Prepare the journal entries to record the December transactions.

Lawpo Sluggers was incorporated on January 1, 2015 by the venerable Mr. Lawpo. The business was incorporated to sell and produce high-quality baseball bats to various MLB teams and regional retailers. During the final month of the first year of operations, Lawpo completed the following transactions:

12/1/2015 Lawpo Sluggers was in need of capital to expand their growing operations and decided to raise additional funds via a seasoned stock offering to the public. Lawpo Sluggers issued 1,000 shares of $10 par common stock for $40,000.00.

12/1/2015 In order to support the rapidly growing operations, Lawpo purchased a building, piece of equipment, and the parcel of land. The cost of the building and land were determined to be $100,000.00 and $50,000, respectively. Moreover, Lawpo signed a note payable due in 5 years. The terms of the note are $165,000, 5-year at 8% interest payable monthly starting January 1, 2016. Lawpo was also required to make a down payment of $10,000 on the purchase. Determine the cost of the equipment and journalize the transaction. Check #295 was used for the down payment.

12/1/2015 Purchased an insurance policy for the newly purchased building for $1,200.00 with Check #296. The policy runs for a 2- year period, at which time Lawpo will have the ability for renew the policy.

12/2/2015 An error in recording supplies received last month was discovered. $300.00 of office supplies received should have been recorded as shop supplies.

12/3/2015 Sold $5,000.00 worth of baseball bats to the Philadelphia Phillies for cash.

12/4/2015 Sold $23,500.00 worth of baseball bats to the Sports Distributor, Inc. on account; terms 2/10, n/30; invoice #20.

12/5/5015 Paid the remaining balance of $7,000.00 to Northwoods Ash with Check #297. The balance owed is 20 days past due.

12/5/2015 Purchased $9,750.00 of lumber on account from Maple Lumber Distributor; terms 2/10, n/30.

12/6/2015 Purchased $1,000.00 of shop supplies from Game Changing Paint Company on account.

12/7/2015 Purchased $7,000.00 of wood inventory from Ash Lumber Suppliers for cash. Check #298.

12/8/2015 To improve the recently purchased property, Lawpo hired contractors to install new fencing around the property for $260, provide landscaping services for $440, and install a new lighting system for $2,000. Lawpo also paid the contractors to level the land around the building for $3,000. Check #299 was mailed for the total amount of $5,700.00.

12/9/2015 Lawpo received an offer from the MLB to include its company in various advertisements at baseball stadiums across the country. The cost of the advertisement will be $3,000.00. Mr. Lawpo sent Check #300 to the MLB for the advertising expense.