Question
Please set up a General Journal for the following entries. The following accounts are what's being used: cash accounts receivable notes receivable interest receivable merchandise
Please set up a General Journal for the following entries.
The following accounts are what's being used:
cash
accounts receivable
notes receivable
interest receivable
merchandise inventory
prepaid advertising
office supplies inventory
prepaid insurance
land
equipment
accumulated depreciation- equipment
accounts payable
unearned rent revenue
salaries and wages payable
sales tax payable
interest payable
dividends payable
notes payable
common stock
sales
rent revenue
cost of goods sold
advertising expense
store wages expense
depreciation expense
interest expense
insurance expense
office supplies expense
rent expense
gain on sale of land
interest revenue
losses
.
Thank you.
BEACON LUMBER, MONTH OF DECEMBER Dec Beacon purchases a general liability insurance policy for $1,200, paying cash. The term of the policy is one year, from Dec 1, 2009 through Nov 30, 2010. Dec Beacon purchases a forklift for S10,000, paying half in cash and half with a 5 year, 12% note. The forklift is a well made American Machine & Foundry product, and it is expected to last for 10 years. Dec Beacon purchases office equipment for S2,000, paying cash. The equipment has an expected life of 5 years. Dec 3Beacon purchases 30,000 bd. ft. of lumber from BWLC for $27,000. Again, after reaching its credit limit it paid cash for the remaining amount. Dec3On this day Beacon sent a check to pay for December's rent for the office trailer Dec 6 Beacon signs a contract with SCORE Construction to have a warehouse built on its property. The warehouse will cost S20,000. Beacon will pay SCORE by issuing S10,000 worth of stock, paying $5,000 in cash and issuing a note for the balance. 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. Dec 6 The sister of investor #2 purchases the balance of investor #2's Beacon stock for S3,000 (see General Journal, Nov 15). Dec7 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. Dec 15 On this day Beacon sells 3 acres of land for $15,000. It receives $5,000 in cash and a mortgage note for the rest. The note carries interest at 10% and the principal amount is due in 8 years. Assume that all the land had a uniform cost per acre when it was purchased by Beacon Dec 18 The office manager purchases $250 worth of office supplies. Use account #728 (Office Supplies Expense) to record the purchase. Beacon pays cash 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. (In order 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.) Dec 29 The Board of Directors declares a cash dividend of S.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 31Total 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 account all merchandise at a uniform selling price of S1.60 per board foot. (Hint: you holders of $36,700Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started