Church Company completes these transactions and events during March of the current year (terms for all its credit sales are 2/10, n/30). March 1 Purchased $43,600 of merchandise from Van Industries, terms 2/15, n/38. March 2 Sold merchandise on credit to Min Cho, Invoice Number 854, for $16,800 (cost is $8,400). March 3 Purchased $1,230 of office supplies on credit from Gabel Company, terms n/30. March 3 Sold merchandise on credit to Linda Witt, Invoice Number 855, for $10,200 (cost is $5,800). March 6 Borrowed $82,000 cash from Federal Bank by signing a long-term note payable. March 9 Purchased $21,850 of office equipment on credit from Spell Supply, terms n/30. March 10 Sold merchandise on credit to Jovita Albany, Invoice Number 856, for $5,600 (cost is $2,900). March 12 Received payment from Min Cho for the March 2 sale less the discount of $336. March 13 Sent Van Industries Check Number 416 in payment of the March 1 invoice less the discount of $872. March 13 Received payment from Linda Witt for the March 3 sale less the discount of $284. March 14 Purchased $32,625 of merchandise from the CD Company, terms 2/10, n/30. March 15 Issued Check Number 417 for $18,380, payee is Payroll, in payment of sales salaries expense for the first half of the month. March 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. March 16 Purchased $1,770 of store supplies on credit from Gabel Company, terms n/30. March 17 Returned $2,425 of unsatisfactory merchandise purchased on March 14 to CD Company. Church reduces accounts payable by amount. March 19 Returned $630 of office equipment purchased on March 9 to Spell Supply. Church reduces accounts payable by that amount March 20 Received payment from Jovita Albany for the sale of March 10 less the discount of $112. March 23 Issued Check Number 418 to CD Company in payment of the March 14 purchase less the March 17 return and the discount of $684. March 27 Sold merchandise on credit to Jovita Albany, Invoice Number 857, for $14,910 (cost is $7,228). March 28 Sold merchandise on credit to Linda Witt, Invoice Number 858, for $4,315 (cost is $3,280). March 31 Issued Check Number 419 for $18,380, payee is Payroll, in payment of sales salaries expense for the last half of the month. March 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.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Church Company completes these transactions and events during March of the current year (terms for all its credit sales are 2/10,
n/30).
March 1 Purchased $43,600 of merchandise from Van Industries, terms 2/15, n/30.
March 2 Sold merchandise on credit to Min Cho, Invoice Number 854, for $16,800 (cost is $8,400).
March 3 Purchased $1,230 of office supplies on credit from Gabel Company, terms n/30.
March 3 Sold merchandise on credit to Linda Witt, Invoice Number 855, for $10,200 (cost is $5,800).
March 6 Borrowed $82,000 cash from Federal Bank by signing a long-term note payable.
March 9 Purchased $21,850 of office equipment on credit from Spell Supply, terms n/30.
March 10 Sold merchandise on credit to Jovita Albany, Invoice Number 856, for $5,600 (cost is $2,900).
March 12 Received payment from Min Cho for the March 2 sale less the discount of $336.
March 13 Sent Van Industries Check Number 416 in payment of the March 1 invoice less the discount of $872.
March 13 Received payment from Linda Witt for the March 3 sale less the discount of $204.
March 14 Purchased $32,625 of merchandise from the CD Company, terms 2/10, n/30.
March 15 Issued Check Number 417 for $18,300, payee is Payroll, in payment of sales salaries expense for the first half of the
month.
March 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.
March 16 Purchased $1,770 of store supplies on credit from Gabel Company, terms n/30.
March 17 Returned $2,425 of unsatisfactory merchandise purchased on March 14 to CD Company. Church reduces accounts payable by
amount.
March 19 Returned $630 of office equipment purchased on March 9 to Spell Supply. Church reduces accounts payable by that amount
March 20 Received payment from Jovita Albany for the sale of March 10 less the discount of $112.
March 23 Issued Check Number 418 to CD Company in payment of the March 14 purchase less the March 17 return and the discount of
$604.
March 27 Sold merchandise on credit to Jovita Albany, Invoice Number 857, for $14,910 (cost is $7,220).
March 28 Sold merchandise on credit to Linda Witt, Invoice Number 858, for $4,315 (cost is $3,280).
March 31 Issued Check Number 419 for $18,300, payee is Payroll, in payment of sales salaries expense for the last half of the
month.
March 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.
