Required information
Problem 7-1A Special journals, subsidiary ledgers, trialbalance-perpetual LO C3, P1, P2
[The following information applies to the questionsdisplayed below.]
Church Company completes these transactions and events during Marchof the current year (terms for all its credit sales are 3/10,n/30).
Mar. 1 Purchased $40,000 of merchandisefrom Van Industries, invoice dated March 1, terms 3/15, n/30. 2 Sold merchandise on credit to MinCho, Invoice No. 854, for $16,000 (cost is $8,000). 3 (a) Purchased $1,200 of office supplieson credit from Gabel Company, invoice dated March 3, terms n/10EOM. 3 (b) Sold merchandise on credit to LindaWitt, Invoice No. 855, for $8,000 (cost is $4,000). 6 Borrowed $72,000 cash from FederalBank by signing a long-term note payable. 9 Purchased $20,000 of officeequipment on credit from Spell Supply, invoice dated March 9, termsn/10 EOM. 10 Sold merchandise on credit toJovita Albany, Invoice No. 856, for $4,000 (cost is $2,000). 12 Received payment from Min Cho forthe March 2 sale less the discount. 13 (a) Sent Van Industries Check No. 416in payment of the March 1 invoice less the discount. 13 (b) Received payment from Linda Wittfor the March 3 sale less the discount. 14 Purchased $34,000 of merchandisefrom the CD Company, invoice dated March 13, terms 3/10, n/30. 15 (a) Issued Check No. 417, payable toPayroll, in payment of sales salaries expense for the first half ofthe month, $15,200. Cashed the check and paid the employees. 15 (b) Cash sales for the first half ofthe month are $64,000 (cost is $51,200). (Cash sales are recordeddaily, but are recorded only twice here to reduce repetitiveentries.) 16 Purchased $1,720 of store supplieson credit from Gabel Company, invoice dated March 16, terms n/10EOM. 17 Received a $3,400 credit memorandumfrom CD Company for the return of unsatisfactory merchandisepurchased on March 14. 19 Received a $600 credit memorandumfrom Spell Supply for office equipment received on March 9 andreturned for credit. 20 Received payment from Jovita Albanyfor the sale of March 10 less the discount. 23 Issued Check No. 418 to CD Companyin payment of the invoice of March 13 less the March 17 return andthe discount. 27 Sold merchandise on credit toJovita Albany, Invoice No. 857, for $12,000 (cost is $4,800). 28 Sold merchandise on credit to LindaWitt, Invoice No. 858, for $4,800 (cost is $1,920). 31 (a) Issued Check No. 419, payable toPayroll, in payment of sales salaries expense for the last half ofthe month, $15,200. Cashed the check and paid the employees. 31 (b) Cash sales for the last half of themonth are $70,400 (cost is $42,240). 31 (c) Verify that amounts impactingcustomer and creditor accounts were posted and that any amountsthat should have been posted as individual amounts to the generalledger accounts were posted. Foot and crossfoot the journals andmake 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.
Problem 7-1A Part 2
Required:
2-a. Enter the transactions in a sales journal.
2-b. Enter the transactions in a purchasesjournal.
2-c. Enter the transactions in a cash receiptsjournal.
2-d. Enter the transactions in a cashdisbursements journal.
2-e. Enter the transactions in a generaljournal.
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. Mar.31 Totals $0 $0
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. Mar.31 Totals $0 $0 $0 $0
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.31 Totals $0 $0 $0 $0 $0 $0
Enter the transactions in a cash disbursements journal.
CASH DISBURSEMENTS JOURNAL Date Ck.No. Payee Account Debited Cash Cr. Inventory Cr. Other Accounts Dr. Accounts Payable Dr. Mar.31 Totals $0 $0 $0 $0
Enter the transactions in a general journal.
Journal Entry Worksheet
Received a $3,400 credit memorandum from CD Company for thereturn of unsatisfactory merchandise purchased on March 14.
