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 $40,000 of merchandise from Van Industries, invoice dated March 1, terms 2/15, n/30. Sold merchandise on credit to Min Cho, Invoice No. 854, for $16,000 (cost is $8,000). 3 (a) Purchased $1,200 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 $8,000 (cost is $4,000). Borrowed $72,000 cash from Federal Bank by signing a long-term note payable. Purchased $20,000 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 $4,000 (cost is $2,000). 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 $35,000 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, $16,700. Cashed the check and paid the employees. 15 (b) Cash sales for the first half of the month are $64,000 (cost is $51,200). (Cash sales are recorded daily, but are recorded only twice here to reduce repetitive entries.) Purchased $1,720 of store supplies on credit from Gabel Company, invoice dated March 16, terms n/10 EOM. Received a $3,500 credit memorandum from CD Company for the return of unsatisfactory merchandise purchased on March 14. Received a $600 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. Sold merchandise on credit to Jovita Albany, Invoice No. 857, for $12,000 (cost is $4,800). Sold merchandise on credit to Linda Witt, Invoice No. 858, for $4,800 (cost is $1,920). 31 (a) Issued Check No. 419, payable to Payroll, in payment of sales salaries expense for the last half of the month, $16,700. Cashed the check and paid the employees. 31 (b) Cash sales for the last half of the month are $70, 400 (cost is $42, 240). 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 $63,000), Z. Church, Capital (March 1 beg. bal. is $63,000) and Church Company uses the perpetual inventory system. Req 2D Req 2E Req 2A Req 2B Req 20 ................... Enter the transactions in a sales journal. SALES JOURNAL Date Account Debited Invoice Number Accounts Receivable Dr. Sales Cr. Cost of Goods Sold Dr. Inventory Cr. $ 8,000 4,000 $ Mar. 02 Mar. 03 Mar. 10 Min Cho Linda Witt Jovita Albany Jovita Albany Linda Witt 854 855 8560 857 858 16,000 8,000 4,000 12,000 4,800 2,000 Mar. 27 L 4,800 1,920 Mar. 28 Mar. 31 Totals $ 44,800 $ 20,720 Req 2A Req 2B Req 20 Req 2D Req 2E Enter the transactions in a purchases journal. PURCHASES JOURNAL Date Account Date of Invoice Terms Accounts Payable Cr. Inventory Dr. Office Supplies Dr. Other Accounts Dr. $ 40,000 Mar. 01 Mar. 03 Mar. 09 Mar. 14 Mar. 16 1,200 3/1 3/3 3/9 Van Industries Office Supplies/Gabel Office equipment/Spell Supply CD Company Store supplies/Gabel ? 2/15, n/30 $ /10, EOM n/10, EOM © 2/10, n/3001 n/10, EOM 40,000 1,200 20,000 35,000 1,720 20,000 35,000 3/13 3/16 1,720 Mar. 31 Totals $ 97,920 $ 75,000 $ 1,200 $ 21,720 Req 2A Req 2B Req 20 Req 2D Req 2E Enter the transactions in a cash receipts journal. CASH RECEIPTS JOURNAL Date Account Credited Cash Dr. Sales Discount Dr. Accounts Receivable Cr. Sales Cr. Other Accts. Cr. Cost of Goods Sold Dr. Inventory Cr. Mar. 06 $ 72,000 $ 72,000 Long-term note payable Min Cho Linda Witt Sales Jovita Albany Sales 320 160 Mar. 12 Mar. 13 Mar. 15 Mar. 20 Mar. 31 16,000 8,000 15,680 7,840 64,000 3,920 70,400 64,000 51,200 80 4,000 70,400 42,240 Mar. 31 Totals $ 233,840 $ 560 $ 28,000 $ 134,400 $ 72,000 $ 93,440 Req 2A Req 2B 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. $ 800 Other Accounts Dr. Accounts Payable Dr. $ 40,000 ?$ 16,700 Mar. 13 Mar. 15 Mar. 23 Mar. 31 416 ? 417 418 419 Van Industries © Payroll ? CD Company Payroll Van Industries Sales salaries expense CD Company Sales salaries expense 39,200 16,700 30,870 16,700 630 31,500 16,700 Mar. 31 Totals $ 103,470 $ 1,430 $ 33,400 $ 71,500 Req 2A Req 2B Req 2c Req 2D Req 2E Enter the transactions in a general journal. No Date General Journal Credit Debit 3,500 Mar. 17 Accounts payable—CD Co Inventory 3,500 Mar. 19 600 Accounts payable—Spell Supply Office equipment 600 GENERAL LEDGER Cash Debit Accounts Receivable Debit Date Credit Balance Date Credit Balance Inventory Debit Office Supplies Debit Date Credit Balance Date Credit Balance Mar. 01 Store Supplies Debit Office Equipment Debit Date Credit Balance Date Credit Balance Accounts Payable Debit Long-Term Notes Payable Debit Credit Date Credit Balance Date Balance Z. Church, Capital Debit Sales Debit Date Credit Balance Date Credit Balance Mar. 01 Sales Discounts Debit Cost of Goods Sold Debit Date Credit Balance Date Credit Balance Sales Salaries Expense Debit ACCOUNTS RECEIVABLE LEDGER Jovita Albany Debit Credit Date Credit Balance Date Balance Min Cho Debit Linda Witt Debit Date Credit Balance Date Credit Balance ACCOUNTS PAYABLE LEDGER CD Company Debit Credit Gabel Company Debit Date Balance Date Credit Balance Spell Supply Van Industries Debit Date Debit Credit Balance Date Credit Balance