1
March 01
Inventory
Accounts payable
2
March 02
Accounts receivable
Sales
3
March 03
Office supplies
Accounts payable
4
March 03
Accounts receivable
Sales
5
March 06
Cash
Long-term notes payable
6
March 09
Office equipment
Accounts payable
Accounts receivable
7
March 10
Sales
8
March 12
Cash
Accounts receivable
9
March 13
Cash
10
March 13
Accounts receivable
Sales
11
March 14
Inventory
Accounts payable
12
March 15
Cash
13
March 15
Cash
Sales
× ☑
43,600
43,600
16,800x
16,800
1,230
1,230
16,200 x
16,200
82,000
82,000
×
21,858
21,858
× ☑
× ×
5,600
5,600
16,464
16,464
872
872
16,200 x
16,200
32,625
32,625
18,300
18,300
34,688
34,688
14
March 16
Store supplies
1,770
Accounts receivable
1,770
15
March 17
16
March 19
Accounts payable
March 20
Accounts receivable
Sales
2,425
630
630
5,600
5,600x
18
March 23
32,021 x
Accounts payable
32,021
19
March 27
Accounts receivable
Sales
20
March 28
Accounts receivable
Sales
21
March 31
Cash
22
March 31
Cash
Sales
23
March 31
Entered in special journal
☑
× ×
☑
14,910
14,910 x
4,135
4,135x
18,308
18,308 x
38,188
37,188
Transcribed Image Text:Church Company completes these transactions and events during March of the current year (terms for all its credit sales are 2/10, n/30). March 1 Purchased $43,600 of merchandise from Van Industries, terms 2/15, n/30. March 2 Sold merchandise on credit to Min Cho, Invoice Number 854, for $16,800 (cost is $8,400). March 3 Purchased $1,230 of office supplies on credit from Gabel Company, terms n/30. March 3 Sold merchandise on credit to Linda Witt, Invoice Number 855, for $10,200 (cost is $5,800). March 6 Borrowed $82,000 cash from Federal Bank by signing a long-term note payable. March 9 Purchased $21,850 of office equipment on credit from Spell Supply, terms n/30. March 10 Sold merchandise on credit to Jovita Albany, Invoice Number 856, for $5,600 (cost is $2,900). March 12 Received payment from Min Cho for the March 2 sale less the discount of $336. March 13 Sent Van Industries Check Number 416 in payment of the March 1 invoice less the discount of $872. March 13 Received payment from Linda Witt for the March 3 sale less the discount of $204. March 14 Purchased $32,625 of merchandise from the CD Company, terms 2/10, n/30. March 15 Issued Check Number 417 for $18,300, payee is Payroll, in payment of sales salaries expense for the first half of the month. March 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. March 16 Purchased $1,770 of store supplies on credit from Gabel Company, terms n/30. March 17 Returned $2,425 of unsatisfactory merchandise purchased on March 14 to CD Company. Church reduces accounts payable by amount. March 19 Returned $630 of office equipment purchased on March 9 to Spell Supply. Church reduces accounts payable by that amount March 20 Received payment from Jovita Albany for the sale of March 10 less the discount of $112. March 23 Issued Check Number 418 to CD Company in payment of the March 14 purchase less the March 17 return and the discount of $604. March 27 Sold merchandise on credit to Jovita Albany, Invoice Number 857, for $14,910 (cost is $7,220). March 28 Sold merchandise on credit to Linda Witt, Invoice Number 858, for $4,315 (cost is $3,280). March 31 Issued Check Number 419 for $18,300, payee is Payroll, in payment of sales salaries expense for the last half of the month. March 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. 1 March 01 Inventory Accounts payable 2 March 02 Accounts receivable Sales 3 March 03 Office supplies Accounts payable 4 March 03 Accounts receivable Sales 5 March 06 Cash Long-term notes payable 6 March 09 Office equipment Accounts payable Accounts receivable 7 March 10 Sales 8 March 12 Cash Accounts receivable 9 March 13 Cash 10 March 13 Accounts receivable Sales 11 March 14 Inventory Accounts payable 12 March 15 Cash 13 March 15 Cash Sales × ☑ 43,600 43,600 16,800x 16,800 1,230 1,230 16,200 x 16,200 82,000 82,000 × 21,858 21,858 × ☑ × × 5,600 5,600 16,464 16,464 872 872 16,200 x 16,200 32,625 32,625 18,300 18,300 34,688 34,688 14 March 16 Store supplies 1,770 Accounts receivable 1,770 15 March 17 16 March 19 Accounts payable March 20 Accounts receivable Sales 2,425 630 630 5,600 5,600x 18 March 23 32,021 x Accounts payable 32,021 19 March 27 Accounts receivable Sales 20 March 28 Accounts receivable Sales 21 March 31 Cash 22 March 31 Cash Sales 23 March 31 Entered in special journal ☑ × × ☑ 14,910 14,910 x 4,135 4,135x 18,308 18,308 x 38,188 37,188
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