.

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 By the end of the month Beacon had collected cash payments from its account

holders of $37,600.

Journalize adjusting entries