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Problem 7-1A Special journals, subsidiary ledgers, trial balance LO P1, P2, P3, P4

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[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 2/10, n/30).

Mar.		1			Purchased $34,000 of merchandise from Van Industries, terms 2/15, n/30.
		2			Sold merchandise on credit to Min Cho, Invoice No. 854, for $13,600 (cost is $6,800).
		3		(a)	Purchased $1,020 of office supplies on credit from Gabel Company, terms n/30.
		3		(b)	Sold merchandise on credit to Linda Witt, Invoice No. 855, for $6,800 (cost is $3,400).
		6			Borrowed $72,000 cash from Federal Bank by signing a long-term note payable.
		9			Purchased $17,000 of office equipment on credit from Spell Supply, terms n/30.
		10			Sold merchandise on credit to Jovita Albany, Invoice No. 856, for $3,400 (cost is $1,700).
		12			Received payment from Min Cho for the March 2 sale less the discount of $272.
		13		(a)	Sent Van Industries Check No. 416 in payment of the March 1 invoice less the discount of $680.
		13		(b)	Received payment from Linda Witt for the March 3 sale less the discount of $136.
		14			Purchased $31,000 of merchandise from the CD Company, terms 2/10, n/30.
		15		(a)	Issued Check No. 417 for $15,700, payee is Payroll, in payment of sales salaries expense for the first half of the month.
		15		(b)	Cash sales for the first half of the month are $54,400 (cost is $43,520). These cash sales are recorded in the cash receipts journal on March 15.
		16			Purchased $1,540 of store supplies on credit from Gabel Company, terms n/30.
		17			Returned $3,100 of unsatisfactory merchandise purchased on March 14 to CD Company. Church reduces accounts payable by that amount.
		19			Returned $510 of office equipment purchased on March 9 to Spell Supply. Church reduces accounts payable by that amount.
		20			Received payment from Jovita Albany for the sale of March 10 less the discount of $68.
		23			Issued Check No. 418 to CD Company in payment of the March 14 purchase less the March 17 return and the $558 discount.
		27			Sold merchandise on credit to Jovita Albany, Invoice No. 857, for $10,200 (cost is $4,080).
		28			Sold merchandise on credit to Linda Witt, Invoice No. 858, for $4,080 (cost is $1,632).
		31		(a)	Issued Check No. 419 for $15,700, payee is Payroll, in payment of sales salaries expense for the last half of the month.
		31		(b)	Cash sales for the last half of the month are $59,840 (cost is $35,904). These cash sales are recorded in the cash receipts journal on March 31.
		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 $64,000), Z. Church, Capital (March 1 beg. bal. is $64,000) and Church Company uses the perpetual inventory system.

Problem 7-1A Part 3

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

(b) Prepare the March 31 trial balance, schedule of accounts receivable and schedule of accounts payable.

Talleugel an ledgers. GENERAL LEDGER Cash Accounts Receivable Date Debit Credit Balance Date Debit Credit Balance Office Supplies Inventory Debit Date Credit Balance Date Debit Credit Balance Mar. 01 Store Supplies Debit Office Equipment Debit Date Credit Balance Date Credit Balance Accounts Payable Debit Long-Term Notes Payable Debit Credit Date Credit Balance Date Balance CHURCH COMPANY Trial Balance March 31 Debit Credit Totals $ $ 0 $ 0 Prepare the March 31 schedule of accounts receivable CHURCH COMPANY Schedule of Accounts Receivable March 31 Jovita Albany Linda Witt Min Cho Total accounts receivable $ 0 Prepare the March 31 schedule of accounts payab CHURCH COMPANY Schedule of Accounts Payable March 31 Gabel Company Spell Supply Van Industries CD Company Total accounts payable $ 0