Problem 7-1A Special journals, subsidiary ledgers, trial balance-perpetual LO C3
ID: 2511869 • Letter: P
Question
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 $36,000 of merchandise from Van Industries, invoice dated March 1, terms 3/15, n/30. Sold merchandise on credit to Min Cho, Invoice No. 854, for $14,400 (cost is $7,200) 3 (a) Purchased $1,080 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 $7,200 (cost is $3,600) 6 Borrowed $72,000 cash from Federal Bank by signing a long-term note payable 9 Purchased $18,000 of office equipment on credit from Spell Supply, invoice dated March 9, terms n/18 EOM. Sold merchandise on credit to Jovita Albany, Invoice No. 856, for $3,680 (cost is $1,800) Received payment from Min Cho for the March 2 sale less the discount Purchased $33,000 of merchandise from the CD Company, invoice dated March month, $16,280. Cashed the check and paid the employees but are recorded only twice here to reduce repetitive entries 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 13, terms 3/10, n/3e 15 (a) Issued Check No. 417, payable to Payroll, in payment of sales salaries expense 15 (b) Cash sales for the first half of the month are $57,6ee (cost is $46,880). (Cash sales are recorded daily, Purchased $1,600 of store supplies on credit from Gabel Company, invoice dated March 16 , terms n/10 EOM. Received a 53,380 credit memorandum from CD Company for the re turn of unsatisfactory merchandise purchased Received a $540 credit memorandum from Spell Supply for office equipment received on March 9 and returned Received payment from Jovita Albany for the sale of March 10 less the discount Issued Check No. 418 to CD Company in payment of t 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, 328 (cost is $1,728) month, $16,200. Cashed the check and paid the employees have been posted as individual amounts to the general ledger accounts were posted. Foot and 31 (a) Issued Check No. 419, payable to Payroll, in payment of sales salaries expense for the last half of the 31 (b) Cash sales for the last half of the month are $63,368 (cost is s38,016) 1 (c) Verify that amounts impacting customer and creditor accounts were posted and that any anounts that should 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.
Explanation / Answer
Cash Inventory Date Debit Credit Balance Date Debit Credit Balance Mar.6 72000 72000 0 Mar.12 13968 85968 Mar.1 36000 36000 Mar.13 34920 51048 Mar.2 7200 28800 Mar.13 6984 58032 Mar.3 3600 25200 Mar.15 16200 41832 Mar.10 1800 23400 Mar.15 57600 99432 Mar.13 1080 22320 Mar.20 3492 102924 Mar.14 33000 55320 Mar.23 28809 74115 Mar.15 46080 9240 Mar.31 16200 57915 Mar.17 3300 5940 Mar.31 63360 121275 Mar.23 891 5049 Mar.27 4320 729 Mar.28 1728 -999 Office supplies Mar.31 38016 -39015 Date Debit Credit Balance Mar.3 1080 1080 1080 Stores supplies 1080 Date Debit Credit Balance Mar.16 1600 1600 Sales 1600 Date Debit Credit Balance Mar.2 14400 14400 Long term notes payable Mar.3 7200 21600 Date Debit Credit Balance Mr.10 3600 25200 Mar.6 72000 72000 Mar.15 57600 82800 72000 Mar.27 10800 93600 72000 Mar.28 4320 97920 Mar.31 63360 161280 Sales discounts Date Debit Credit Balance Mar.12 432 432 Sales salaries expense Mar.13 216 648 Date Debit Credit Balance Mar.20 108 756 Mar.15 16200 16200 756 Mar.31 16200 32400 Office equipment Cost of goods sold Date Debit Credit Balance Date Debit Credit Balance Mar.9 18000 18000 Mar.2 7200 7200 Mar.19 540 17460 Mar.3 3600 10800 17460 Mr.10 1800 12600 Mar.15 46080 58680 Mar.27 4320 63000 Mar.28 1728 64728 Mar.31 38016 102744 Accounts receivable Date Debit Credit Balance Mar.31 40320 25200 15120 15120 CHRUCH COMPANY Schedule of Accounts Receivable Mar-31 Customer Amount Jovita Albany 10800 Linda Witt 4320 Minh Cho 0 Total 15120 Jovita Albany Date Debit Credit Balance Mar.10 3600 3600 Mar.20 3600 0 Mar.27 10800 10800 Linda Wit Date Debit Credit Balance Mar.3 7200 7200 Mar.13 7200 0 Mar.28 4320 4320 4320 Min Cho Date Debit Credit Balance Mar.2 14400 14400 Mar.12 14400 0 0 Accounts payable Date Debit Credit Balance Mar.31 69540 89680 20140 Mar.3 20140 CHRUCH COMPANY Schedule of Accounts Payable Mar-31 Supplier Amount Spell Company 17460 Gabel Company 2680 Van Industries 0 CD Company 0 Total 20140 Spell Company Date Debit Credit Balance Mar.9 18000 18000 Mar.19 540 17460 17460 17460 Van Industries Date Debit Credit Balance Mar.1 36000 36000 Mar.13 36000 0 0 0 CD Company Date Debit Credit Balance Mar.14 0 33000 33000 Mar.17 3300 29700 Mar.23 29700 0 0 Gabel Company Date Debit Credit Balance Mar.3 1080 1080 Mar.16 1600 2680 2680 2680 CHURCH COMPANY Trial Balance Mar-31 Account Debit Credit Cash 121275 Accounts Receivable 15120 Inventory 39015 Office Supplies 1080 Stores Supplies 1600 Office Equipment 17460 Accounts Payable 20140 Long Term Liability 72000 Sales 161280 Sales Discounts 756 Cost of goods sold 102744 Sales Salaries Expense 32400 Total 292435 292435