Question

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.

GENERAL LEDGER
Cash					Accounts Receivable
Date	Debit	Credit	Balance		Date	Debit	Credit	Balance
Inventory					Office Supplies
Date	Debit	Credit	Balance		Date	Debit	Credit	Balance
Mar.01
Store Supplies					Office Equipment
Date	Debit	Credit	Balance		Date	Debit	Credit	Balance
Accounts Payable					Long-Term Notes Payable
Date	Debit	Credit	Balance		Date	Debit	Credit	Balance
Z. Church, Capital					Sales
Date	Debit	Credit	Balance		Date	Debit	Credit	Balance
Mar.01
Sales Discounts					Cost of Goods Sold
Date	Debit	Credit	Balance		Date	Debit	Credit	Balance
					ACCOUNTS RECEIVABLE LEDGER
Sales Salaries Expense					Jovita Albany
Date	Debit	Credit	Balance		Date	Debit	Credit	Balance
Min Cho					Linda Witt
Date	Debit	Credit	Balance		Date	Debit	Credit	Balance
ACCOUNTS PAYABLE LEDGER
CD Company					Gabel Company
Date	Debit	Credit	Balance		Date	Debit	Credit	Balance
Spell Supply				Van Industries
Date	Debit	Credit	Balance	Date	Debit	Credit	Balance