Problem 7-1A Special journals, subsidiary ledgers, trial balance-perpetual LO C3. P1, P2 The following information applies to the questions displayed below.j 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 $39,000 of merchandise from Van Industries, Involice dated March 1, terms 2/15, n/30 2 Sold merchandise on credit to Min Cho, Involce No. 854, for $15,600 (cost is $7,800). 3 (a) Purchased $1,170 of office supplies on credit from Gabel Company, Involce dated March 3, terms n/10 EOM. 3 (b) Sold merchandise on credit to LInda Witt, Involce No. 855, for $7,800 (cost is $3,900) 6 Borrowed $72,000 cash from Federal Bank by signing a long-term note payable. 9 Purchased $19,500 of office equipment on credit from Spell Supply, invoice dated March 9, terms n/1o EOM. 10 Sold merchandise on credit to Jovita Albany, Invoice No. 856, for $3,900 (cost is $1,950) 2 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 Involce less the discount. 13 (b) Receved payment from Linda Witt for the March 3 sale less the discount. 14 Purchased $26,000 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, $16,200. Cashed the check and pald the employees. 15 (b) Cash sales for the first half of the month are $62,400 (cost is $49,920). (Cash sales are recorded dally, but are recorded only twice here to reduce repetitive entries.) 6 Purchased $1,690 of store supples on credit from Gabel Company, Involce dated March 16, terms n/10 EOM 17 Receved a $2,600 credlt memorandum from CD Company for the return of unsatisfactory merchandise purchased on March 14 19 Receved a $585 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 Involce of March 13 less the March 17 return and the discount 27 Sold merchandise on credit to Jovita Albany. Invoice No. 857, for S11,700 (cost is $4,680). 28 Sold merchandise on credit to Linda Witt, Ivolce No. 858, for $4,680 (cost Is $1,872). 31 (a) Issued Check No. 419, payable to Payroll, in payment of sales salaries expense for the last haif of the month, $16,200. Cashed the check and paid the employees. 31 (b) Cash sales for the last half of the month are $68,640 (cost is $41184). 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 $60,000), Z. Church, Capital (March 1beg. bal. is $60,000) and Church Company uses the perpetual inventory system. References