15,120.00 Total $         40,320.00 Total $      40,320.00 Account Payable Particular Amount(DR) Particular Amount (CR) To Purchase return and allowances $            3,300.00 By Mercendise Purchased $      36,000.00 To Office Equipment $               540.00 By Office Supplies $        1,080.00 To Cash $         28,809.00 By Office Equipment $      18,000.00 To Purchase discount $               891.00 By Mercendise Purchased $      33,000.00 To Bal C/d $         56,140.00 By Store Supplies $        1,600.00 Total $         89,680.00 Total $      89,680.00 Sales A/c Particular Amount(DR) Particular Amount (CR) To Bal C/d $       161,280.00 By Accounts Receivable $      14,400.00 By Accounts Receivable $        7,200.00 By Accounts Receivable $        3,600.00 By Cash $      57,600.00 By Accounts Receivable $      10,800.00 By Accounts Receivable $        4,320.00 By Cash $      63,360.00 Total $       161,280.00 Total $   161,280.00 Cost of Goods Sold Particular Amount(DR) Particular Amount (CR) To Mercendise Inventory $            7,200.00 By Bal C/d $   116,685.00 To Mercendise Inventory $            3,600.00 To Mercendise Inventory $            1,800.00 To Mercendise Inventory $         46,000.00 To Mercendise Inventory $            4,320.00 To Mercendise Inventory $            1,728.00 To Mercendise Inventory $         38,016.00 Total $       116,685.00 Total $   116,685.00

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