Please help on income statements, adjusting entries etc

cash an On this day Beacon sells 3 acres of land for $15,000. It receives $5,000 in onhand amortgage note for the rest The note carries interest at 10% and the 15 al amount is due in 8 years. Assume that all the land had a uniform cost per acre when it was purchased by Beacon The office manager purchases $250 worth of office supplies. Use account Dec 18 #728 (Office Supplies Expense) to record the purchase. Beacon pays cash Girl Scouts sneak into the lot Friday night and start a campfire. The fire gets embarrassment to the Girl Scouts, the company does not file charges with the Det of control and destroys $1,800 worth of inventory. (In order to avoid polic e or make an insurance claim. Instead it asks the Girl Scouts to perform 200 hours of community service.) ne 2 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 should be able to use this information to calculate the COGS entry.) Dec 31 By the end of the month Beacon had collected cash payments from its acount all merchandise at a uniform selling price of $1.60 per board foot. (Hint you holders of $36,700. DO THE FOLLOWING: END OF THE MONTH OF DECEMBER. 1) Before posting any journal entries for December make sure that the General Ledger includes all information from November 2) When you have completed step () post journal entries for the month of December. Prepare a trial balance, using the first two columns of the worksheet for December (see below). When you have prepared adjusting journal entries for all the items listed below, proceed to step (4) 3) Complete steps (1) and (2) above before journalizing and posting adjusting entries 4) Recall from your classroom discussions and the study of the textbook that a 10 column worksheet is an optional workpaper that accountants sometimes find to be a useful aid in the preparation of financial statements. Your instructor may require you to complete a worksheet in addition to preparing financial statements. There are blank worksheets at the end of this booklet 5) Prepare, in good form, an income statement, statement of retained earnings, and a balance sheet for the month of December. This manual does NOT contain workpapers for these financial statements- by now, you should be familiar with the form and content of these statements, and be able to prepare them on your own. 6) Prepare and post closing entries for the month of December Required Adjusting Entries for December Al The two yard personnel and the office manager worked on Dec. 29, 30 and 31. On December 30h they were paid for work through the 28th. The yard personnel are paid $12.00 per hour and the office manager receives $17.00 per hour. All employees work an eight-hour day A review of the office supplies locker shows that $180 worth of supplies are on hand A2 Compute and record the insurance expense for the month of December Assume that the insurance coverage expires at an even rate throughout the ear. Refer to the general journal for Dec 1 and verify that the expense should equal $100 A3 Compute and record depre that usage will occur at an even rate over the life of the machine, so that 1/120th of its original cost will be depreciated each month. ciation on the forklift acquired on Dec 1. Assume Compute and record depreciation on the office equipment acquired on Dec 1 Use the same method for this equipment as you did for the forklift. How will the shorter life (five years for the office equipment as opposed to ten for the forklift) affect your calculation? A5 Compute and record the advertising expense for the month of December. As always, pay careful attention to all dates. A6 A7 Compute and record the rental revenue from sculptor Mark Peltz. Compute and record the accrued interest revenue on the note received as partial payment for the 3 acres of land sold earlier in the month. A8 Compute and record all the accrued interest expense on (a) the note given to the investor who supplied 20 acres of land on Nov. 15 and (b) the forklift. Use a 360-day year and verify a total of $737.50 for both notes. A9 The office manager realizes that the check written for office supplies was made for $200, and not $250 as initially recorded. The cash account and supplies expense account should be corrected to show their proper amounts CX BEACON LUMBER, MONTH OF DECEMBER Dec 1 Beacon purchases a general liability insurance policy for $1,200, paying cash Dec I Beacon purchases a forklift for $10,000, paying half in cash and half with a S The term of the policy is one year, from Dec 1, 2009 through Nov 30, 2010 The forklift is a well made American Machine & Found ry yea r, 12% note product, and it is expected to last for 10 years Beacon purchases office equipment for $2,000, paying cash. The equipment has an expected life of 5 years Dec 1 Beacon purchases 30,000 bd. ft. of lumber from BWLC for $27,000. A gain, Dec 3 after reaching its credit limit it paid cash for the remaining amount. On this day Beacon sent a check to pay for December's rent for the office trailer Dec 3 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 Dec 6 Dec 6 Beacon pays $300 for three months of advertising on a web site. The ad will run from Dec 15, 2009 through March 15, 2010. The sister of investor #2 purchases the balance of investor #2's Beacon stock for $3,000 (see General Journal, Nov 15). Dec 6 Dec 7 Beacon pays the lawyer's 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 4 months rent