Indicate in the margin beside each transaction the journal the transaction should be recorded in (ex. SJ, PJ, CRJ, CDJ, or GJ)

Dec 1

• Purchased 12,000 shares of its own common stock ($1 par) for $120,000 (check #500 payable to Edwards Corp). The company expects to reissue these shares at a later date.

• Paid weekly cash payroll of $2,500. December 1 is a Friday--$2,000 of salaries were accrued on November 30 and reported appropriately as part of salaries expense on the previous months income statement. There are no withholdings from employees paychecks. (check #501 - #520 payable to various)

• Sold inventory with a gross sales price of $25,000 to Summers, on account. (invoice #12010). Terms 2/15, n/30. Reminder: Wolfpack uses the net method for recording sales discounts.

• Made cash sales of $8,000.

Dec 4

• Received cash payment from Evans for balance owed. (hint: refer to the previous subsidiary ledger detail on page 7 to determine when the original sale to Evans occurred)

• Paid Tarheel Industries invoice for balance owed. (check #521) (hint: refer to the previous subsidiary ledger detail on page 7 to determine when the original purchase from Tarheel occurred)

• Accepted a sales return from Warren for an item having an original gross sales price of $6,000. The original sale to Warren occurred in November with terms 2/15, n/30. Reminder: Wolfpack estimates sales returns at the end of each month.

• After the above return, Warren paid her remaining balance due.

Dec 5

• Paid the November Utilities bill of $5,500 (this was already recognized as an expense in November). (check #522 payable to Progress Energy)

• Specifically wrote off the receivable balance owed by Clayton as uncollectible. This bad debt had been previously estimated.

• Received $15,000 in cash on the accounts receivable from Summers.

Dec 6

• Bought inventory from a new supplier, Bailey Corp (Vendor# 210-25) on credit for the gross amount of $85,000 (invoice #CC1206). Baileys terms for repayment are 3/10, n/30. Reminder: Wolfpack uses the net method for recording purchase discounts.

• Received payment in full from Carroll.

Dec 7

• Returned defective merchandise with a gross cost of $15,000 back to Goodson Corp.

• Sold inventory with a gross sales price of $40,000 to a new customer, on account. The customer is Riley (customer # 110-48, invoice # 12011). Terms 2/15, n/30.

• Paid Goodson the balance still due after the above return. (check #523)

• Received a check for payment in full from Murphy.

Dec 8

• Recorded weekly cash sales of $36,000.

• Paid weekly cash payroll of $2,500 (no taxes were withheld). (check #524-543)

Dec 11

• Paid Pirates, Inc. balance owed. (Check #544).

• Paid Bailey Corp. balance owed. (check #545)

• Bought inventory items from Tarheel Industries on account for the gross amount of $25,000 (invoice #NI1211). Terms 2/30, n/60.

Dec 12

• Received a check from Summers that reduced his balance owed by $15,680.

• Received cash dividends of $5,000 from our investment in Hokie, Inc.

• Sold merchandise with a gross sales price of $24,000 on account to Riley (invoice #12012). Terms 2/15, n/30.

Dec 13

• Bought inventory items from Pirates, Inc. on account for the gross amount of $45,000 (invoice #TH1213). Terms 3/15, n/30.

• Riley returned an item originally purchased on Dec 12 with a gross sales price of $7,000.

• Received a check from Riley for the Dec 7 purchase. Amount received fully satisfied balance owed for the Dec 7 purchase.

Dec 14

• Sold merchandise with a gross sales price of $15,000 on account to Evans (invoice #12013). Terms 2/15, n/30.

• Sold merchandise with a gross sales price of $9,000 on account to Carroll (invoice #12014). Terms 2/15, n/30.

• Returned merchandise with a gross cost of $7,000 back to Tarheel Industries.

Dec 15

• Recorded weekly cash sales of $27,000.

• Paid weekly cash payroll of $2,500. (check #546 - 565)

• Received a check from Riley in full settlement of balance owed.

Dec 18

• Bought office supplies on account for $16,000 from OfficeMin (open a new Accounts Payable in the subsidiary ledger--Vendor # 210-30).

Invoice # is OM1218. OfficeMins terms are n/30.

• Purchased inventory items on account from Bailey Corp. for a gross amount of $25,000 (invoice #CC1218). Terms 3/10, n/30.

• Purchased inventory from a vendor (J. Smith) for $20,000 cash. (check #566)

Dec 19

• Received the December utilities bill (to be paid in January of 20X6) in the amount of $14,000. Special note: Credit the Utilities Payable account for the balance owed.

• The annual dividend of $1.25 per share is declared for all outstanding shares. The dividend will be distributed to shareholders on January 19, 20X6.

Note: There were 100,000 shares outstanding prior to December.

Dec 20

• Paid staff a holiday bonus of $20,000 (record as Salaries Expense). (check #567-586)

• Received a check from Carroll for payment of balance owed.

Dec 21

• Paid Pirates, Inc. balance due. (check #587)

• Sold merchandise with a gross sales price of $20,000 on account to Summers (invoice #12015). Terms 2/15, n/30.

• Purchased land and a building for a combined cost of $450,000 by signing a 2-year, 10%, note with a face value of $450,000. An appraisal shows the land and building have individual fair market values of $325,000 and $175,000, respectively.

Dec 22

• Paid weekly cash payroll of $2,500. (check #588-607)

• Recorded weekly cash sales of $29,000.

Dec 27

• Received $42,000 in cash from the sale of a parcel of its land. The parcel had an original cost of $32,000.

Dec 29

• Paid weekly cash payroll of $2,500. (check #608-627)