Problem 7-1A Part 3

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.		1				Purchased $37,000 of merchandise from Van Industries, invoice dated March 1, terms 2/15, 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 $33,000 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, $16,000. 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 $3,300 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, $16,000. 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 $65,000), Z. Church, Capital (March 1 beg. bal. is $65,000) and Church Company uses the perpetual inventory system.

GENERAL LEDGER Cash Debit 185.367 Credit Date Credit Balance Date Mar 31 (c) Cash Rec Journal Mar 31 (c) Cash Disb Journal Balance 185.367 Accounts Receivable Debit 34.720 9 3003 Mar 31 (c) Sales Journal Mar 31 (c) Cash Rec 34.720 57,930x 127 437 44.020 Journal Inventory Debit Office Supplies Debit Date Credit Balance Date Credit Balance Mar 03 (a) 61,000 61 000 Mar 01 Mar 31 (c) Purch Journal Mar 31 (c) Sales Journal Mar 31 (c) Cash Rec Journal Mar 23 16,058 44942 72.416 27.474) (27.204) Store Supplies Debit 1,450 Cred Date Office Equipment Debit 15,500 Balance 1.450 Credit Balance 15 500 Mar. 16 Mar 09 Accounts Payable Debit Credit Balance Date Date Mar 31 (c) Purch Journal Mar 31 (c) Cash Disb Journal Long-Term Notes Payable Debit Credit 72.000 Balance 72,000 Mar. 06 78,880 27,000 78,880 105,880 Z. Church, Capital Debit Sales Debit Date Credit Credit Balance 64,000 Mar 01 Mar 31 (c) Cash Rec. Mar 31 (C) Cash Disb Journal Date Mar 31 (c) Sales Journal Mar 31 (c) Cash Rec Journal 34,720 104,160 Balance 34.720 138,880 (121 367) Journal 185,3573 57,9303 (179297) Cost of Goods Sold Sales Discounts Debit Date Credit Balance Date Debit Credit Balance Mar 13 (b) 16.058 Mar 31 (c) Sales Journal Mar 31 (C) Cash Rec 16.068 72.416 Mar 20 Jouma 88 474 Credit Date Sales Salaries Expense Debit 15600 15600 Balance 15.500 Date Mar. 15 (a) Mar 31 (c) Cash Rec. Journal ACCOUNTS RECEIVABLE LEDGER Jovita Albany Debit Credit 3.100 9300 3.100 Balance 3.100 31 200 Mar. 10 Mar 27 Mar. 20 12 400 9.300 Min Cho Credit Credit Balance Debit 12.400 Balance 12,400 Linda Witt Debit 6.200 3.720 Mar 02 Date Mar 03 (b) Mar 28 Mar 13 (1) 6.200 9920 6.200 3.720 ACCOUNTS PAYABLE LEDGER CD Company Debit Credit 30,000 27,000 Gabel Company Debit Date Balance 30,000 3.000 Date Mar 03 (a) Credit 930 Balance 930 Mar 14 Mar 23 Spell Supply Debit Van Industries Debit Date Date Credit 30.000 Balance 30.000 Credit 31.000 Balance 31,000 Mar. 09 Mar. 01 CHURCH COMPANY Trial Balance March 31 Debit Credit Trial Balance Schedule of of Schedule of AP AR Prepare the March 31 schedule of accounts re CHURCH COMPANY Schedule of Accounts Receivable March 31 Jovita Albany Linda Witt Min Cho Total accounts receivable Trial Balance Schedule of Schedule of API AR Prepare the March 31 schedule of accounts CHURCH COMPANY Schedule of Accounts Payable March 31 Gabel Company Spell Supply Van Industries CD Company Total accounts payable GENERAL LEDGER Cash Debit 185.367 Credit Date Credit Balance Date Mar 31 (c) Cash Rec Journal Mar 31 (c) Cash Disb Journal Balance 185.367 Accounts Receivable Debit 34.720 9 3003 Mar 31 (c) Sales Journal Mar 31 (c) Cash Rec 34.720 57,930x 127 437 44.020 Journal Inventory Debit Office Supplies Debit Date Credit Balance Date Credit Balance Mar 03 (a) 61,000 61 000 Mar 01 Mar 31 (c) Purch Journal Mar 31 (c) Sales Journal Mar 31 (c) Cash Rec Journal Mar 23 16,058 44942 72.416 27.474) (27.204) Store Supplies Debit 1,450 Cred Date Office Equipment Debit 15,500 Balance 1.450 Credit Balance 15 500 Mar. 16 Mar 09 Accounts Payable Debit Credit Balance Date Date Mar 31 (c) Purch Journal Mar 31 (c) Cash Disb Journal Long-Term Notes Payable Debit Credit 72.000 Balance 72,000 Mar. 06 78,880 27,000 78,880 105,880 Z. Church, Capital Debit Sales Debit Date Credit Credit Balance 64,000 Mar 01 Mar 31 (c) Cash Rec. Mar 31 (C) Cash Disb Journal Date Mar 31 (c) Sales Journal Mar 31 (c) Cash Rec Journal 34,720 104,160 Balance 34.720 138,880 (121 367) Journal 185,3573 57,9303 (179297) Cost of Goods Sold Sales Discounts Debit Date Credit Balance Date Debit Credit Balance Mar 13 (b) 16.058 Mar 31 (c) Sales Journal Mar 31 (C) Cash Rec 16.068 72.416 Mar 20 Jouma 88 474 Credit Date Sales Salaries Expense Debit 15600 15600 Balance 15.500 Date Mar. 15 (a) Mar 31 (c) Cash Rec. Journal ACCOUNTS RECEIVABLE LEDGER Jovita Albany Debit Credit 3.100 9300 3.100 Balance 3.100 31 200 Mar. 10 Mar 27 Mar. 20 12 400 9.300 Min Cho Credit Credit Balance Debit 12.400 Balance 12,400 Linda Witt Debit 6.200 3.720 Mar 02 Date Mar 03 (b) Mar 28 Mar 13 (1) 6.200 9920 6.200 3.720 ACCOUNTS PAYABLE LEDGER CD Company Debit Credit 30,000 27,000 Gabel Company Debit Date Balance 30,000 3.000 Date Mar 03 (a) Credit 930 Balance 930 Mar 14 Mar 23 Spell Supply Debit Van Industries Debit Date Date Credit 30.000 Balance 30.000 Credit 31.000 Balance 31,000 Mar. 09 Mar. 01 CHURCH COMPANY Trial Balance March 31 Debit Credit Trial Balance Schedule of of Schedule of AP AR Prepare the March 31 schedule of accounts re CHURCH COMPANY Schedule of Accounts Receivable March 31 Jovita Albany Linda Witt Min Cho Total accounts receivable Trial Balance Schedule of Schedule of API AR Prepare the March 31 schedule of accounts CHURCH COMPANY Schedule of Accounts Payable March 31 Gabel Company Spell Supply Van Industries CD Company Total accounts payable