Received a $600 credit memorandum from Spell Supply for officeequipment received on March 9 and returned for credit.
Date General Journal Debit Credit
Mar. 17
*Enter debits before credits
Enter the transactions in a general journal.
Journal Entry Worksheet
Received a $3,400 credit memorandum from CD Company for thereturn of unsatisfactory merchandise purchased on March 14.
Received a $600 credit memorandum from Spell Supply for officeequipment received on March 9 and returned for credit.
Date General Journal Debit Credit
Mar. 19
*Enter debits before credits
Required information
Problem 7-1A Special journals, subsidiary ledgers, trialbalance-perpetual LO C3, P1, P2
[The following information applies to the questionsdisplayed below.]
Church Company completes these transactions and events during Marchof the current year (terms for all its credit sales are 3/10,n/30).
| Mar. | 1 | Purchased $40,000 of merchandisefrom Van Industries, invoice dated March 1, terms 3/15, n/30. | ||||
| 2 | Sold merchandise on credit to MinCho, Invoice No. 854, for $16,000 (cost is $8,000). | |||||
| 3 | (a) | Purchased $1,200 of office supplieson credit from Gabel Company, invoice dated March 3, terms n/10EOM. | ||||
| 3 | (b) | Sold merchandise on credit to LindaWitt, Invoice No. 855, for $8,000 (cost is $4,000). | ||||
| 6 | Borrowed $72,000 cash from FederalBank by signing a long-term note payable. | |||||
| 9 | Purchased $20,000 of officeequipment on credit from Spell Supply, invoice dated March 9, termsn/10 EOM. | |||||
| 10 | Sold merchandise on credit toJovita Albany, Invoice No. 856, for $4,000 (cost is $2,000). | |||||
| 12 | Received payment from Min Cho forthe March 2 sale less the discount. | |||||
| 13 | (a) | Sent Van Industries Check No. 416in payment of the March 1 invoice less the discount. | ||||
| 13 | (b) | Received payment from Linda Wittfor the March 3 sale less the discount. | ||||
| 14 | Purchased $34,000 of merchandisefrom the CD Company, invoice dated March 13, terms 3/10, n/30. | |||||
| 15 | (a) | Issued Check No. 417, payable toPayroll, in payment of sales salaries expense for the first half ofthe month, $15,200. Cashed the check and paid the employees. | ||||
| 15 | (b) | Cash sales for the first half ofthe month are $64,000 (cost is $51,200). (Cash sales are recordeddaily, but are recorded only twice here to reduce repetitiveentries.) | ||||
| 16 | Purchased $1,720 of store supplieson credit from Gabel Company, invoice dated March 16, terms n/10EOM. | |||||
| 17 | Received a $3,400 credit memorandumfrom CD Company for the return of unsatisfactory merchandisepurchased on March 14. | |||||
| 19 | Received a $600 credit memorandumfrom Spell Supply for office equipment received on March 9 andreturned for credit. | |||||
| 20 | Received payment from Jovita Albanyfor the sale of March 10 less the discount. | |||||
| 23 | Issued Check No. 418 to CD Companyin payment of the invoice of March 13 less the March 17 return andthe discount. | |||||
| 27 | Sold merchandise on credit toJovita Albany, Invoice No. 857, for $12,000 (cost is $4,800). | |||||
| 28 | Sold merchandise on credit to LindaWitt, Invoice No. 858, for $4,800 (cost is $1,920). | |||||
| 31 | (a) | Issued Check No. 419, payable toPayroll, in payment of sales salaries expense for the last half ofthe month, $15,200. Cashed the check and paid the employees. | ||||
| 31 | (b) | Cash sales for the last half of themonth are $70,400 (cost is $42,240). | ||||
| 31 | (c) | Verify that amounts impactingcustomer and creditor accounts were posted and that any amountsthat should have been posted as individual amounts to the generalledger accounts were posted. Foot and crossfoot the journals andmake 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.
