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

ID: 2557949 • Letter: R

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 belowj Church Company completes these transactions and events during March of the current year (terms for all its credit sales are 2/10, n/30) Purchased $37,000 of merchandise fr? Van Industries, invoice dated March 1, terms 2/ 15, n/30 Sold merchandise on credit to Min Cho, Invoice No. 854, for $14,800 (cost is $7, 400) ar 3 (a) Purchased $1, 110 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, 400 (cost is $3,700) Borrowed $72, 000 cash from Federal Bank by siming a long-term note payable Purchased $18,500 of office equipment on credit from Spell Supply, invoice dated March 9, terms n/10 EOIL Sold merchandise on credit to Jovita Albany, Invoice No. 856, for $3, 700 (cost is $1, 850) 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 di scount 13 (b) Received payment from Linda Witt for the March 3 sale less the discount 15 (a) Issued Check No. 417, payable to Payroll, in payment of sales salaries expense for the first half of the month 15 (b) Cash sales for the first half of the month are $59, 200 (cost is $47, 360). (Cash sales are recorded daily, but are Purchased $31,000 of merchandise from the CD Company, invoice dated March 13, terms 2/10, n/30. $13,400. Cashed the check and paid the employees. recorded only twice here to reduce repetitive entries.) Purchased $1,630 of store supplies on credit fr? Gabel Company, invoice dated March 16, terms n/10 EOM. Received a $3,100 credit memorandum from CD Company for the return of unsatisfactory merchandise purchased on March Received a $555 credit memorandum from Spell Supply for office equi?ent received on March 9 and returned for credit. Received payment from Jovita Albany for the sale of March 10 less the discount. Issued Check No. 418 to CD Company in payment of the invoice of March 13 less the March 17 retum and the discount. Sold merchandise on credit to Jovita Albany, Invoice No. 857, for $11,100 (cost is $4, 440 Sold merchandise on credit to Linda Witt, Invoice No. 858, for $4,440 (cost is $1,776) 20 23 28 31 (a) Issued Check No. 419, payable to Payroll, in payment of sales salaries expense for the last half of the month, $13,400. Cashed the check and paid the employees. 31 b Cash sales for the last half of the month are $65,120 (cost is $39, 072) 31 ) Verify that amonts 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

