Make the adjusting entries for December 31:

Answer the highlighted yellow dates, please November data if needed:

December Activity to review and record, respond as applicable 1-Dec Beacon purchases a general liability insurance policy, paying cash. The term of the policy is one year, from Dec 1, 2009 through Nov 30,2010. \begin{tabular}{|c|} \hline$ \\ \hline Cost \\ \hline \end{tabular} 1-Dec Beacon purchases a forklift, paying half in cash and half with a note. The forklift is a well made American Machine \& Foundry product. 1-Dec Beacon purchases office equipment, paying cash. \begin{tabular}{lr|r|r|r} & \multicolumn{1}{c|}{NoteTerm-Years} & InterestRate & AssetLife-Years \\ \hline$ & 12,250.00 & 5 & 12.00% & 10 \\ $ & 2,450.00 & & & 5 \end{tabular} 3-Dec Beacon purchases bd. ft. of lumber from BWLC. Again, after reaching its credit limit it paid cash for the remaining amount. 3-Dec On this day Beacon sent a check to pay for December's rent for the office trailer. 6-Dec Beacon signs a contract with SCORE Construction to have a warehouse built on its property. Beacon will pay SCORE by issuing some stock, paying some in cash and issuing a note for the balance. 6-Dec Beacon pays cash for three months of advertising on a web site. The ad will run from Dec 15 through March 15. 6-Dec The sister of investor #2 purchases the balance of investor #2 's Beacon stock (see General Journal, Nov 15). 7-Dec Beacon pays the lawyer's bill received on Nov 4. 15-Dec 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 4 months rent in advance. 735.00 The lease will start on Dec 15 . 15-Dec On this day Beacon sells 3 acres of land, part in cash and the remainder in a mortgage note. Assume that all the land had a uniform cost per acre when \begin{tabular}{cc|c|c|r} \hline & Price & CashProceeds & InterestRate & NoteTerm-Years \\ \hline$18,375.00 & $6,125.00 & 10.00% & 8 \end{tabular} it was purchased by Beacon. 18-Dec The office manager purchases office supplies. Use account \#728 (Office Supplies Expense) to record the purchase. Beacon pays cash. $306.25$ 29-Dec Girl Scouts sneak into the lot Friday night and start a campfire. The fire gets out of control and destroys some 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.) \begin{tabular}{|l|l|l|l|l|} 29-Dec & The Board of Directors declares a cash dividend, payable in January. (Hint: Use the dividends and dividends payable - common stock accounts.) & $ \\ \hline 30-Dec & This is the last payday for the month of December. The next payday will occur in January. (For the time being you can ignore payroll taxes. We will & $ \\ \hline \end{tabular} examine this topic later in the course.) 31-Dec Total sales on account for the month of December. Beacon sold all merchandise at a uniform selling price per board foot. (Hint: you should be able $55, $60.00$1.96 to use this information to calculate the COGS entry.) 31-Dec Beacon collected cash payments from its account holders. \$ 44,957.50NA 4-Nov Later in the day a second investor purchases shares. 4-Nov Later in the day a third investor purchases shares. 4-Nov Later that afternoon the lawyer who performed the incorporation submits a bill. 6-Nov The investors (and, at present, the sole owners) of the Beacon Lumber Corporation elect three prominent businesspersons to the company's Board of Directors. The board will meet once every quarter to review operations and set overall policy for the company, but it will not be involved in the day to day operations. The company's founder is appointed CEO of the corporation. The board appoints a clerk-secretary. 15-Noy An investor supplies 20 acres of land in exchange for stock and a 5 year mortgage note for the balance. The note requires Beacon to pay interest anually and the principal (face amount) due at maturity. 15-Nov Investor #2 sells some of their shares of Beacon stock to a younger sister. 17-Nov Beacon agrees to rent a trailerfrom AZCO, the lessor, which it will use as a temporary office. AZCO will pro-rate this month's rent, using a Nov1 8th S start date. Beacon pays the rent. In the future, rent will be due the first of the month. 17-Nov 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 sell to Beacon on credit with a small credit limit, and covenats to be able to call or cancel the credit should Beacon exceeed a specified Debt to Assets measurement or if they fall below a specified Current Ratio. 17-Nov Beacon purchases framing lumber from BWLC in board feet. Part on credit, part cash. After reaching its credit limit, it paid cash for the balance of the purchase. 17-Nov 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. 18-Nov Solid Construction company purchased lumber from Beacon on account (Hint: remember on sales of product to also make an entry for Cost of Goods Sold (COGS). COGS is an expense, so you will debit this account and credit inventory, an asset.) 18-Nov The Strong Construction Company purchases lumber from Beacon on account. 18-Nov The Reliable Construction Company purchases lumber from Beacon on account. 20-Nov The Nocturnal Departures Home Improvement Co. applies for a trade credit account from Beacon. Nocturnal provides the following financial information in its credit application: cash position. When she asks Nocturnal about the discrepancy Nocturnal explains that the financial information includes the anticipated (but as yet unrealized) profit on a job under bid. Nocturnal's accountant explains that the company keeps its books according to Contingent Reality Accounting Principles (CRAP). The office manager reviews financial statements for the company and adjusts them to GAAP: 20-Nov The Nocturnal Departures Home Improvement Co. purchases lumber from Beacon for cash. 22-Nov John Q. Homeowner purchases lumber from beacon paying cash. He does not have a sales tax exemption certificate. By law, Beacon must collect 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). 