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 $40,000 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 $16,000 (cost is $8,000).
		3		(a)		Purchased $1,200 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 $8,000 (cost is $4,000).
		6				Borrowed $72,000 cash from Federal Bank by signing a long-term note payable.
		9				Purchased $20,000 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 $4,000 (cost is $2,000).
		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 $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 payment of sales salaries expense for the first half of the month, $15,200. Cashed the check and paid the employees.
		15		(b)		Cash sales for the first half of the month are $64,000 (cost is $51,200). (Cash sales are recorded daily, but are recorded only twice here to reduce repetitive entries.)
		16				Purchased $1,720 of store supplies on credit from Gabel Company, invoice dated March 16, terms n/10 EOM.
		17				Received a $3,400 credit memorandum from CD Company for the return of unsatisfactory merchandise purchased on March 14.
		19				Received a $600 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 $12,000 (cost is $4,800).
		28				Sold merchandise on credit to Linda Witt, Invoice No. 858, for $4,800 (cost is $1,920).
		31		(a)		Issued Check No. 419, payable to Payroll, in payment of sales salaries expense for the last half of the month, $15,200. Cashed the check and paid the employees.
		31		(b)		Cash sales for the last half of the month are $70,400 (cost is $42,240).
		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 $63,000), Z. Church, Capital (March 1 beg. bal. is $63,000) and Church Company uses the perpetual inventory system.

Post information from the journals in Part 2 to the general ledger and the accounts receivable and accounts payable subsidiary ledgers.

GENERAL LEDGER
Cash					Accounts Receivable
Date	Debit	Credit	Balance		Date	Debit	Credit	Balance
Inventory					Office Supplies
Date	Debit	Credit	Balance		Date	Debit	Credit	Balance
Mar. 01
Store Supplies					Office Equipment
Date	Debit	Credit	Balance		Date	Debit	Credit	Balance
Accounts Payable					Long-Term Notes Payable
Date	Debit	Credit	Balance		Date	Debit	Credit	Balance
Z. Church, Capital					Sales
Date	Debit	Credit	Balance		Date	Debit	Credit	Balance
Mar. 01
Sales Discounts					Cost of Goods Sold
Date	Debit	Credit	Balance		Date	Debit	Credit	Balance
					ACCOUNTS RECEIVABLE LEDGER
Sales Salaries Expense					Jovita Albany
Date	Debit	Credit	Balance		Date	Debit	Credit	Balance
Min Cho					Linda Witt
Date	Debit	Credit	Balance		Date	Debit	Credit	Balance
ACCOUNTS PAYABLE LEDGER
CD Company					Gabel Company
Date	Debit	Credit	Balance		Date	Debit	Credit	Balance
Spell Supply				Van Industries
Date	Debit	Credit	Balance	Date	Debit	Credit	Balance