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 1/10, n/30). Mar. 1 Purchased $38,000 of merchandise from Van Industries, invoice dated March 1, terms 1/15, n/30. Sold merchandise on credit to Min Cho, Invoice No. 854, for $15,200 (cost is $7,600). 3 (a) Purchased $1,140 of office supplies on credit from Gabel Company, invoice dated March 3, terms n/10 EOM. Sold merchandise on credit to Linda Witt, Invoice No. 855, for $7,600 (cost is $3,800). Borrowed $72,000 cash from Federal Bank by signing a long-term note payable. Purchased $19,000 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 $3,800 (cost is $1,900). 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. Purchased $30,000 of merchandise from the CD Company, invoice dated March 13, terms 1/10, n/30. 15 (a) Issued Check No. 417, payable to Payroll, in payment of sales salaries expense for the first half of the month, $12,700. Cashed the check and paid the employees. 15 (b) Cash sales for the first half of the month are $60,800 (cost is $48,640). (Cash sales are recorded daily, but are recorded only twice here to reduce repetitive entries.) Purchased $1,660 of store supplies on credit from Gabel Company, invoice dated March 16, terms n/10 EOM. Received a $3,000 credit memorandum from CD Company for the return of unsatisfactory merchandise purchased on March 14. Received a $570 credit memorandum from Spell Supply for office equipment received on March 9 and returned for credit. Received payment from Jovita Albany for the sale of March 10 less the discount. 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 $11,400 (cost is $4,560). Sold merchandise on credit to Linda Witt, Invoice No. 858, for $4,560 (cost is $1,824). 31 (a) Issued Check No. 419, payable to Payroll, in payment of sales salaries expense for the last half of the month, $12,700. Cashed the check and paid the employees. 31 (b) Cash sales for the last half of the month are $66,880 (cost is $40,128). 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 1 beg. bal. is $60,000) and Church Company uses the perpetual inventory system. GENERAL LEDGER Cash Debit Date Date Credit 89,750 Credit Accounts Receivable Debit 42,560 Balance (89,750) 136,264 Balance 42,560 15,960 226,014 26,600 Inventory Debit Date Credit Balance Date Office Supplies Debit 1,140 Credit Balance 1,140 Mar. 01 Mar. 03 (a) 60,000 68,000 18,684 88,768 3,000 650 60,000 128,000 109,316 20,548 17,548 16,898 Date Store Supplies Debit 1,660 Credit Date Office Equipment Debit 19,000 Balance 1,660 Credit Mar. 16 Mar. 09 Mar. 19 Balance 19,000 18,430 1 570 Date Credit Date Accounts Payable Debit 65,000 3,000 570 Long-Term Notes Payable Debit Credit 72,000 Balance 72,000 Mar. 17 Mar. 19 Balance (65,000) (68,000) (68,570) 21,230 89,800 Z. Church, Capital Debit Sales Debit Date Credit Balance Date Mar. 01 Credit 42,560 127,680 Balance 42,560 170,240 60,000 60,000 Date Sales Discounts Debit 266 Credit Balance Date Credit Cost of Goods Sold Debit 18,684 88,768 266 Balance 18,684 107,452 Date Sales Salaries Expense Debit 25,400 Credit Date ACCOUNTS RECEIVABLE LEDGER Jovita Albany Debit Credit 3,800 3 ,800 11,400 Balance 3,800 Balance 25,400 Mar. 10 Mar. 20 Mar. 27 1. TU 11,400 Min Cho Date Credit Date Debit 15,200 Credit Linda Witt Debit 7,600 Balance 15,200 Balance 7,600 Mar. 02 Mar. 12 15,200 Mar. 03 (a) Mar. 13 (a) Mar. 28 7,600 4 ,560 4,560 Gabel Company Debit Date Date Balance ACCOUNTS PAYABLE LEDGER CD Company Debit Credit 30,000 3,000 27,000 Balance 30,000 27,000 Mar. 14 Mar. 17 Mar. 23 1,140 Credit 1,140 1,660 Mar. 03 (a) Mar. 16 2,800 Spell Supply Debit Van Industries Debit Date Date Credit 19,000 Balance 19,000 18,430 Credit 38,000 Balance 38,000 Mar. 09 Mar. 19 Mar. 01 Mar. 13 (a) 570 38,000 Prepare the March 31 trial balance, schedule of accounts receivable and schedule of accounts payable. Complete this question by entering your answers in the tabs below. Trial Balance Schedule of AR Schedule of AP Prepare the March 31 trial balance. CHURCH COMPANY Trial Balance March 31 Debit Credit Totals $ 0 $ 0 Prepare the March 31 trial balance, schedule of accounts receivable and schedule of accounts payable. Complete this question by entering your answers in the tabs below. Trial Balance Schedule of AR Schedule of AP Prepare the March 31 schedule of accounts receivable. CHURCH COMPANY Schedule of Accounts Receivable March 31 Jovita Albany 11,400 4,560 Linda Witt Min Cho Total accounts receivable 15,960 Prepare the March 31 trial balance, schedule of accounts receivable and schedule of accounts payable. Complete this question by entering your answers in the tabs below. Schedule of Trial Balance AR Schedule of AP Prepare the March 31 schedule of accounts payable. 