Church Company completes these transactions and events during March of the current year (terms for all its credit sales are 1/10, n/30). Mar. WN 9 terms 10 1 Purchased $36,000 of merchandise from Van Industries, invoice dated March 1, terms 1/15, n/30. Sold merchandise on credit to Min Cho, Invoice No. 854, for $14,400 (cost is $7,200). 3 (a) Purchased $1,080 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 $7,200 (cost is $3,600). 6 Borrowed $72,000 cash from Federal Bank by signing a long-term note payable. Purchased $18,000 of office equipment on credit from Spell Supply, invoice dated March 9, n/10 EOM. Sold merchandise on credit to Jovita Albany, Invoice No. 856, for $3,600 (cost is $1,800). 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 $28,000 of merchandise from the CD Company, invoice dated March 13, terms 1/10, n/30. 15 (a) Issued Check No. 417, payable to Payroll, in payment of sales salaries expense for the first half of the month, $13,900. Cashed the check and paid the employees. 15 (b) Cash sales for the first half of the month are $57,600 (cost is $46,080). (Cash sales are recorded daily, but are recorded only twice here to reduce repetitive entries.) 16 Purchased $1,600 of store supplies on credit from Gabel Company, invoice dated March 16, terms n/10 EOM. 17 Received a $2,800 credit memorandum from CD Company for the return of unsatisfactory merchandise purchased on March 14. Received a $540 credit memorandum from Spell Supply for office equipment received on March 9 and returned for credit. 20 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. 27 Sold merchandise on credit to Jovita Albany, Invoice No. 857, for $10,800 (cost is $4,320). 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 month, $13,900. Cashed the check and paid the employees. 31 (b) Cash sales for the last half of the month are $63,360 (cost is $38,016). 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. 19 WNN GENERAL LEDGER Cash Accounts Receivable Debit Debit Credit Date Credit Balance Date Mar. 31 (c) Cash Rec. Journal Mar. 31 (c) Cash Disb. Journal Balance 217,908 217,908 88,388 129,520 Inventory Debit Date Credit Date Office Supplies Debit 1,080 Credit Balance 63,000 Mar. 03 (a) Balance 1,080 Mar. 01 Mar. 01 Store Supplies Debit Office Equipment Debit Date Credit Date Credit Balance Balance 1,600 Mar. 16 1,600 Accounts Payable Debit Long-Term Notes Payable Debit Credit Date Credit Balance Date 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 ACCOUNTS RECEIVABLE LEDGER Date Credit Date Sales Salaries Expense Debit 13,900 17,700 Jovita Albany Debit 3,600 Credit Mar. 15 (a) Mar. 31 (a) Balance 13,900 Mar. 10 31,600 Mar. 20 Mar. 27 Balance 3,600 0 10,000 3,600 10,000 Min Cho Debit 14,400 Linda Witt Debit Date Credit Date Credit Mar. 02 7,200 Mar. 12 Balance 7,200 7,344 14,400 Balance 14,400 E Mar. 03 (b) 14,112 Mar. 13 (b) 0 Mar 13 (b) Mar. 27 288 14,112 144 7,056 ACCOUNTS PAYABLE LEDGER CD Company Debit Credit 26,000 Gabel Company Debit Date Balance Date Credit Mar. 14 Mar. 17 1,000 1,600 Balance 1,000 2,600 26,000 Mar. 03 (a) Mar. 16 23,400 468 Mar. 23 2,600 22,932 Mar. 23 Spell Supply Debit Van Industries Debit Date Date Credit 18,000 Credit 36,000 Mar. 09 Mar. 19 Balance 18,000 Mar. 01 17,460 Mar. 13 (a) Mar. 13 (a) Balance 36,000 35,280 540 720 35,280 0 Credit CHURCH COMPANY Trial Balance March 31 Debit Cash $ 124,044 Inventory 33,372 Accounts receivable 14,720 Office supplies 1,000 Store supplies 1,600 Office equipment 17,460 Accounts payable Long-term notes payable Z. Church, Capital Sales Sales discounts Cost of goods sold 102,744 Sales salaries expense 35,000 20,060 72,000 63,000 160,480 684 Totals $ 329,940 $ 316,224 CHURCH COMPANY Schedule of Accounts Receivable March 31 Jovita Albany 9,600 Linda Witt 3,480 Min Cho Total accounts receivable $ 13,080 $ CHURCH COMPANY Schedule of Accounts Payable March 31 Gabel Company $ Spell Supply Van Industries CD Company Total accounts payable 2,440 15,520 $ 17,960