Explanation / Answer

Inventory Account Date Particulars Amount Date Particulars Amount Mar. 1 To Balance c/f        61,000 Mar. 02 By Cost of Goods Sold A/c           7,400 Mar. 1 To Van Industries A/c        37,000 Mar. 03 By Cost of Goods Sold A/c           3,700 Mar. 14 To CD Company A/c        29,000 Mar. 10 By Cost of Goods Sold A/c           1,850 Mar. 13 By Van Industries A/c           1,110 Mar. 15 By Cost of Goods Sold A/c        47,360 Mar. 17 By CD Company A/c           2,900 Mar. 23 By CD Company A/c              783 Mar. 27 By Cost of Goods Sold A/c           4,440 Mar. 28 By Cost of Goods Sold A/c           1,776 Mar. 31 By Cost of Goods Sold A/c        39,072 Mar. 31 By balance c/f        16,609      127,000      127,000 Sales Date Particulars Amount Date Particulars Amount Mar. 02 By Min Cho A/c       14,800 Mar. 03 BY Linda Witt A/c          7,400 Mar. 10 By Jovita Albany A/c          3,700 Mar. 15 By Cash A/c       59,200 Mar. 27 By Jovita Albany A/c       11,100 Mar. 28 BY Linda Witt A/c          4,440 Mar. 31 To balance c/f     165,760 Mar. 31 By Cash A/c       65,120     165,760     165,760 Cost of Goods Sold Date Particulars Amount Date Particulars Amount Mar. 02 To Inventory A/c          7,400 Mar. 03 To Inventory A/c          3,700 Mar. 10 To Inventory A/c          1,850 Mar. 15 To Inventory A/c       47,360 Mar. 27 To Inventory A/c          4,440 Mar. 28 To Inventory A/c          1,776 Mar. 31 To Inventory A/c       39,072 Mar. 31 By balance c/f     105,598     105,598     105,598 Office Supplies A/c Date Particulars Amount Date Particulars Amount Mar. 03 To Gabel Company A/c          1,110 Mar. 31 By balance c/f          1,110          1,110          1,110 Cash A/c Date Particulars Amount Date Particulars Amount Mar. 06 To Other A/c       72,000 Mar. 13 By Van Industries A/c       35,890 Mar. 12 To Min Cho A/c       14,356 Mar. 15 By Other A/c       14,200 Mar. 13 To Linda Witt A/c          7,178 Mar. 23 By CD Company A/c       25,317 Mar. 15 To Sales A/c       59,200 Mar. 31 By Other A/c       14,200 Mar. 19 To Jovita Albany A/c          3,589 Mar. 31 To Sales A/c       65,120 Mar. 31 By balance c/f     131,836     221,443     221,443 Other A/c Date Particulars Amount Date Particulars Amount Mar. 09 To Spell Company A/c       18,500 Mar. 06 By Cash a/c       72,000 Mar. 15 To Cash A/c       14,200 Mar. 19 By Spell Company A/c             555 Mar. 16 To Gabel Company A/c          1,630 Mar. 31 To Cash A/c       14,200 Mar. 31 To Balance c/f       24,025       72,555       72,555 Sales Discount A/c Date Particulars Amount Date Particulars Amount Mar. 12 To Min Cho A/c             444 Mar. 13 To Linda Witt A/c             222 Mar. 20 To Jovita Albany A/c             111 Mar. 31 By balance c/f             777             777             777 Accounts Payable Subsidary Account Van Industries A/c Date Particulars Amount Date Particulars Amount Mar. 13 To Cash a/c       35,890 Mar. 1 By Inventory A/c       37,000 Mar. 13 To Inventory A/c          1,110       37,000       37,000 Gabel Company A/c Date Particulars Amount Date Particulars Amount Mar. 03 By Office Supplies A/c          1,110 Mar. 03 BY Other A/c          1,630 Mar. 31 To Balance c/f          2,740          2,740          2,740 Spell Company A/c Date Particulars Amount Date Particulars Amount Mar. 19 To Other A/c             555 Mar. 09 By Other A/c       18,500 Mar. 31 To Balance c/f       17,945       18,500       18,500 CD Company A/c Date Particulars Amount Date Particulars Amount Mar. 17 To Inventory A/c          2,900 Mar. 14 By Inventory A/c       29,000 Mar. 13 To Cash A/c       25,317 Mar. 13 To Inventory A/c             783       29,000       29,000 Accounts Receivable Subsidary Account Min Cho A/c Date Particulars Amount Date Particulars Amount Mar. 02 To Sales       14,800 Mar. 12 By Cash A/c       14,356 Mar. 12 By Discount A/c             444       14,800       14,800 Linda Witt A/c Date Particulars Amount Date Particulars Amount Mar. 03 To Sales          7,400 Mar. 13 By Cash A/c          7,178 Mar. 28 To Sales          4,440 Mar. 13 By Sales Discount A/c             222 Mar. 31 By balance c/f          4,440       11,840       11,840 Jovita Albany A/c Date Particulars Amount Date Particulars Amount Mar. 10 To Sales          3,700 Mar. 20 By Cash A/c          3,589 Mar. 27 To Sales       11,100 Mar. 20 By Sales Discount A/c             111 Mar. 31 By balance c/f       11,100       14,800       14,800 Trial Balance as on Mar 31 Account Debit   Credit Church Company Capital A/c           61,000 Accounts Payable           20,685 Accounts Receivable A/c           15,540 Cash A/c        131,836 Inventory A/c           16,609 Sales A/c        165,760 Sales Discount A/c                 777 Cost of Goods Sold A/c        105,598 Office Supplies A/c             1,110 Other A/c           24,025 Total        271,470        271,470 Accounts Receivable Schedule Account Balance Min Cho 0 Linda witt            4,440 Jovita Albany          11,100 Total          15,540 Accounts Payable Schedule Account Balance Van Industries 0 Gabel Company             2,740 Spell Company           17,945 CD Company 0 Total           20,685

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