26-Nov The Solid, Strong \& Reliable Construction Companies all send checks totaling 26-Nov Beacon writes a check to the Big Wholesale Lumber Company for pay off what they owe them. 30-Nov Beacon pays its employees for what they have earned through November. (Debit the salaries and wages expense account when you make this entry.) S4,419.80 December Activity to review and record, respond as applicable 1-Dec Beacon purchases a general liability insurance policy, paying cash. The term of the policy is one year, from Dec 1, 2009 through Nov 30,2010. \begin{tabular}{|c|} \hline$ \\ \hline Cost \\ \hline \end{tabular} 1-Dec Beacon purchases a forklift, paying half in cash and half with a note. The forklift is a well made American Machine \& Foundry product. 1-Dec Beacon purchases office equipment, paying cash. \begin{tabular}{lr|r|r|r} & \multicolumn{1}{c|}{NoteTerm-Years} & InterestRate & AssetLife-Years \\ \hline$ & 12,250.00 & 5 & 12.00% & 10 \\ $ & 2,450.00 & & & 5 \end{tabular} 3-Dec Beacon purchases bd. ft. of lumber from BWLC. Again, after reaching its credit limit it paid cash for the remaining amount. 3-Dec On this day Beacon sent a check to pay for December's rent for the office trailer. 6-Dec Beacon signs a contract with SCORE Construction to have a warehouse built on its property. Beacon will pay SCORE by issuing some stock, paying some in cash and issuing a note for the balance. 6-Dec Beacon pays cash for three months of advertising on a web site. The ad will run from Dec 15 through March 15. 6-Dec The sister of investor #2 purchases the balance of investor #2 's Beacon stock (see General Journal, Nov 15). 7-Dec Beacon pays the lawyer's bill received on Nov 4. 15-Dec 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 4 months rent in advance. 735.00 The lease will start on Dec 15 . 15-Dec On this day Beacon sells 3 acres of land, part in cash and the remainder in a mortgage note. Assume that all the land had a uniform cost per acre when \begin{tabular}{cc|c|c|r} \hline & Price & CashProceeds & InterestRate & NoteTerm-Years \\ \hline$18,375.00 & $6,125.00 & 10.00% & 8 \end{tabular} it was purchased by Beacon. 18-Dec The office manager purchases office supplies. Use account \#728 (Office Supplies Expense) to record the purchase. Beacon pays cash. $306.25$ 29-Dec Girl Scouts sneak into the lot Friday night and start a campfire. The fire gets out of control and destroys some 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.) \begin{tabular}{|l|l|l|l|l|} 29-Dec & The Board of Directors declares a cash dividend, payable in January. (Hint: Use the dividends and dividends payable - common stock accounts.) & $ \\ \hline 30-Dec & This is the last payday for the month of December. The next payday will occur in January. (For the time being you can ignore payroll taxes. We will & $ \\ \hline \end{tabular} examine this topic later in the course.) 31-Dec Total sales on account for the month of December. Beacon sold all merchandise at a uniform selling price per board foot. (Hint: you should be able $55, $60.00$1.96 to use this information to calculate the COGS entry.) 31-Dec Beacon collected cash payments from its account holders. \$ 44,957.50NA 4-Nov Later in the day a second investor purchases shares. 4-Nov Later in the day a third investor purchases shares. 4-Nov Later that afternoon the lawyer who performed the incorporation submits a bill. 6-Nov The investors (and, at present, the sole owners) of the Beacon Lumber Corporation elect three prominent businesspersons to the company's Board of Directors. The board will meet once every quarter to review operations and set overall policy for the company, but it will not be involved in the day to day operations. The company's founder is appointed CEO of the corporation. The board appoints a clerk-secretary. 15-Noy An investor supplies 20 acres of land in exchange for stock and a 5 year mortgage note for the balance. The note requires Beacon to pay interest anually and the principal (face amount) due at maturity. 15-Nov Investor #2 sells some of their shares of Beacon stock to a younger sister. 17-Nov Beacon agrees to rent a trailerfrom AZCO, the lessor, which it will use as a temporary office. AZCO will pro-rate this month's rent, using a Nov1 8th S start date. Beacon pays the rent. In the future, rent will be due the first of the month. 17-Nov 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 sell to Beacon on credit with a small credit limit, and covenats to be able to call or cancel the credit should Beacon exceeed a specified Debt to Assets measurement or if they fall below a specified Current Ratio. 17-Nov Beacon purchases framing lumber from BWLC in board feet. Part on credit, part cash. After reaching its credit limit, it paid cash for the balance of the purchase. 17-Nov 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. 18-Nov Solid Construction company purchased lumber from Beacon on account (Hint: remember on sales of product to also make an entry for Cost of Goods Sold (COGS). COGS is an expense, so you will debit this account and credit inventory, an asset.) 18-Nov The Strong Construction Company purchases lumber from Beacon on account. 18-Nov The Reliable Construction Company purchases lumber from Beacon on account. 20-Nov The Nocturnal Departures Home Improvement Co. applies for a trade credit account from Beacon. Nocturnal provides the following financial information in its credit application: cash position. When she asks Nocturnal about the discrepancy Nocturnal explains that the financial information includes the anticipated (but as yet unrealized) profit on a job under bid. Nocturnal's accountant explains that the company keeps its books according to Contingent Reality Accounting Principles (CRAP). The office manager reviews financial statements for the company and adjusts them to GAAP: 20-Nov The Nocturnal Departures Home Improvement Co. purchases lumber from Beacon for cash. 22-Nov John Q. Homeowner purchases lumber from beacon paying cash. He does not have a sales tax exemption certificate. By law, Beacon must collect 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). 26-Nov The Solid, Strong \& Reliable Construction Companies all send checks totaling 26-Nov Beacon writes a check to the Big Wholesale Lumber Company for pay off what they owe them. 30-Nov Beacon pays its employees for what they have earned through November. (Debit the salaries and wages expense account when you make this entry.) S4,419.80