Question

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 $33,000 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 $13,200 (cost is $6,600).
		3		(a)		Purchased $990 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 $6,600 (cost is $3,300).
		6				Borrowed $72,000 cash from Federal Bank by signing a long-term note payable.
		9				Purchased $16,500 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 $3,300 (cost is $1,650).
		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 $30,000 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, $14,600. Cashed the check and paid the employees.
		15		(b)		Cash sales for the first half of the month are $52,800 (cost is $42,240). (Cash sales are recorded daily, but are recorded only twice here to reduce repetitive entries.)
		16				Purchased $1,510 of store supplies on credit from Gabel Company, invoice dated March 16, terms n/10 EOM.
		17				Received a $3,000 credit memorandum from CD Company for the return of unsatisfactory merchandise purchased on March 14.
		19				Received a $495 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 $9,900 (cost is $3,960).
		28				Sold merchandise on credit to Linda Witt, Invoice No. 858, for $3,960 (cost is $1,584).
		31		(a)		Issued Check No. 419, payable to Payroll, in payment of sales salaries expense for the last half of the month, $14,600. Cashed the check and paid the employees.
		31		(b)		Cash sales for the last half of the month are $58,080 (cost is $34,848).
		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 $61,000), Z. Church, Capital (March 1 beg. bal. is $61,000) and Church Company uses the perpetual inventory system.

Problem 7-1A Part 3

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

Prepare the March 31 trial balance, schedule of accounts receivable and schedule of accounts payable.

Prepare the March 31 schedule of accounts receivable.

Prepare the March 31 schedule of accounts receivable.

Answer 1

	Accounts Receivable										Accounts Payable
02-Mar	To Inventory	13200			By Cash	12936			13-Mar	To Cash	32340	01-Mar	By Inventory	33000
03-Mar	To Inventory	6600			By Discount	264			13-Mar	To Discount	660	03-Mar	By Office supplies	990
10-Mar	To Inventory	3300			By Cash	3234			17-Mar	To Purchase returns	3000	09-Mar	by office equipment	16500
28-Mar	To Inventory	3960			By Discount	66			19-Mar	To Office equipment	495	14-Mar	By Inventory	30000
27-Mar	To Inventory	9900			By Balance C/d	20460			23-Mar	To Cash	26460	16-Mar	By Gabel	1510
		36960				36960			23-Mar	To Discount	540
										To Balance c/d	18505
											82000			82000
	Inventory
01-Mar	To Balance b/d	61000		02-Mar	By Min cho	6600					Cash A/c
01-Mar	To Van Company	33000		03-Mar	By Linda witt	3300				To Long term notes	72000		By Van company	32340
14-Mar	To CD company	30000		10-Mar	By Jovita	1650				To Mincho	12936		By sales	14600
				15-Mar	By Cash sales	42240				to Sales	52800		By cash	26460
				17-Mar	By CD company	1500				to Jovita	3234		By sales	14600
				28-Mar	By Linda witt	1584				To Sales	58080		By balance c/d	111050
				27-Mar	By Jovita	3960					199050			199050
				31-Mar	By Cash sales	34848
					By Balance c/d	28318
		124000				124000

	Trial Balance as on 31/Mar
Particulars	Amt($)		Particulars	Amt($)
Cash	111050	Capital		61000
Stock	61000	Long term notes		72000
Office equip	16005	Accounts payable		18505
Accounts receivable	20460	Sales		147840
Purchases	60000	Discount received		1200
Office supplies	990
Salaries	29200
Discount Allowed	330
Sre supplies	1510
	300545			300545
Trading & Profit & Loss Account
To Opening stock	61000		By Sales	147840
To Purchases	60000		By Closing stock	28318
To gross profit	55158
	176158			176158
To Office supplies	990		By gross profit	55158
To Salaries	29200		By Discount received	1200
To Discount Allowed	330
To Store supplies	1510
To Net Profit	24328
	56358			56358