Church Company completes these transactions and events during March of the current year (terms for all its credit sales are 1/10, n/30). March 1 Purchased $32,000 of merchandise from Van Industries, terms 1/15, n/30. March 2 Sold merchandise on credit to Min Cho, Invoice Number 854, for $12,800 (cost is $6,400). March 3 (a) Purchased $960 of office supplies on credit from Gabel Company, terms n/30. March 3 (b) Sold merchandise on credit to Linda Witt, Invoice Number 855, for $6,400 (cost is $3,200). March 6 Borrowed $72,000 cash from Federal Bank by signing a long-term note payable. March 9 Purchased $16,000 of office equipment on credit from Spell Supply, terms n/30. March 10 Sold merchandise on credit to Jovita Albany, Invoice Number 856, for $3,200 (cost is $1,600). March 12 Received payment from Min Cho for the March 2 sale less the discount of $128. March 13 (a) Sent Van Industries Check Number 416 in payment of the March 1 invoice less the discount of $320. March 13 (b) Received payment from Linda Witt for the March 3 sale less the discount of $64. March 14 Purchased $30,000 of merchandise from the CD Company, terms 1/10, n/30. March 15 (a) Issued Check Number 417 for $14,800; payee is Payroll, in payment of sales salaries expense for the first half of the month. March 15 (b) Cash sales for the first half of the month are $51,200 (cost is $40,960). These cash sales are recorded in the cash receipts journal on March 15. March 16 Purchased $1,480 of store supplies on credit from Gabel Company, terms n/30. March 17 Returned $3,000 of unsatisfactory merchandise purchased on March 14 to CD Company. Church reduces accounts payable by that amount. March 19 Returned $480 of office equipment purchased on March 9 to Spell Supply. Church reduces accounts payable by that amount. March 20 Received payment from Jovita Albany for the sale of March 10 less the discount of $32. March 23 Issued Check Number 418 to CD Company in payment of the March 14 purchase less the March 17 return and the $270 discount. March 27 Sold merchandise on credit to Jovita Albany, Invoice Number 857, for $9,600 (cost is $3,840). March 28 Sold merchandise on credit to Linda Witt, Invoice Number 858, for $3,840 (cost is $1,536). March 31 (a) Issued Check Number 419 for $14,800; payee is Payroll, in payment of sales salaries expense for the last half of the month. March 31 (b) Cash sales for the last half of the month are $56,320 (cost is $33,792). These cash sales are recorded in the cash receipts journal on March 31. March 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 beginning balance is $61,000), Z. Church, Capital (March 1 beginning balance is $61,000) and Church Company uses the perpetual inventory system. Required: (a) Post information from the journals in Part 2 to the general ledger and the accounts receivable and accounts payable subsidiary ledgers.

Church Company completes these transactions and events during March of the current year (terms for all its credit sales are 1/10, n/30). March 1 Purchased $32,000 of merchandise from Van Industries, terms 1/15, n/30. March 2 Sold merchandise on credit to Min Cho, Invoice Number 854, for $12,800 (cost is $6,400). March 3 (a) Purchased $960 of office supplies on credit from Gabel Company, terms n/30. March 3 (b) Sold merchandise on credit to Linda Witt, Invoice Number 855, for $6,400 (cost is $3,200). March 6 Borrowed $72,000 cash from Federal Bank by signing a long-term note payable. March 9 Purchased $16,000 of office equipment on credit from Spell Supply, terms n/30. March 10 Sold merchandise on credit to Jovita Albany, Invoice Number 856, for $3,200 (cost is $1,600). March 12 Received payment from Min Cho for the March 2 sale less the discount of $128. March 13 (a) Sent Van Industries Check Number 416 in payment of the March 1 invoice less the discount of $320. March 13 (b) Received payment from Linda Witt for the March 3 sale less the discount of $64. March 14 Purchased $30,000 of merchandise from the CD Company, terms 1/10, n/30. March 15 (a) Issued Check Number 417 for $14,800; payee is Payroll, in payment of sales salaries expense for the first half of the month. March 15 (b) Cash sales for the first half of the month are $51,200 (cost is $40,960). These cash sales are recorded in the cash receipts journal on March 15. March 16 Purchased $1,480 of store supplies on credit from Gabel Company, terms n/30. March 17 Returned $3,000 of unsatisfactory merchandise purchased on March 14 to CD Company. Church reduces accounts payable by that amount. March 19 Returned $480 of office equipment purchased on March 9 to Spell Supply. Church reduces accounts payable by that amount. March 20 Received payment from Jovita Albany for the sale of March 10 less the discount of $32. March 23 Issued Check Number 418 to CD Company in payment of the March 14 purchase less the March 17 return and the $270 discount. March 27 Sold merchandise on credit to Jovita Albany, Invoice Number 857, for $9,600 (cost is $3,840). March 28 Sold merchandise on credit to Linda Witt, Invoice Number 858, for $3,840 (cost is $1,536). March 31 (a) Issued Check Number 419 for $14,800; payee is Payroll, in payment of sales salaries expense for the last half of the month. March 31 (b) Cash sales for the last half of the month are $56,320 (cost is $33,792). These cash sales are recorded in the cash receipts journal on March 31. March 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 beginning balance is $61,000), Z. Church, Capital (March 1 beginning balance is $61,000) and Church Company uses the perpetual inventory system. Required: (a) Post information from the journals in Part 2 to the general ledger and the accounts receivable and accounts payable subsidiary ledgers.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 18E

See similar textbooks

Related questions

Concept explainers

Question

Church Company completes these transactions and events during March of the current year (terms for all its credit sales are 1/10, n/30).

