Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Church Company completes these transactions and events during March of the current year ( terms for all its credit sales are 2 / 1 0

Church Company completes these transactions and events during March of the current year (terms for all its credit sales are 2/10, n/30).
March 1 Purchased $36,000 of merchandise from Van Industries, terms 2/15, n/30.
March 2 Sold merchandise on credit to Min Cho, Invoice Number 854, for $14,400(cost is $7,200).
March 3(a) Purchased $1,080 of office supplies on credit from Gabel Company, terms n/30.
March 3(b) Sold merchandise on credit to Linda Witt, Invoice Number 855, for $7,200(cost is $3,600).
March 6 Borrowed $72,000 cash from Federal Bank by signing a long-term note payable.
March 9 Purchased $18,000 of office equipment on credit from Spell Supply, terms n/30.
March 10 Sold merchandise on credit to Jovita Albany, Invoice Number 856, for $3,600(cost is $1,800).
March 12 Received payment from Min Cho for the March 2 sale less the discount of $288.
March 13(a) Sent Van Industries Check Number 416 in payment of the March 1 invoice less the discount of $720.
March 13(b) Received payment from Linda Witt for the March 3 sale less the discount of $144.
March 14 Purchased $26,000 of merchandise from the CD Company, terms 2/10, n/30.
March 15(a) Issued Check Number 417 for $16,500; payee is Payroll, in payment of sales salaries expense for the first half of the month.
March 15(b) Cash sales for the first half of the month are $57,600(cost is $46,080). These cash sales are recorded in the cash receipts journal on March 15.
March 16 Purchased $1,600 of store supplies on credit from Gabel Company, terms n/30.
March 17 Returned $2,600 of unsatisfactory merchandise purchased on March 14 to CD Company. Church reduces accounts payable by that amount.
March 19 Returned $540 of office equipment purchased on March 9 to Spell Supply. Church reduces accounts payable by that amount.
March 20 Received payment from Jovita Albany for the sale of March 10 less the discount of $72.
March 23 Issued Check Number 418 to CD Company in payment of the March 14 purchase less the March 17 return and the $468 discount.
March 27 Sold merchandise on credit to Jovita Albany, Invoice Number 857, for $10,800(cost is $4,320).
March 28 Sold merchandise on credit to Linda Witt, Invoice Number 858, for $4,320(cost is $1,728).
March 31(a) Issued Check Number 419 for $16,500; payee is Payroll, in payment of sales salaries expense for the last half of the month.
March 31(b) Cash sales for the last half of the month are $63,360(cost is $38,016). These cash sales are recorded in the cash receipts journal on March 31.
March 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 crossfoot the journals and make the month-end postings.
Assume the following ledger account amounts: Inventory (March 1 beginning balance is $64,000), Z. Church, Capital (March 1 beginning balance is $64,000) and Church Company uses the perpetual inventory system.(b) Prepare the March 31 trial balance, schedule of accounts receivable and schedule of accounts payable.
Complete this question by entering your answers in the tabs below.
Prepare the March 31 schedule of accounts payable.
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Theory Contemporary Accounting Issues

Authors: Thomas G. Evans

1st Edition

0324107846, 9780324107845

More Books

Students also viewed these Accounting questions

Question

Is it eyewitness or hearsay evidence?

Answered: 1 week ago