Listed below are selected transactions completed by RidgeCompany during March of the current year.
Mar 5 Rendered services on account to Quinton Co., Invoice No.92, $3,250.
10 Rendered services on account to Martin Inc., Invoice No. 93,$4,500.
13 Received $5,000 in payment of monthly rent, which was due onMarch 1.
15 Received payment from Quinton Co. for invoice of March 5.
19 Received payment from Martin Inc. for balance due on invoiceof March 10.
20 Received amount due from Thomas Co. on sale made in February,$5,200.
31 Recorded cash from services rendered for cash during themonth, $15,750.
(a) Record the transactions, using the accompanying revenuejournal and cash receipts journal.
(b) Total and rule the revenue and cash receipts journals.
(c) Indicate the method of posting the individual items and thecolumnar totals of the revenue and cash receipts journals in thefollowing manner:
(1) For individual items and totals to be posted to thesubsidiary ledger or not to be posted, insert a check mark in thePosting Reference column or below the totals.
(2) For individual items and totals to be posted to the generalledger, insert the letter "G" (as a substitute for specific accountnumbers) in the Posting Reference column or below the totals.
Listed below are selected transactions completed by RidgeCompany during March of the current year.
Mar 5 Rendered services on account to Quinton Co., Invoice No.92, $3,250.
10 Rendered services on account to Martin Inc., Invoice No. 93,$4,500.
13 Received $5,000 in payment of monthly rent, which was due onMarch 1.
15 Received payment from Quinton Co. for invoice of March 5.
19 Received payment from Martin Inc. for balance due on invoiceof March 10.
20 Received amount due from Thomas Co. on sale made in February,$5,200.
31 Recorded cash from services rendered for cash during themonth, $15,750.
(a) Record the transactions, using the accompanying revenuejournal and cash receipts journal.
(b) Total and rule the revenue and cash receipts journals.
(c) Indicate the method of posting the individual items and thecolumnar totals of the revenue and cash receipts journals in thefollowing manner:
(1) For individual items and totals to be posted to thesubsidiary ledger or not to be posted, insert a check mark in thePosting Reference column or below the totals.
(2) For individual items and totals to be posted to the generalledger, insert the letter "G" (as a substitute for specific accountnumbers) in the Posting Reference column or below the totals.
Related questions
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
