Church Company completes these transactions and events during March of the current year (terms for all its credit sales are 3/10, n/30).

Mar.

1

Purchased $37,000 of merchandise from Van Industries, invoice dated March 1, terms 3/15, n/30.

2

Sold merchandise on credit to Min Cho, Invoice No. 854, for $14,800 (cost is $7,400).

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).

6

Borrowed $72,000 cash from Federal Bank by signing a long-term note payable.

9

Purchased $18,500 of office equipment on credit from Spell Supply, invoice dated March 9, terms n/10 EOM.

10

Sold merchandise on credit to Jovita Albany, Invoice No. 856, for $3,700 (cost is $1,850).

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 $29,000 of merchandise from the CD Company, invoice dated March 13, terms 3/10, n/30.

15

(a)

Issued Check No. 417, payable to Payroll, in payment of sales salaries expense for the first half of the month, $14,200. Cashed the check and paid the employees.

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 recorded only twice here to reduce repetitive entries.)

16

Purchased $1,630 of store supplies on credit from Gabel Company, invoice dated March 16, terms n/10 EOM.

17

Received a $2,900 credit memorandum from CD Company for the return of unsatisfactory merchandise purchased on March 14.

19

Received a $555 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 $11,100 (cost is $4,440).

28

Sold merchandise on credit to Linda Witt, Invoice No. 858, for $4,440 (cost is $1,776).

31

(a)

Issued Check No. 419, payable to Payroll, in payment of sales salaries expense for the last half of the month, $14,200. 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

(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 beg. bal. is $61,000), Z. Church, Capital (March 1 beg. bal. is $61,000) and Church Company uses the perpetual inventory system

Answer for Part 2

Required journals are as prepared below:

Sales Journal
Date	Account Debited	Invoice Number	PR	Account Receivable Dr Sales Cr	Cost of goods Sold Dr Inventory Cr
Mar-02	Min Cho	854		14,800	7,400
Mar-03	Linda Witt	855		7,400	3,700
Mar-10	Jovita albany	856		3,700	1,850
Mar-27	Jovita albany	857		11,100	4,440
Mar-28	Linda Witt	858		4,440	1,776
	Totals			41,440	19,166

Purchase Journal
Date	Account Debited	Invoice Date	Terms	PR	Account Payable	Inventory	Office Supplies	Other account
Mar-01	Van Industries	Mar-01	3/15, n/30		37,000	37,000
Mar-03	Gabel company	Mar-03	n/10 EOM		1,110		1,110
Mar-09	spell Company	Mar-09	n/10 EOM		18,500			18,500
Mar-14	CD Company	Mar-13	3/10, n/30		29,000	29,000
Mar-16	Gabel Company	Mar-16	n/10 EOM		1,630			1,630
Total					87,240	66,000	1,110	20,130

Cash Receipt Journal
Date	Account Credited	Explanation	PR	Cash	Sales Discounts	Account Receivable	Sales	Other accounts	Cost of goods sold inventory
Mar-06	Long term Note payable	Cash borrowed		72,000				72,000
Mar-12	Lin Cho	March 2 sale		14,356	444	14,800
Mar-13	Linda witt	March 3 sale		7,178	222	7,400
Mar-15	Sales	Cash sales		59,200			59,200		47,360
Mar-20	Jovita albany	Mar 10 sale		3,589	111	3,700
Mar-31	Sales	Cash sales		65,120			65,120		39,072
	Totals			2,21,443	777	25,900	1,24,320	72,000	86,432

Cash Disbursement Journal
Date	Check Number	Payee	Account Debited	PR	Cash	Inventory	Other Accounts	Account payable
Mar-13	416	Van Industries	Van Industries		35,890	1110		37,000
Mar-15	417	Payroll	Salaries Expense		14,200		14,200
Mar-23	418	CD Company	CD Company		25,317	783		26,100
Mar-31	419	Payroll	Salaries Expense		14,200		14,200
	Totals				89,607	1,893	28,400	63,100

Date	Particulars	L.F	Amount	Amount
Mar-17	Account payable-CD Company		2,900
	Merchandise inventory			2,900
	(for goods returned)
Mar-19	Account payable-Spell Company		555
	Office equipment			555
	(for equipment returned)

Problem 7-1A Part 3. Need help with part 3

Required:

Post information from the journals in Part 2 to the general ledger and the accounts receivable and accounts payable subsidiary ledgers. Prepare the March 31 trial balance, schedule of accounts receivable and schedule of accounts payable.