BEACON LUMBER, MONTH OF DECEMBER TRANSACTIONS

Dec 1 Beacon purchases a general liability insurance policy for $1,200, paying cash.

The term of the policy is one year, from Dec 1, 20X1 through Nov 30, 20X2.

Dec 1 Beacon purchases a forklift for $10,000, paying half in cash and half with a 5

year, 12% note. The forklift is a well-made American Machine & Foundry

product, and it is expected to last for 10 years.

Dec 1 Beacon purchases office equipment for $2,000, paying cash. The equipment

has an expected life of 5 years.

Dec 3 Beacon purchases 30,000 bd. ft. of lumber from BWLC for $27,000. Again,

after reaching its credit limit it paid cash for the remaining amount.

Dec 3 Beacon sent a check to pay for December's rent ($200) for the office

trailer.

Dec 6 Beacon signs a contract with SCORE Construction to have a warehouse built

on its property. The warehouse will cost $20,000. Beacon will pay SCORE

by issuing $10,000 worth of stock, paying $5,000 in cash and issuing a note

for the balance. HintHas A.L.O.E. been impacted?

Dec 6 Beacon pays $300 for three months of advertising on a web site. The ad will

run from Dec 15, 20X1 through March 15, 20X2.

Dec 6 The sister of investor #2 purchases the balance of investor #2s Beacon stock

for $3,000 (see General Journal, Nov 15). Hintremember we are thinking about ALOE from the perspective of the corporation.

Dec 7 Beacon pays the lawyers bill received on Nov 4.

Dec 15 Mark Peltz, a local sculptor, agrees to rent 1 acre of land at the rear of

Beacon's lot to use as an outdoor studio. He pays $600 for four months rent.

The lease will start on Dec 15.

Dec 15 Beacon sells 3 acres of land for $15,000. It receives $5,000 in

cash and a mortgage note for the rest. The note carries interest at 10% and the

principal amount is due in 8 years. Assume that all the land had a uniform cost

per acre when it was purchased by Beacon.

Dec 18 The office manager purchases $250 worth of office supplies.

Beacon pays cash.

Dec 29 Girl Scouts sneak into the lot Friday night and start a campfire. The fire gets

out of control and destroys $1,800 worth of inventory. (To avoid

embarrassment to the Girl Scouts, the company does not file charges with the

police or make an insurance claim. Instead it asks the Girl Scouts to perform

200 hours of community service.) For accounting purposes, this would be considered a loss.

Dec 29 The Board of Directors declares a cash dividend of $.05 per share, payable in

January. (Hint: Use the dividends and dividends payable - common stock

accounts.) Verify that the amount of the dividends (the product of the number

of shares issued and the amount per share) equals $2,000.

Dec 30 This is the last payday for the month of December. The next payday will

occur in January. Payroll checks for the month of December total $5,248.

(For the time being you can ignore taxes. We will examine this topic later in

the course.)

Dec 31 Total sales on account for the month of December were $45,600. Beacon sold

all merchandise at a uniform selling price of $1.60 per board foot. (Hint: you

should be able to use this information to calculate the COGS entry by determining how many unites were sold.)

Dec 31 At the end of the month Beacon had collected cash payments from its account

holders of $37,600.

Please help me by providing journal entries for each transaction. thank you .