March 1	Purchased $32,000 of merchandise from Van Industries, terms 1/15, n/30.
March 2	Sold merchandise on credit to Min Cho, Invoice Number 854, for $12,800 (cost is $6,400).
March 3 (a)	Purchased $960 of office supplies on credit from Gabel Company, terms n/30.
March 3 (b)	Sold merchandise on credit to Linda Witt, Invoice Number 855, for $6,400 (cost is $3,200).
March 6	Borrowed $72,000 cash from Federal Bank by signing a long-term note payable.
March 9	Purchased $16,000 of office equipment on credit from Spell Supply, terms n/30.
March 10	Sold merchandise on credit to Jovita Albany, Invoice Number 856, for $3,200 (cost is $1,600).
March 12	Received payment from Min Cho for the March 2 sale less the discount of $128.
March 13 (a)	Sent Van Industries Check Number 416 in payment of the March 1 invoice less the discount of $320.
March 13 (b)	Received payment from Linda Witt for the March 3 sale less the discount of $64.
March 14	Purchased $30,000 of merchandise from the CD Company, terms 1/10, n/30.
March 15 (a)	Issued Check Number 417 for $14,800; payee is Payroll, in payment of sales salaries expense for the first half of the month.
March 15 (b)	Cash sales for the first half of the month are $51,200 (cost is $40,960). These cash sales are recorded in the cash receipts journal on March 15.
March 16	Purchased $1,480 of store supplies on credit from Gabel Company, terms n/30.
March 17	Returned $3,000 of unsatisfactory merchandise purchased on March 14 to CD Company. Church reduces accounts payable by that amount.
March 19	Returned $480 of office equipment purchased on March 9 to Spell Supply. Church reduces accounts payable by that amount.
March 20	Received payment from Jovita Albany for the sale of March 10 less the discount of $32.
March 23	Issued Check Number 418 to CD Company in payment of the March 14 purchase less the March 17 return and the $270 discount.
March 27	Sold merchandise on credit to Jovita Albany, Invoice Number 857, for $9,600 (cost is $3,840).
March 28	Sold merchandise on credit to Linda Witt, Invoice Number 858, for $3,840 (cost is $1,536).
March 31 (a)	Issued Check Number 419 for $14,800; payee is Payroll, in payment of sales salaries expense for the last half of the month.
March 31 (b)	Cash sales for the last half of the month are $56,320 (cost is $33,792). These cash sales are recorded in the cash receipts journal on March 31.
March 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 beginning balance is $61,000), Z. Church, Capital (March 1 beginning balance is $61,000) and Church Company uses the perpetual inventory system.

Required:

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

I attached the journals from part two

March 13
March 15
March 23
March 31
Date
March 31
No
1
2
Check
Number
416
417
418
419
Totals
Date
March 17
March 19
Payee
Van Industries
Payroll
CD Company
Payroll
CASH PAYMENTS JOURNAL
Account Debited
Van Industries
Sales salaries expense
CD Company
Sales salaries expense
General Journal
Accounts payable-CD Company
Inventory
Accounts payable-Spell Supply
Office equipment
Cash Credit
S
$
31,680
14,800
26,730
14,800
88,010
Inventory
Credit
$
$
320
270
Other
Accounts
Debit
590 $
Debit
14,800
14,800
29,600 $
3,000
Accounts
Payable Debit
$
32,000
480
Credit
27,000
59,000
3,000
480

Date
March 02
March 03
March 10
March 27
March 28
March 31
Date
March 01
March 03
March 09
March 14
March 16
March 31
Date
March 06
March 12
March 13
March 15
March 20
March 31
March 31
Min Cho
Linda Witt
Jovita Albany
Jovita Albany
Linda Witt
Account Debited
Totals
Totals
Van Industries
Office supplies/Gabel
Office equipment/Spell Supply
CD Company
Store supplies/Gabel
Account
Account Credited
Totals
Long-term note payable
MMin Cho
Linda Witt
Sales
Jovita Albany
Sales
SALES JOURNAL
Invoice
Number
$
854
855
856
857
858
3/1
3/3
3/9
3/14
3/16
Cash Debit
PURCHASES JOURNAL
Date of
Invoice
72,000
12,672
6,336
51,200
3,168
56,320
Accounts
Receivable Debit
Sales Credit
$ 201,696
$
S
$
Terms
CASH RECEIPTS JOURNAL
Sales
Discount
Debit
1/15, n/30
n/30
n/30
1/10, n/30
n/30
128
64
12,800
6,400
3,200
32
35,840
224 $
9,600
3,840
$
Accounts
Receivable
Credit
Accounts
Payable Credit
$
12,800
6,400
Cost of Goods Sold
Debit Inventory Credit
3,200
$
32,000
960
16,000
30,000
1,480
Inventory
Debit
Sales Credit
$ 32,000
51,200
56,320
6,400
3,200
1,600
3,840
1,536
16,576
80,440 $ 62,000 $
30,000
$
22,400 $ 107,520 $
Office
Supplies
Debit
Other Accounts
Credit
72,000
960
Other
Accounts
Debit
16,000
72,000 $
1,480
960 $ 17,480
Cost of Goods
Sold Debit
Inventory
Credit
40,960
33,792
74,752

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 20 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Accounting for Cash and cash equivalents

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.