Question

Nov 17 Beacon agrees to rent a trailer which it will use as a temporary office. The

rental cost, as determined by AZCO, the lessor, will be $200 per month.

AZCO will pro-rate this month's rent, using a Nov18th start date. Beacon

pays the rent. In the future, rent will be due the first of the month. Beacon cannot receive a discount if the trailer is returned. Therefore, the lessor has determined that a performance obligation has been met on the first day of the month not at the end of the month. Hint – if lessor is recording revenue then the lessee, Beacon should be recording the expense not a prepaid asset. Round your entry to the nearest dollar.

Nov 17 Beacon applies for credit to the Big Wholesale Lumber Company (BWLC).

Since Beacon is a brand-new business and has no history of operations the

credit manager for the BWLC is at first reluctant to approve the request.

Eventually, after heated discussions, she agrees to a $10,000 limit, provided

that the company's ratio of Debt to Total Assets does not rise above .70, and

that its Current Ratio does not fall below 2.45.

Nov 17 Beacon purchases 20,000 board feet (bd. ft.) of framing lumber from BWLC

at a cost of $.90/bd. ft., (ninety cents per board foot). After reaching its credit

limit, it paid cash for the balance of the purchase.

Nov 17 Beacon hires an Office Manager and two-yard personnel. The yard personnel

will each earn $12.00 per hour and the manager will earn $17.00 per hour. All

employees will work an eight-hour day.

Nov 18 The Solid Construction Company purchases 3,000 bd. ft. of lumber from Beacon on

account for $4,800.00. (Beacon uses the perpetual method of inventory is used.)

Nov 18 The Strong Construction Company purchases 6,000 bd. ft. of lumber on

account for $9,600.00.

Nov 18 The Reliable Construction Company purchases 4,000 bd. ft. of lumber on

account for $6,400.00.

Nov 20 The Nocturnal Departures Home Improvement Co. applies for a trade credit

Account with Beacon. Nocturnal provides the following financial information to Beacon in its credit

application:

Cash                12,000             Short-term Liabilities 2,000

Total Assets    15,500             Total Liabilities          5,000

Nov 20 The Nocturnal Departures Home Improvement Co. purchases 1,000 bd. ft. of

lumber for $1,600, paying cash.

Nov 22 John Q. Homeowner purchases 2,000 bd. ft. of lumber for $3,500, paying

cash. He does not have a sales tax exemption certificate. By law, Beacon

must collect 8.25% sales tax and remit this to the state at the end of each

quarter. (Hint: your entry should include a credit to Sales Taxes Payable of

289 *rounded up ($288.75* ($3,500 x .0825).)

Nov 26 The Solid, Strong & Reliable Construction Companies all send checks totaling

$18,000 for payment on account.

Nov 26 Beacon writes a check for $10,000 to the Big Wholesale Lumber Company

for payment on account.

Nov 30 Beacon pays a total wage expense of $3,608 to its workers for the month of

November. (Debit the store wages expense account when you make this

entry.)

Please help me by providing journal entries for each transaction. thank you

Answer 1

Credit Debit $80.00 Date Accounts title and explanation 17-Nov Rent expense Cash (S200/30day) 12 days) (To record rent expense) $80.00 $10,000.00 17-Nov Cash Accounts payable To record grant of $10,000 by BWLC)) $10,000.00 $18,000.00 17-Nov Inventory Cash To record purchases) S 18,000 17-Nov No Entry 18-Nov Accounts Receivable $4,800.00 Sale $4,800.00 (To record sale) $2.700.00 18-Nov Cost of goods sold (3.000*$0.9) Inventory (To record cost of goods sold) $2,700.00 $9,600.00 18-Nov Accounts Receivable Sale (To record sale) $9,600.00 $5,400.00 18-Nov Cost of goods sold (6.000*$0.9) Inventory To record cost of goods sold) $5,400.00 $6,400.00 18-Nov Accounts Receivable Sale (To record sale) $6,400.000

$3,600.00 18-Nov Cost of goods sold (4.000*$0.9) Inventory (To record cost of goods sold) $3,600.00 $1,600.00 20-Nov No Entry 20-Nov Cash Sale (To record sale) $1,600.00 $900.00 20-Nov Cost of goods sold (1,000*$0.9) Inventory (To record cost of goods sold) $900.000 $6,387.50 22-Nov Cash Sale Sales tax payable (To record sale) $3,500.00 $2,887.50 $1,800.00 Cost of goods sold (2,000*$0.9) Inventory (To record cost of goods sold) $1,800.00 $18,000.00 $18.000.000 26-Nov Cash Accounts Receivable (To record Solid, Strong & Reliable Construction check payment) $10,000.00 $10,000.00 26-Nov Accounts payable Cash (To record check form Big Wholesale Lumber Company) $3,608.00 30-Nov Store wages expense Cash (To record payment of wages) $3,608.00