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Bishop Company completes these transactions and events during

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Bishop 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 $42,600 of merchandise from Soy Industries, invoice dated March 1, terms 2/15, n/30.
2 Sold merchandise on credit to Min Cho, Invoice No. 854, for $15,800 (cost is $7,900).
3 Purchased $1,120 of office supplies on credit from Stacy Company, invoice dated March 3, terms n/10 EOM.
3 Sold merchandise on credit to Lance Snow, Invoice No. 855, for $9,200 (cost is $4,600).
6 Borrowed $72,000 cash from Federal Bank by signing a long-term note payable.
9 Purchased $20,850 of office equipment on credit from Tells Supply, invoice dated March 9, terms n/10 EOM.
10 Sold merchandise on credit to Taylor Few, Invoice No. 856, for $4,600 (cost is $2,300).
12 Received payment from Min Cho for the March 2 sale less the discount.
13 Sent Soy Industries Check No. 416 in payment of the March 1 invoice less the discount.
13 Received payment from Lance Snow for the March 3 sale less the discount.
14 Purchased $31,625 of merchandise from the JW Company, invoice dated March 13, terms 2/10, n/30.
15 Issued Check No. 417, payable to Payroll, in payment of sales salaries expense for the first half of the month, $15,900. Cashed the check and paid the employees.
15 Cash sales for the first half of the month are $164,680 (cost is $138,000). (Cash sales are recorded daily, but are recorded only twice here to reduce repetitive entries.)
16 Purchased $1,670 of store supplies on credit from Stacy Company, invoice dated March 16, terms n/10 EOM.
17 Received a $2,425 credit memorandum from JW Company for the return of unsatisfactory merchandise purchased on March 14.
19 Received a $630 credit memorandum from Tells Supply for office equipment received on March 9 and returned for credit.
20 Received payment from Taylor Few for the sale of March 10 less the discount.
23 Issued Check No. 418 to JW Company in payment of the invoice of March 13 less the March 17 return and the discount.
27 Sold merchandise on credit to Taylor Few, Invoice No. 857, for $13,910 (cost is $6,220).
28 Sold merchandise on credit to Lance Snow, Invoice No. 858, for $5,315 (cost is $2,280).
31 Issued Check No. 419, payable to Payroll, in payment of sales salaries expense for the last half of the month, $15,900. Cashed the check and paid the employees.
31 Cash sales for the last half of the month are $174,590 (cost is $143,000).
31 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.

Instructions:

Assume the following ledger account amounts Inventory (March 1 beg. bal. is $300,000), M. Bishop, Capital (March 1 beg. bal. is $300,000). Assume that Bishop Company uses the perpetual inventory system.

Enter the transactions in a sales journal.
Enter the transactions in a purchases journal.
Enter the transactions in a cash receipts journal.
Enter the transactions in a cash disbursements journal.
Enter the transactions in a general journal.
Post the transactions in a general ledger.
Prepare a trial balance of the general ledger. prove the accuracy of the subsidiary ledgers by preparing
schedules of both accounts receivable and accounts payable.

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