P7-3A 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 $43,600 of
merchandise from Van Industries, invoice dated March 1, terms 2/15, n/30.
2 Sold merchandise on credit to Min Cho,
Invoice No. 854, for $16,800 (cost is $8,400). 3 (a) Purchased $1,230 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 $10,200 (cost is $5,800).
6 Borrowed $82,000 cash
from Federal Bank by signing a long-term note payable. 9 Purchased $21,850 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 $5,600 (cost is $2,900).
12 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.
14 Purchased $32,625 of
merchandise from the CD Company, invoice dated March 13, terms 2/10, n/30.
15 (a) Issued Check No.
417, payable to Payroll, in payment of sales salaries expense for the first
half of the month, $18,300. Cashed the check and paid the employees.
15 (b) Cash sales for the
first half of the month are $34,680 (cost is $20,210). (Cash sales are recorded
daily, but are recorded only twice here to reduce repetitive entries.)
16 Purchased $1,770 of
store supplies on credit from Gabel Company, invoice dated March 16, terms n/10
EOM.
17 Received a $2,425 credit
memorandum from CD Company for the return of unsatisfactory merchandise
purchased on March 14.
19 Received a $630 credit
memorandum from Spell Supply for office equipment received on March 9 and returned
for credit.
20 Received payment from
Jovita Albany for the sale of March 10 less the discount. 23 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 $14,910 (cost is $7,220).
28 Sold merchandise on
credit to Linda Witt, Invoice No. 858, for $4,315 (cost is $3,280).
31 (a) Issued Check No.
419, payable to Payroll, in payment of sales salaries expense for the last half
of the month, $18,300. Cashed the check and paid the employees.
31 (b) Cash sales for the
last half of the month are $30,180 (cost is $16,820).
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 $10,000); Z. Church, Capital
(March 1 beg. bal. is $10,000). Enter the transactions in a sales journal.
Enter the transactions in a purchases journal. Enter the transactions in a cash
receipts journal. Enter the transactions in a cash disbursements journal. Enter
the transactions in a general journal. Post the transactions in a general
ledger. Prepare a trial balance of the general ledger.
TUTORIAL PREVIEW
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CHURCH COMPANY
Sales Journal
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Date
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Account debited
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Inv.
No.
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PR
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Acct. Rec. Debit Sales
Cr.
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COGS
Debit
Inv. Credit
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|
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Mar. 2
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Min Cho
|
854
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√
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16,800
|
8400
|
|
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3
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Linda Witt
|
855
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√
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10,200
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5,800
|
|
|
10
|
Jovita Albany
|
856
|
√
|
5,600
|
2,900
|
|
File name: P7-3A Church.xls File type: xls PRICE: $15
