Problem 7-1A Special journals, subsidiary ledgers, trial balance-perpetual LO C3, P1, P2

3 3 6 9 10 12 Required information Problem 7-1A Special journals, subsidiary ledgers, trial balance-perpetual LO C3, P1, P2 The following information applies to the questions displayed below.] 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, terns 3/15, n/30. 2 Sold merchandise on credit to Man Cho. Invoice No. 854. for $14.800 (cost is $7.400). (a) Purchased $1. 110 of office supplies on credit from Gabel Company, invoice dated Narch 3. terns n/10 BOM. (b) Sold merchandise on credit to Linda Witt, Invoice No. 855, for $7,400 (cost is $3.700). Borrowed $72,000 cash fron Federal Bank by signing a long-tern note payable. Purchased $18.500 of office equipment on credit from Spell Supply. invoice dated March 9, terns n/10 EOM. Sold merchandise on credit to Jovita Albany. Invoice No. 856, for $3,700 (cost is $1,850). Received paynent from Min Cho for the March 2 sale less the discount. 13 (a) Sent Van Industries Check No. 416 in paynent of the March 1 invoice less the discount. 13 (b) Received paynent from Linda Witt for the March 3 sale less the discount. 14 Purchased $34,000 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 paynent of sales salaries expense for the first half of the month. $14.700. Cashed the check and paid the employees. (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.) Purchased $1,630 of store supplies on credit from Gabel Company, invoice dated March 16, terns n/10 BOM. 17 Received a $3.400 credit nenor andun from CD Conpany for the return of unsatisfactory merchandise purchased on March 14. 19 Received a $555 credit nenorandum fron Spell Supply for office equipment received on March 9 and returned for credit. 20 Received paynent 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 paynent of sales salaries expense for the last half of the month. $14,700. 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 (e) Verify that amounts inpacting customer and creditor accounts were posted and that any anounts that should have been posted as individual amounts to the general ledger accounts were posted. Foot and crosstoot 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 15 16 Problem 7-1A Part 3 Post information from the journals in Part 2 to the general ledget and the accounts receivable and accounts payable subsidiary ledgers 3 Answer is not complete GENERAL LEDGER Cash Deble 221 443 Credit Date Credit Accounts Receivable De ex 15540 Balance 221443 126573 Balance 15,546 Mar 31 (c) Cash Roc Journal Mar 31 (c) Purch Journal Mar 31 (al 348703 Date Mar 03 (a) Office Supplies Debit 1.110 Credit Balance 1.110 37 000 Date Mar 01 Mar 01 Mar 02 Mar 03 (6) Mar 10 Mar 13 ) Mar. 14 36 3 7.400 X 3.700 1350 1.110X Balance 65,000 102.000 94.600 90.9 09.050 37940 34000 121.940 Z Church, Capital Debit Date Credh Sales Debit Balance 65.000 Date Mar 01 MA 02 Mar 03) Mar 10 Credit 14.800 7400X 3.700X Balance 14.300 22,200 25.900 Date Credit Date Credit Mar 12 Mar 13 (3) Mar. 20 Sales Discounts Babit 444% 222 1113 Balance 4:14 666 777 Mar 02 Mar 03) Mar 10 Cost of Goods Sold Debit 7,400 3.70083 1.850 Balance 7 400 11.100 12 950 CHURCH COMPANY Trial Balance March 31 Debit Credit $ 126,573 X 15,540 24,872 X 1,110 1,630 17,945 Cash Accounts receivable Inventory Office supplies Store supplies Office equipment Accounts payable Long-term notes payable Z. Church, Capital Sales Sales discounts Cost of goods sold Sales salaries expense 20,685 72,000 65,000 165,760 777 105,598 29,400 Totals $ 323,445 $ 323,445 Accounts Payable Debit Date Credit Balance