Question
01/03: Strong Construction purchases 2,000 bd. ft on account for $3,200 01/04: The Manager pays BWLC for December 3 purchases (27,000) 01/04: Beacon Personnel are
01/03: Strong Construction purchases 2,000 bd. ft on account for $3,200 01/04: The Manager pays BWLC for December 3 purchases (27,000) 01/04: Beacon Personnel are broke after the holidays. The manager pays accrued salaries ($5,248) 01/04: A large person driving an AZCO two truck drives up to the office. The office manager hastily. writes out a check for January's rent ($1,000) 01/04: Joe Strong of Strong Construction calls to complain that 600 bd ft. of framing lumber shipped in a recent order was defective. The office manager investigates the problem and agrees to grant a Sales Allowance of $200. 01/04: John Q. Homeowner has realized that he miscalculated the amount of lumber he needed for his home improvement project and asks the store manager if he can return 200 bd ft. of framing lumber. Beacon accepts the return. 01/04: Beacon announces a revision to its credit policies. All account holders will be allowed a 2% discount if they pay their within 10 days. Other balances will continue to be due in 30 days. 01/10: Beacon receives a check from Strong for full payment of the Jan 3 purchase. 01/10: Beacon has recently negotiated a $10,000 increase in its credit limit with BWLC and purchases 20,000 board feet of inventory, for $18,000. It pays $4,000 cash and charges the remaining $14,000. BWLC will grant a 2% discount for bills paid within 10 days. 01/10: Solid Construction has recently been awarded a large new job and its purchasing agent negotiates a volume discount on the purchase of 20,000 bd. ft. Solid will pay $1.50/bf. ft. Solid charges the amount to its account. 01/17: Beacon receives a check from Solid in full payment of its Jan 10 purchase. 01/17: The Beacon Office Manager meets with a representative of the BWLC to discuss the defective lumber which Beacon had purchased from BWLC and sold to Solid Construction. BWLC agrees to a Purchase Return and Allowance of $112.50. BWLC will to apply this to purchases made in January. 01/17: Beacon mails a check to BWLC to pay the balance due on its purchase of 20,000 bd. ft. 01/20: Beacon purchases 100 bd ft. of Purple Heart, an exotic rain forest hardwood. Beacon's cost is $6.00 bd ft. and in addition, it pays a $35 shipping charge. Beacon writes two checks for this purchase. 01/21: Beacon ships 100 bd. ft. of Purple Heart to the Cool Construction Co. a new account. Beacon invoices Cool $1,019.40 for the purchase, which includes $1,000 for the lumber and $19.40 for a UPS charge that Beacon pays at the time of the order is picked up at its warehouse. 01/25: Dividends declared in December were paid on the day. 01/26: Beacon purchases 30,000 board feet of inventory at $.90/bd ft. paying $14,000 in cash and charging the balance of the purchases amount to its BWLC account. 01/31: During the month of January Beacon pays wages expense of $6,232 01/31: Beacon remits the sales tax it collected. $3,782. Please provide the following: Post all journal entries for the month of January Prepare a Trial Balance, Income Statement, Retained Earnings Statement, and Balance Sheet for the month of January. Journalize and posting closing entries.
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