2,800 CHURCH COMPANY Schedule of Accounts Payable March 31 Gabel Company Spell Supply Van Industries CD Company Total accounts payable 18,430 21,230 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 1/10, n/30). Mar. 1 Purchased $38,000 of merchandise from Van Industries, invoice dated March 1, terms 1/15, n/30. Sold merchandise on credit to Min Cho, Invoice No. 854, for $15,200 (cost is $7,600). 3 (a) Purchased $1,140 of office supplies on credit from Gabel Company, invoice dated March 3, terms n/10 EOM. Sold merchandise on credit to Linda Witt, Invoice No. 855, for $7,600 (cost is $3,800). Borrowed $72,000 cash from Federal Bank by signing a long-term note payable. Purchased $19,000 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 $3,800 (cost is $1,900). 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. Purchased $30,000 of merchandise from the CD Company, invoice dated March 13, terms 1/10, n/30. 15 (a) Issued Check No. 417, payable to Payroll, in payment of sales salaries expense for the first half of the month, $12,700. Cashed the check and paid the employees. 15 (b) Cash sales for the first half of the month are $60,800 (cost is $48,640). (Cash sales are recorded daily, but are recorded only twice here to reduce repetitive entries.) Purchased $1,660 of store supplies on credit from Gabel Company, invoice dated March 16, terms n/10 EOM. Received a $3,000 credit memorandum from CD Company for the return of unsatisfactory merchandise purchased on March 14. Received a $570 credit memorandum from Spell Supply for office equipment received on March 9 and returned for credit. Received payment from Jovita Albany for the sale of March 10 less the discount. 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 $11,400 (cost is $4,560). Sold merchandise on credit to Linda Witt, Invoice No. 858, for $4,560 (cost is $1,824). 31 (a) Issued Check No. 419, payable to Payroll, in payment of sales salaries expense for the last half of the month, $12,700. Cashed the check and paid the employees. 31 (b) Cash sales for the last half of the month are $66,880 (cost is $40,128). 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 1 beg. bal. is $60,000) and Church Company uses the perpetual inventory system. GENERAL LEDGER Cash Debit Date Date Credit 89,750 Credit Accounts Receivable Debit 42,560 Balance (89,750) 136,264 Balance 42,560 15,960 226,014 26,600 Inventory Debit Date Credit Balance Date Office Supplies Debit 1,140 Credit Balance 1,140 Mar. 01 Mar. 03 (a) 60,000 68,000 18,684 88,768 3,000 650 60,000 128,000 109,316 20,548 17,548 16,898 Date Store Supplies Debit 1,660 Credit Date Office Equipment Debit 19,000 Balance 1,660 Credit Mar. 16 Mar. 09 Mar. 19 Balance 19,000 18,430 1 570 Date Credit Date Accounts Payable Debit 65,000 3,000 570 Long-Term Notes Payable Debit Credit 72,000 Balance 72,000 Mar. 17 Mar. 19 Balance (65,000) (68,000) (68,570) 21,230 89,800 Z. Church, Capital Debit Sales Debit Date Credit Balance Date Mar. 01 Credit 42,560 127,680 Balance 42,560 170,240 60,000 60,000 Date Sales Discounts Debit 266 Credit Balance Date Credit Cost of Goods Sold Debit 18,684 88,768 266 Balance 18,684 107,452 Date Sales Salaries Expense Debit 25,400 Credit Date ACCOUNTS RECEIVABLE LEDGER Jovita Albany Debit Credit 3,800 3 ,800 11,400 Balance 3,800 Balance 25,400 Mar. 10 Mar. 20 Mar. 27 1. TU 11,400 Min Cho Date Credit Date Debit 15,200 Credit Linda Witt Debit 7,600 Balance 15,200 Balance 7,600 Mar. 02 Mar. 12 15,200 Mar. 03 (a) Mar. 13 (a) Mar. 28 7,600 4 ,560 4,560 Gabel Company Debit Date Date Balance ACCOUNTS PAYABLE LEDGER CD Company Debit Credit 30,000 3,000 27,000 Balance 30,000 27,000 Mar. 14 Mar. 17 Mar. 23 1,140 Credit 1,140 1,660 Mar. 03 (a) Mar. 16 2,800 Spell Supply Debit Van Industries Debit Date Date Credit 19,000 Balance 19,000 18,430 Credit 38,000 Balance 38,000 Mar. 09 Mar. 19 Mar. 01 Mar. 13 (a) 570 38,000 Prepare the March 31 trial balance, schedule of accounts receivable and schedule of accounts payable. Complete this question by entering your answers in the tabs below. Trial Balance Schedule of AR Schedule of AP Prepare the March 31 trial balance. CHURCH COMPANY Trial Balance March 31 Debit Credit Totals $ 0 $ 0 Prepare the March 31 trial balance, schedule of accounts receivable and schedule of accounts payable. Complete this question by entering your answers in the tabs below. Trial Balance Schedule of AR Schedule of AP Prepare the March 31 schedule of accounts receivable. CHURCH COMPANY Schedule of Accounts Receivable March 31 Jovita Albany 11,400 4,560 Linda Witt Min Cho Total accounts receivable 15,960 Prepare the March 31 trial balance, schedule of accounts receivable and schedule of accounts payable. Complete this question by entering your answers in the tabs below. Schedule of Trial Balance AR Schedule of AP Prepare the March 31 schedule of accounts payable. 2,800 CHURCH COMPANY Schedule of Accounts Payable March 31 Gabel Company Spell Supply Van Industries CD Company Total accounts payable 18,430 21,230