Problem 7-1A Part 2
Required:
2-a. Enter the transactions in a sales journal.
2-b. Enter the transactions in a purchasesjournal.
2-c. Enter the transactions in a cash receiptsjournal.
2-d. Enter the transactions in a cashdisbursements journal.
2-e. Enter the transactions in a generaljournal.
Enter the transactions in a sales journal.
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Enter the transactions in a purchases journal.
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Enter the transactions in a cash receipts journal.
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Enter the transactions in a cash disbursements journal.
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Enter the transactions in a general journal.
Journal Entry Worksheet
Received a $3,400 credit memorandum from CD Company for thereturn of unsatisfactory merchandise purchased on March 14.
Received a $600 credit memorandum from Spell Supply for officeequipment received on March 9 and returned for credit.
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*Enter debits before credits
Enter the transactions in a general journal.
Journal Entry Worksheet
Received a $3,400 credit memorandum from CD Company for thereturn of unsatisfactory merchandise purchased on March 14.
Received a $600 credit memorandum from Spell Supply for officeequipment received on March 9 and returned for credit.
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*Enter debits before credits
Related questions
Problem 7-1A Special journals, subsidiary ledgers, trialbalance-perpetual LO C3, P1, P2
[The following information applies to the questionsdisplayed below.]
Church Company completes these transactions and events during Marchof the current year (terms for all its credit sales are 3/10,n/30).
| Mar. | 1 | Purchased $40,000 of merchandisefrom Van Industries, invoice dated March 1, terms 3/15, n/30. | ||||
| 2 | Sold merchandise on credit to MinCho, Invoice No. 854, for $16,000 (cost is $8,000). | |||||
| 3 | (a) | Purchased $1,200 of office supplieson credit from Gabel Company, invoice dated March 3, terms n/10EOM. | ||||
| 3 | (b) | Sold merchandise on credit to LindaWitt, Invoice No. 855, for $8,000 (cost is $4,000). | ||||
| 6 | Borrowed $72,000 cash from FederalBank by signing a long-term note payable. | |||||
| 9 | Purchased $20,000 of officeequipment on credit from Spell Supply, invoice dated March 9, termsn/10 EOM. | |||||
| 10 | Sold merchandise on credit toJovita Albany, Invoice No. 856, for $4,000 (cost is $2,000). | |||||
| 12 | Received payment from Min Cho forthe March 2 sale less the discount. | |||||
| 13 | (a) | Sent Van Industries Check No. 416in payment of the March 1 invoice less the discount. | ||||
| 13 | (b) | Received payment from Linda Wittfor the March 3 sale less the discount. | ||||
| 14 | Purchased $34,000 of merchandisefrom the CD Company, invoice dated March 13, terms 3/10, n/30. | |||||
| 15 | (a) | Issued Check No. 417, payable toPayroll, in payment of sales salaries expense for the first half ofthe month, $15,200. Cashed the check and paid the employees. | ||||
| 15 | (b) | Cash sales for the first half ofthe month are $64,000 (cost is $51,200). (Cash sales are recordeddaily, but are recorded only twice here to reduce repetitiveentries.) | ||||
| 16 | Purchased $1,720 of store supplieson credit from Gabel Company, invoice dated March 16, terms n/10EOM. | |||||
| 17 | Received a $3,400 credit memorandumfrom CD Company for the return of unsatisfactory merchandisepurchased on March 14. | |||||
| 19 | Received a $600 credit memorandumfrom Spell Supply for office equipment received on March 9 andreturned for credit. | |||||
| 20 | Received payment from Jovita Albanyfor the sale of March 10 less the discount. | |||||
| 23 | Issued Check No. 418 to CD Companyin payment of the invoice of March 13 less the March 17 return andthe discount. | |||||
| 27 | Sold merchandise on credit toJovita Albany, Invoice No. 857, for $12,000 (cost is $4,800). | |||||
| 28 | Sold merchandise on credit to LindaWitt, Invoice No. 858, for $4,800 (cost is $1,920). | |||||
| 31 | (a) | Issued Check No. 419, payable toPayroll, in payment of sales salaries expense for the last half ofthe month, $15,200. Cashed the check and paid the employees. | ||||
| 31 | (b) | Cash sales for the last half of themonth are $70,400 (cost is $42,240). | ||||
| 31 | (c) | Verify that amounts impactingcustomer and creditor accounts were posted and that any amountsthat should have been posted as individual amounts to the generalledger accounts were posted. Foot and crossfoot the journals andmake 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.
