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NARRATIVE OF THE DECEMBER TRANSACTIONS NOTE: All transactions from Dec. 3 thru Dec. 24 have already been recorded December 3 Received a check in the

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NARRATIVE OF THE DECEMBER TRANSACTIONS NOTE: All transactions from Dec. 3 thru Dec. 24 have already been recorded December 3 Received a check in the amount of $23,569 from Swanson Brothers Construction in full payment of invoice No. 1120 dated November 26 in the amount of $24,050. 3 Sold sewer and drainage pipe to Beverly's Building Products on account, invoice No. 1201 for $13,150. 3 Purchased copper tubing and fittings from Edward's Plumbing Supplies Inc. on account, purchase order No. 315 for $24,320, terms n/60. 3 Issued check No. 1580 for $26,400 to Oxenford Copperworks in settlement of the balance owed on purchase order No. 280 3 A court notice indicates that Iwanaga Plumbing and Heating is bankrupt and payment of its account improbable; the president orders the account to be written off as a bad debt (invoice No. 780). 3 Sold bathroom fixtures to Bilder Construction Company on account, invoice No.1202 for $14,900 4 Received a check in the amount of $49,294 from The Potts Company in full payment of invoice No. 1128 dated November 27 for $50,300. 4 Sold plumbing supplies and plastic pipe to Coconino Contractors, Inc. on account, invoice No. 1203 for $10,300. 4 Issued check No. 1581 for $810 to Standard Oil Co. in payment of gas, oil, and truck repair from Tierney's Standard Service 5 Issued check No. 1582 for $9,900 to Khatan Steel Corp. in full settlement of purchase order No. 312 for $10,000. 5 Issued check No. 1583 for $10,486 to Phoenix Plastics in full payment of Phoenix's invoice dated November 28 in the amount of $10,700, for purchase order No. 313, terms 2/10, n/30 5 Received a check in the amount of $72,863 from Rankin Plumbing Corp. in full payment of invoice No. 1129 dated November 28 for $74,350. 6 Sold cast pipe to Trudy's Plumbing on account, invoice No. 1204 for $29,300. 6 Received a check in the amount of $27,800 from Coconino Contractors, Inc. in full payment of invoice No. 1091 dated October 20. 6 Purchased bathroom fixtures from Phoenix Plastics, on account, purchase order No. 316 for $52,700 terms 1/10,n/30. 7 Received a check in the amount of $29,000 from Boecker Builders in partial payment of balance outstanding covering invoice Nos. 1050 and 1071. 7 Issued check No. 1584 for $600 to Scooter Gordon for lettering and sign painting on some delivery trucks. 17 Purchased plumbing materials from Smith Pipe Company on account, purchase order No. 317 for $60,800 terms 1/15, n/60. 18 Sold drain tile, plastic pipe, and copper tubing to A & B Hardware on account, invoice No. 1208 for $7.920 18 Sold fixtures and materials to Coconino Contractors, Inc. on account, invoice No. 1209 for $42,780 19 An invoice in the amount of $1,021 was received from S. White Trucking Company for transportation-in on purchase order No. 317 and paid by issuing check No. 1591. 19 Received a check in the amount of $33,173 from Trudy's Plumbing in payment of invoice No. 1205. 20 Purchased office supplies from the Pen & Pad, issuing check No. 1592 in the amount of $1,360. (Note: Debit asset account). 20 Purchased a new Faith computer for $6,100 from Business Basics, Inc, purchase order No. 318, paying $600 down through Check No. 1593 with the balance due in thirty days (n/30). The computer has an estimated life of five years with a salvage value of $1,300. Use subsidiary account No. 16. Journalize the entire entry in the cash disbursements journal. 21 Purchased bathroom and kitchen fixtures from Phoenix Plastics, on account, purchase order No. 319 for $48,330, terms 1/10,n/30. 21 Received a bill from DeKalb Transport for $2,300 for transportation-in costs incurred during the last 30 days, terms n/30. 