prepare journal entries for the month of december and a trial balance.

Dec 1 - 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 20,2010.

Dec 1 - Beacon purchases a forklift for $10,000, 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 yrs.

Dec 1 - Beacon purchases office equipment for $2,000, paying cash. The equipment has an expected life of 5 yrs.

Dec 3 - Beacon purchases 30,000 bd fr. of lumber from BWLC for $27000. again, after reaching its credit limit it paid cash for the remaining amount.

Dec 3 - On this day Beacon sent a check to pay for Decembers 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 $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 - 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 $3,000 ( Which originally sold 500 shares of Beacon stock to a younger sister for $500.

Dec 7 - Beacon pays the lawyer bill received on Nov 4.

Dec 15 - Mark Peltz, a local sculptor, agrees to rent 1 acre of land at the near of Beacons 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 yrs. 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 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 Direction declares a cash dividend of $.05 per share, payable in January . ( hint: Use the dividends and dividend 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 all merchandise at a uniform selling price of $1.60 per board foot. (hint : you 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 holders of $36,700.