Question

GL0701 - Based on Problem 7-1A Church Company LO P1, P2, P3, P4

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, terms 2/15, n/30.
Mar.		2		Sold merchandise on credit to Min Cho, Invoice No. 854, for $16,800 (cost is $8,400).
Mar.		3		Purchased $1,230 of office supplies on credit from Gabel Company, terms n/30.
Mar.		3		Sold merchandise on credit to Linda Witt, Invoice No. 855, for $10,200 (cost is $5,800).
Mar.		6		Borrowed $82,000 cash from Federal Bank by signing a long-term note payable.
Mar.		9		Purchased $21,850 of office equipment on credit from Spell Supply, terms n/30.
Mar.		10		Sold merchandise on credit to Jovita Albany, Invoice No. 856, for $5,600 (cost is $2,900).
Mar.		12		Received payment from Min Cho for the March 2 sale less the discount of $336.
Mar.		13		Sent Van Industries Check No. 416 in payment of the March 1 invoice less the discount of $872.
Mar.		13		Received payment from Linda Witt for the March 3 sale less the discount of $204.
Mar.		14		Purchased $32,625 of merchandise from the CD Company, terms 2/10, n/30.
Mar.		15		Issued Check No. 417 for $18,300, payee is Payroll, in payment of sales salaries expense for the first half of the month.
Mar.		15		Cash sales for the first half of the month are $34,680 (cost is $20,210). These cash sales are recorded in the cash receipts journal on March 15.
Mar.		16		Purchased $1,770 of store supplies on credit from Gabel Company, terms n/30.
Mar.		17		Returned $2,425 of unsatisfactory merchandise purchased on March 14 to CD Company. Church reduces accounts payable by that amount.
Mar.		19		Returned $630 of office equipment purchased on March 9 to Spell Supply. Church reduces accounts payable by that amount.
Mar.		20		Received payment from Jovita Albany for the sale of March 10 less the discount of $112.
Mar.		23		Issued Check No. 418 to CD Company in payment of the March 14 purchase less the March 17 return and the discount of $604.
Mar.		27		Sold merchandise on credit to Jovita Albany, Invoice No. 857, for $14,910 (cost is $7,220).
Mar.		28		Sold merchandise on credit to Linda Witt, Invoice No. 858, for $4,315 (cost is $3,280).
Mar.		31		Issued Check No. 419 for $18,300, payee is Payroll, in payment of sales salaries expense for the last half of the month.
Mar.		31		Cash sales for the last half of the month are $30,180 (cost is $16,820). These cash sales are recorded in the cash receipts journal on March 31.

For this question you must post to the General Journal, General Ledger, Trial Balance, Cash Rec Journal, Cash Disb Journal, Purchases Journal, and Sales Journal.

Answer 1

Mar 1. Purchases. Dr. 43600

To Van Industries. 43600

Mar 2. Min Cho. Dr. 16800

To Sales. 16800

Mar 3. Office supplies. Dr. 1230

To Gabel Company. 1230

Mar 3. Linda Witt. Dr. 10200

To Sales. 10200

Mar 6. Cash. Dr. 82000

To Notes payable. 82000

Mar 9. Office equipment. Dr. 21850

To Spell supply. 21850

Mar 10. Jovita Albany. Dr. 5600

To Sales. 5600

Mar 12. Cash. Dr. 16464

Discount. Dr. 336

To Min Cho. 16800

Mar 13. Van Industries. Dr. 43600

To Bank 42728

To Discount. 872

Mar 13. Cash. Dr. 9996

Discount. Dr. 204

To Linda Witt. 10200

Mar 14. Purchases. Dr. 32625

To CD Company. 32625

Mar 15. Sales salaries expense. Dr. 18300

To Bank 18300

Mar. 15. Cash. Dr. 34680

To Sales. 34680

Mar 16. Store supplies. Dr. 1770

To Gabel Company. 1770

Mar 17. CD Company. Dr. 2425

To Purchase returns. 2425

Mar 19. Spell Supply. Dr. 630

To Office equipment. 630

Mar 20. Cash. Dr. 2488

Discount. Dr. 112

To Jovita Albany. 2600

Mar 23. CD Company. Dr. 30200

To Bank. 29596

To Discount. 604