24 The payroll summary for the biweekly pay period ended Friday, December 21, con- tained the following information: Delivery and warehouse wages. $5,770 FICA taxes withheld 415 Federal income taxes withheld 1,067 State income taxes withheld 225 Net pay $4.063 Employer's payroll taxes: FICA tax ..... $ 415 Federal unemployment tax... State unemployment tax. Issued check No. 1594 for the amount of the net pay and deposited it in the payroll bank account. Individual payroll checks were then prepared for distribution to the biweekly employees on Monday, December 24. NOTE: Transactions up to this point have been recorded. At this point you became con troller and are responsible for recording all further transactions 26 The board of directors voted to purchase 1,000 shares of its own stock from stockholder Dionne Schivone at $83 per share and issued check No. 1595 in payment. Stock repur- chases are recorded at cost. Rockford is purchasing these shares because Ms. Schivone had been a valuable employee. 26 The board of directors declared a $1.90 per-share cash dividend payable on January 14 to stockholders of record on December 26 (after purchase of stock). $14.000 overdue accounts receivable invoice No. 1119) balance to a 9% note due six services involved in the acquisition of the adjacent parcel of land; check No. 1596 is checks can be distributed before the year-end; the details are as follows: months from today. issued in payment 31 Because for some time the petty cash fund has been smaller than required for monthly expenditures, the fund is increased by $75 by cashing check No. 1602 and placing the 31 The payroll summary for the monthly paid employees is submitted so that December 26 poesident informs you that Beverly's Building Products agrees to convert the 27 of half-acre parcel of land adjacent to the building is acquired in exchange for 600 shares diately as an outside storage lot and parking lot. of unissued common stock. The land has bataie lae of 554.000 and will be used imme- 27 Sold pipe and plumbing materials to Boecker Builders on account, invoice No. 1210 for 28 Listed check No. 1597 in the amount of $500 to the Northern Star for advertisement run in the home building supplement of December 15. 28 Issued check No. 1598 in the amount of $925 to Standard Oil Co. in payment of gas, oil, and truck repairs from Standard Oil Co. (use Freight-out) 28 Purchased copper and cast iron pipe from Oxenford Copperworks on account, purchase order No. 320 for $68,940, terms 1/10,n/30. 28 Check No. 1999 for $15,000 is issued to the bond sinking fund trustee, Chicago Trust Co., for deposit in the sinking fund (use Other Assets). 28 Sold plumbing supplies to Swanson Brothers Construction on account, invoice No. 1211 for $29,650 31 Received a check for $24.730 from Boecker Builders in payment of invoice No. 1207. 31 Issued check No. 1600 for $60,192 to Smith Pipe Company in payment of purchase order No. 317. 31 The custodian of the petty cash fund submits the following receipts for reimbursement and reports a cash-on-hand count of $8. Postage stamps used $68 United Parcel (freight-out) 23 CO.D. postage (freight-in) 51 Check No. 1601 is issued and cashed to reimburse the fund. 31 Sold an electric truck-lift to Leila Stierman Co. for $2,500 cash. The original cost was $7,900 with salvage value of $900, a life of 10 years, and accumulated depreciation recorded through 12/31/17 of $4,550. The straight-line method is used. (Note: the company follows the practice of recording a half year's depreciation in the year of expense up to date in the general joumal. Then journalize the entire entry for the sale in the cash receipts journal 31 Sold bathroom fixtures and plumbing supplies to Trudy's Plumbing on account, invoice No. 1212 for $55,770. money in the petty cash fund. 13 account. Individual payroll checks were prepared for distribution to all monthly employees by the end of the day. Office and administrative salaries. Federal income taxes withheld State income taxes withheld FICA taxes withheld $45,900 7,696 1,517 3320 $33.367 Net pay......... Issued check No. 1603 for the amount of the net pay and deposited it in the payroll bank $3,320 Employer's payroll taxes: FICA tax (all office and administrative)...... Federal unemployment tax.. State unemployment tax 31 Cash sales since December 14 total $39,980. INSTRUCTIONS 1. Make the entries in the appropriate journals for December 26 through December 31

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