Post information from the journals in Part 2 to the generalledger and the accounts receivable and accounts payable subsidiaryledgers.
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Wiset Company completes these transactions during April of thecurrent year (the terms of all its credit sales are 2/10,n/30).
Apr. 2 Purchased $14,600 of merchandise on credit from NothCompany, invoice dated April 2, terms 2/10, n/60.
Apr. 3 Sold merchandise on credit to Brooke Page Alistair,Invoice No. 760, for $4,600 (cost is $3,100).
Apr. 3 Purchased $1,590 of office supplies on credit fromCuster, Inc. Invoice dated April 2, terms n/10 EOM.
Apr. 4 Issued Check No. 587 to WorldView for advertising expense, $850.
Apr. 5 Sold merchandise on credit to Paula Kohr, Invoice No.761, for $8,900 (cost is $7,600).
Apr. 6 Received an $70 credit memorandum from Custer, Inc., forthe return of some of the office supplies received on April 3.
Apr. 9 Purchased $11,620 of store equipment on credit from HalâsSupply, invoice dated April 9, terms n/10 EOM.
Apr. 11 Sold merchandise on credit to Nic Nelson, Invoice No.762, for $10,200 (cost is $7,300).
Apr. 12 Issued Check No. 588 to Noth Company in payment of itsApril 2 invoice, less the discount.
Apr. 13 Received payment from Page Alistair for the April 3sale, less the discount.
Apr. 13 Sold $6,300 of merchandise on credit to Page Alistair(cost is $4,500), Invoice No. 763.
Apr. 14 Received payment from Paula Kohr for the April 5 sale,less the discount.
Apr. 16 Issued Check No. 589, payable to Payroll, in payment ofsales salaries expense for the first half of the month, $9,150.Cashed the check and paid employees.
Apr. 16 Cash sales for the first half of the month are $56,070(cost is $40,000). (Cash sales are recorded daily from cashregister data but are recorded only twice in this problem to reducerepetitive entries.)
Apr. 17 Purchased $14,200 of merchandise on credit from GrantCompany, invoice dated April 17, terms 2/10, n/30.
Apr. 18 Borrowed $72,000 cash from First State Bank by signing along-term note payable.
| Apr. 20 Received payment from Nic Nelson for the April 11 sale,less the discount. Apr. 20 Purchased $820 of store supplies on credit from HalâsSupply, invoice dated April 19, terms n/10 EOM. Apr. 23 Received a $1,000 credit memorandum from Grant Companyfor the return of defective merchandise received on April 17. Apr. 23 Received payment from Page Alistair for the April 13sale, less the discount. Apr. 25 Purchased $11,800 of merchandise on credit from NothCompany, invoice dated April 24, terms 2/10, n/60. Apr. 26 Issued Check No. 590 to Grant Company in payment of itsApril 17 invoice, less the return and the discount. Apr. 27 Sold $3,480 of merchandise on credit to Paula Kohr,Invoice No. 764 (cost is $2,490). Apr. 27 Sold $8,700 of merchandise on credit to Nic Nelson,Invoice No. 765 (cost is $4,230). Apr. 30 Issued Check No. 591, payable to Payroll, in payment ofthe sales salaries expense for the last half of the month,$9,150. Apr. 30 Cash sales for the last half of the month are $72,500(cost is $66,200).
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