I'm needing some help with these journal entries!
The necessary December numbers:
Dec 3 (for Jan 4 entry) - $10,000 was charged to accounts payable
Dec Dividends (for Jan 25 entry) - $2000 in dividends payable
Dec Sales Tax (for Jan 31 entry) - $289 in sales tax payable
BEACON LUMBER, MONTH OF JANUARY Jan 3 Strong Construction purchases 2,000 bd. ft. on account for $3,200 Jan 4 The manager pays the BWLC for December 3 purchases. Jan 4 Beacon personnel are broke after the holidays. The manager pays accrued salaries from December. Jan 4 A person driving an AZCO tow truck drives up to the office. The office manager hastily writes out a check for January's rent. Jan 4 Joe Strong of Strong Construction calls to complain that 600bd. 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. See CH 5 for Sales Returns and Allowances. Jan 4 Beacon announces a revision to its credit policies. All account holders will be allowed a 2% discount if they pay their bills within 10 days. Other balances will continue to be due in 30 days. Jan 10 Beacon receives a check from Strong for full payment of the Jan 3purchase. Jan 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. Jan 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 / bd. ft. Solid charges the amount to its account. Jan 17 Beacon receives a check from Solid in full payment of its Jan 10 purchase. Jan 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 Strong Construction. BWLC agrees to a Purchase Return and Allowance of $112. BWLC will allow Beacon to apply this to purchases made in January. Jan 17 Beacon mails a check to BWLC to pay the balance due on its purchase of 20,000 bd. ft. Jan 20 Beacon purchases 100bd. ft. of Purple Heart, an exotic rainforest 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. Jan 21 Beacon ships 100 bd. ft. of Purple Heart to the Cool Construction Co., a new account. Beacon invoices Cool $1,019.00 for the purchase, which includes $1,000 for the lumber and $19.00 for a UPS charge that Beacon pays at the time the order is picked up at its warehouse. Jan 25 Dividends declared in December were paid on this day. Jan 26 Beacon purchases 30,000 board feet of inventory at $.90/bd. ft. paying $14,000 in cash and charging the balance of the purchase amount to its BWLC account. Jan 31 During the month of January Beacon pays wages expense of \$6,232. Jan 31 Beacon remits the sales tax it collected. (Hint: you should be able to determine the amount of the remittance from the general ledger account for sales tax payable.) ADJUSTING ENTRIES AND STATEMENT PREPARATION A1 A physical inventory of office supplies showed that $70 worth of office supplies remained on hand. A2 Compute and record the monthly insurance expense. A3 Compute and record monthly depreciation expense for the forklift. A4 Compute and record monthly depreciation expense for the office equipment. A5 Compute and record monthly advertising expense. A6 Compute and record the monthly rental income from Mark Peltz. A7 Compute and record the monthly interest revenue from the note received in connection with the sale of 3 acres of land on December 15. A8 Compute and record the monthly interest expense on the note given in connection with the acquisition of land on November 15, and the forklift acquired Dec 1. A9 There are two days of accrued salary and wage expense for the month of January