The lease will start on Dec 15 cash an On this day Beacon sells 3 acres of land for $15,000. It receives $5,000 in onhand amortgage note for the rest The note carries interest at 10% and the 15 al amount is due in 8 years. Assume that all the land had a uniform cost per acre when it was purchased by Beacon The office manager purchases $250 worth of office supplies. Use account Dec 18 #728 (Office Supplies Expense) to record the purchase. Beacon pays cash Girl Scouts sneak into the lot Friday night and start a campfire. The fire gets embarrassment to the Girl Scouts, the company does not file charges with the Det of control and destroys $1,800 worth of inventory. (In order to avoid polic e or make an insurance claim. Instead it asks the Girl Scouts to perform 200 hours of community service.) ne 2 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 should be able to use this information to calculate the COGS entry.) Dec 31 By the end of the month Beacon had collected cash payments from its acount all merchandise at a uniform selling price of $1.60 per board foot. (Hint you holders of $36,700. DO THE FOLLOWING: END OF THE MONTH OF DECEMBER. 1) Before posting any journal entries for December make sure that the General Ledger includes all information from November 2) When you have completed step () post journal entries for the month of December. Prepare a trial balance, using the first two columns of the worksheet for December (see below). When you have prepared adjusting journal entries for all the items listed below, proceed to step (4) 3) Complete steps (1) and (2) above before journalizing and posting adjusting entries 4) Recall from your classroom discussions and the study of the textbook that a 10 column worksheet is an optional workpaper that accountants sometimes find to be a useful aid in the preparation of financial statements. Your instructor may require you to complete a worksheet in addition to preparing financial statements. There are blank worksheets at the end of this booklet 5) Prepare, in good form, an income statement, statement of retained earnings, and a balance sheet for the month of December. This manual does NOT contain workpapers for these financial statements- by now, you should be familiar with the form and content of these statements, and be able to prepare them on your own. 6) Prepare and post closing entries for the month of December Required Adjusting Entries for December Al The two yard personnel and the office manager worked on Dec. 29, 30 and 31. On December 30h they were paid for work through the 28th. The yard personnel are paid $12.00 per hour and the office manager receives $17.00 per hour. All employees work an eight-hour day A review of the office supplies locker shows that $180 worth of supplies are on hand A2 Compute and record the insurance expense for the month of December Assume that the insurance coverage expires at an even rate throughout the ear. Refer to the general journal for Dec 1 and verify that the expense should equal $100 A3 Compute and record depre that usage will occur at an even rate over the life of the machine, so that 1/120th of its original cost will be depreciated each month. ciation on the forklift acquired on Dec 1. Assume Compute and record depreciation on the office equipment acquired on Dec 1 Use the same method for this equipment as you did for the forklift. How will the shorter life (five years for the office equipment as opposed to ten for the forklift) affect your calculation? A5 Compute and record the advertising expense for the month of December. As always, pay careful attention to all dates. A6 A7 Compute and record the rental revenue from sculptor Mark Peltz. Compute and record the accrued interest revenue on the note received as partial payment for the 3 acres of land sold earlier in the month. A8 Compute and record all the accrued interest expense on (a) the note given to the investor who supplied 20 acres of land on Nov. 15 and (b) the forklift. Use a 360-day year and verify a total of $737.50 for both notes. A9 The office manager realizes that the check written for office supplies was made for $200, and not $250 as initially recorded. The cash account and supplies expense account should be corrected to show their proper amounts CX BEACON LUMBER, MONTH OF DECEMBER Dec 1 Beacon purchases a general liability insurance policy for $1,200, paying cash Dec I Beacon purchases a forklift for $10,000, paying half in cash and half with a S The term of the policy is one year, from Dec 1, 2009 through Nov 30, 2010 The forklift is a well made American Machine & Found ry yea r, 12% note product, and it is expected to last for 10 years Beacon purchases office equipment for $2,000, paying cash. The equipment has an expected life of 5 years Dec 1 Beacon purchases 30,000 bd. ft. of lumber from BWLC for $27,000. A gain, Dec 3 after reaching its credit limit it paid cash for the remaining amount. On this day Beacon sent a check to pay for December's rent for the office trailer Dec 3 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 Dec 6 Dec 6 Beacon pays $300 for three months of advertising on a web site. The ad will run from Dec 15, 2009 through March 15, 2010. The sister of investor #2 purchases the balance of investor #2's Beacon stock for $3,000 (see General Journal, Nov 15). Dec 6 Dec 7 Beacon pays the lawyer's 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 4 months rent The lease will start on Dec 15