2 10 Church Company completes these transactions and events during March of the current year (terms for all its credit sales are 2/10,n/30). Mar. Purchased $43,600 of merchandise from Van Industries, invoice dated March 1, terms 2/15, n/30. Sold merchandise on credit to Min Cho, Invoice No. 854, for $16,800 (cost is $8,400). 3 (a) Purchased $1,230 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 $10,200 (cost is $5,800). 6 Borrowed $82,000 cash from Federal Bank by signing a long-term note payable. 9 Purchased $21,850 of office equipment on credit from Spell Supply, invoice dated March 9, terms n/10 EOM. Sold merchandise on credit to Jovita Albany, Invoice No. 856, for $5,600 (cost is $2,900). 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 $32,625 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, $18,300. Cashed the check and paid the employees. 15 (b) Cash sales for the first half of the month are $34,680 (cost is $20,210). (Cash sales are recorded daily, but are recorded only twice here to reduce repetitive entries.) Purchased $1,770 of store supplies on credit from Gabel Company, invoice dated March 16, terms n/10 EOM. 17 Received a $2,425 credit memorandum from CD Company for the return of unsatisfactory merchandise purchased on March 14. 19 Received a $630 credit memorandum from Spell Supply for office equipment received on March 9 and returned for credit. 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. Sold merchandise on credit to Jovita Albany, Invoice No. 857, for $14,910 (cost is $7,220). Sold merchandise on credit to Linda Witt, Invoice No. 858, for $4,315 (cost is $3,280). 31 (a) Issued Check No. 419, payable to Payroll, in payment of sales salaries expense for the last half of the month, $18,300. Cashed the check and paid the employees. 31 (b) Cash sales for the last half of the month are $30, 180 (cost is $16,820). 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 cross foot the journals and make the month-end postings. Assume the following ledger account amounts Inventory (March 1 beg. bal. is $10,000); Z. Church, Capital (March 1 beg. bal. is $10,000) and Church Company uses the perpetual inventory system. 16 20 27 28 CASH RECEIPTS JOURNAL Date Account Credited Cash Dr. Sales Discount Dr. Accounts Receivable Sales Cr. Other Accts. Cr. Cr. Cost of Goods Sold Dr. Inventory Cr. Mar. 06 $ 82,000 $ 82,000 16.800 Mar. 12 Mar. 13 Long-term note payable Min Cho Linda Witt Sales Jovita Albany Sales Mar. 15 Mar. 20 Mar. 31 Mar. 31 Totals $ 82,000 $ 0 $ 16,800 $ 0 $82,000 $ CASH DISBURSEMENTS JOURNAL Date Ck.No. Payee Account Debited Cash Cr. Other Accounts Inventory Cr. Accounts Payable Dr. Dr. Mar. 31 Totals $ $ 0 $ 0 $ Check GENERAL LEDGER Cash Debit Accounts Receivable Debit Date Credit Balance Date Credit Balance Inventory Debit Office Supplies Debit Date Credit Balance Date Credit Balance Mar. 01 Store Supplies Debit Office Equipment Debit Date Credit Balance Date Credit Balance Accounts Payable Debit Long-Term Notes Payable Debit Credit Date Credit Balance Dato Balance Z. Church, Capital Debit Sales Debit Date Credit Balance Date Credit Balance Mar. 01 Sales Discounts Debit Cost of Goods Sold Debit Date Credit Balance Date Credit Balance Sales Salaries Expense Debit ACCOUNTS RECEIVABLE LEDGER Jovita Albany Debit Credit Date Credit Balance Date Balance Min Cho Debit Linda Witt Debit Dato Credit Balance Date Credit Balance ACCOUNTS PAYABLE LEDGER CD Company Debit Credit Gabel Company Debit Date Balance Date Credit Balance Spell Supply Debit Van Industries Debit Date Credit Balance Date Credit Balance Trial Balance Schedule of AR Schedule of AP Prepare the March 31 trial balance. CHURCH COMPANY Trial Balance March 31 Debit Credit Totals Trial Balance Schedule of AR Schedule of AP Prepare the March 31 schedule of accounts receivable. CHURCH COMPANY Schedule of Accounts Receivable March 31 ces Jovita Albany Linda Witt Min Cho Total accounts receivable