Section C: Simulation. 14. Big Oak Lumber is a lumber yard on Angel Island. Some of Bi during the current year are as follows: g Oak's transactions April 15. Sold lumber on account to Hard Hat Construction S19,.700 3oo The inventory subsidiary ledger shows the cost of this merchandise was $10,300. April 19. Purchased lumber on account from LHP Company, $3,700. May 10. Collected in cash the $19,700 account receivable from Hard Hat Construction May 19. Paid the $3,700 owed to LHP Company December 3 1. Big Oak's personnel counted the inventory of $116,500 and a cost of goods sold of $721,000. a Prepare journal entries to record these transactions (The company uses a perpetual inventory system). Prepare a partial income statement showing the company's gross profit for the year (Net Sales for the year amount to $1,422,000). b