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 3 Purchased $36,000 of merchandise from Van Industries, invoice dated Iarch 1, terms 3/15, n/30. Sold merchandise on credit to Min Cho, Invoice No. 854, for $14, 400 (cost is $7, 200). (a) Purchased $1,080 of office supplies on credit from Gabel Company, invoice dated March 3, terns n/10 BOI. Sold merchandise on credit to Linda Witt, Invoice No. 855, for $7,200 (cost is $3,600). Borrowed $72,000 cash from Federal Bank by signing a long-term note payable. Purchased $18,000 of office equipment on credit from Spell Supply, invoice dated March 9, terms n/10 EOM. Sold merchandise on credit to Jovita Albany, Invoice No. 856, for $3,600 (cost is $1, 800). Received payment from lin Cho for the larch 2 sale less the discount. Sent Van Industries Check No. 416 in payment of the larch 1 invoice less the discount. (b) Received payment from Linda Vitt for the larch 3 sale less the discount. Purchased $32,000 of merchandise from the CD Company, invoice dated larch 13, terms 3/10, n/30. (a) Issued Check No. 417, payable to Payroll, in payment of sales salaries expense for the first half of the month, $13, 400. Cashed the check and paid the employees. Cash sales for the first half of the month are $57,600 (cost is $46, 080). (Cash sales are recorded daily, but are recorded only twice here to reduce repetitive entries.) Purchased $1, 600 of store supplies on credit from Gabel Company, invoice dated March 16, terms n/10 BOI. Received a $3,200 credit memorandum from CD Company for the return of unsatisfactory merchandise purchased on March (a) 13 14. Received a $540 credit memorandum from Spell Supply for office equipment received on Iarch 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. Sold merchandise on credit to Jovita Albany, Invoice No. 857, for $10,800 (cost is $4, 320). Sold merchandise on credit to Linda Witt, Invoice No. 858, for $4, 320 (cost is $1,728). Issued Check No. 419, payable to Payroll, in payment of sales salaries expense for the last half of the month, $13, 400. Cashed the check and paid the employees. Cash sales for the last half of the month are $63, 360 (cost is $38,016). 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. (b) 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. ANN Req 2A Req 28 Req 20 Req 2D Req 2E Enter the transactions in a cash disbursements journal. CASH DISBURSEMENTS JOURNAL Date Ck.No. Payee Account Debited Cash Cr. Inventory Cr. $ $ 1,080 34,920 13,400 Other Accounts Accounts Dr. Payable Dr. R$ 36,000 13,400 Mar. 13 416 Mar. 15 417 Mar. 23 418 Mar. 31419 Van Industries Payroll CD Company Payroll Van Industries Sales salaries expense CD Company Sales salaries expense 13,400 13,400 Mar. 31 Totals $ 61,720 $ 1,884 % 26,800 $ 36,000
