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December 3 Received a check in the amount of $23,569 from Swanson Brothers Construction in full payment of invoice No, 1120 dated November 26 in the amount of $24,050. 3 Sold sewer and drainage pipe to Beverly's Building Products on account, invoice No. 1201 for $13,150. 3 Purchased copper tubing and fittings from Edward's Plumbing Supplies Inc. on account, purchase order No. 315 for $24,320, terms n/60. 3 Issued check No. 1580 for $26,400 to Oxenford Copperworks in settiement of the balance owed on purchase order No. 280 . 3 A court notice indicates that lwanaga Plumbing and Heating is bankrupt and payment of its account improbable; the president orders the account to be written off as a bad debt (invoice No, 780). 3 Sold bathroom fixtures to Bilder Construction Company on account, imvice No, 1202 for $44,900, 4 Received a check in the amount of $49,294 from The Potts Company in full payment of invoice No. 1128 dated November 27 for $50,300. 4 Sold plumbing supplies and plastic pipe to Coconino Contractors, Inc, on account, involice No. 1203 for $10,300. 4 Issued check No, 1581 for $810 to Standard OA Co. in payment of gas, oil, and truck repair from Tierney's Standard Service. 5 Issued check No. 1582 for $9,900 to Khatan Steel Corp. in full settlement of purchase order No. 312 for $10,000. 5 Issued check No, 1583 for $10,486 to Phoenix Plastics in full payment of Phoenix's invoice dated November 28 in the amount of $10,700, for purchase order No. 313, terms 2/10,n/30. 5 Received a check in the amount of $72,863 from Rankin Plumbing Corp. in full payment of invoice No. 1129 dated November 28 for $74,350. 6 Sold cast pipe to Trudy's Plumbing on account, invoice No. 1204 for $29,300. 6 Received a check in the amount of $27,800 from Coconino Contractors, Inc, in full payment of invoice No. 1091 dated October 20. 6 Purchased bathroom fixtures from Phoenix Plastics, on account, purchase order No. 316 for $52,700 terms 1/10,n/30. 7 Received a check in the amount of $29,000 from Boecker Builders in partial payment of balance outstanding covering invoice No5. 1050 and 1071. 7 Issued check No, 1584 for $600 to Scooter Gordon for lettering and sign painting on some delivery trucks. 7 Issued check No. 1585 for $6,750 to Phoenix Plastics, in payment of Phoenix's imvice dated November 12 in the amount of $6,750, our purchase order Na,299. 10 Issued check No. 1536 for $37,719 to Smith Pipe Company in full payment of their imoice dated Nowember 28 , terms 1/15, n60, our purchase curder No. 314. 10 Received a check in the amotint of $15,100 from Trudy's Pumbing in full settlement of imoice No 1106 dated November 7. 10 Sold pipe, fixtures, and accespoties to Trudy's Plumbing on account, invoice No, 1205 for $33.850. 11 The payroll summary for the biweckly pay period ended Friday, December 7 contained the followine information: Issued check No, 1587 for the amount of the net pay and deposited it in the payroll bank account. Individual payroll checks were then prepared for distribution to the biweckly employees on Tuesday, December 11. 11 Sold plumbing supplies and copper tubing to The Fotts Company on account, imvoice No. 1206 for $31,450 11 Received a check in the amount of $33.920 from Boecker Builders in full payment of imvoice No. 1071. 11 Cash sales to date totaled $12,292. 12 Received a check in the amount of $28,714 from Trudy's Plumbing in payment of invoice No, 1204. 12 Sold plumbing fixtures and supplies to Boecker Builden, on account, invoice No, 1207 for $24,730. 13 The Pots Company returned defective copper tubing that if purchased on December 10. A credit memo in the amount of $4,680 is issued relative to involce No, 1206 . The copper tubing had a cost of $3,550. 13 The defective copper tubing is returned to Edward's Mumbing Supplies, Inc, along with a debit memo in the amount of $3,550 in reduction of purchase order No. 315 . 13 Issued check No. 1588 for $399 in payment of November telephone bill to Northern Illinois Communications. 14 Lsued check No, 1589 in the amount of $11,360 in payrment of federal witholding taxes, $9,573, and FICA taxes, $1,787, payable on November salaries and wagest the check is remited to the Winnebago County Bank as the depository. 14 Issued chack No. 1590 for $52,173 to Phoenix Plastics, Inc, in payment of purchase onder No, 316. 17. The president informs you that Bilder Construction Company agrees to convert the $45,200 overdue account receivable (imvice No. 1120) to an 8% note due six months from todaw: 17 Purchased phumbing materials from Smith Pipe Company on accoumt, purchase order No, 317 for $60,800 terms 1/15, ne0. 18 Sold drain tile, plastic pipe, and copper tubing to A 6 B Hardware on account, involee No. 1208 for $7,920. 18 Sold fixtures and materials to Coconino Contractors, Inc, on accoumt, invoice No. 1209 for $42,780. 19 An imbice in the amount of $1,021 was received from $. White Trucking Company for freight on purchase order No. 317 and paid by issuing check No. 1591. 19 Received a check in the amount of $33.173 from Trudy's Plumbing in payment of imvoice No. 1205. 20. Purchased office supplies from the Nen 5 Pad, tssuing check No. 1592 in the amount of $1,360. (Note: Deblt asset account). 20 Purchased a new Faith computer for 56.100 from Business Bastoh, Inen, purchase order No. 318 , paying $600 down through Check No. 1598 with the balance due in thirty days (n/30). The computer bas an estimated life of five years with a salvage value of $1,300. Use subsidiary account No. 16. Journalize the entife entry in the cash disbursements journal. 21 Purchased bathroom and kitchen fixtures from Phoenix Plastics, on account, purchase onder Ne. 319 for $48,330, terms 1/10,n30. 21 Received a bill from DeKalb Transport for $2,300 for freight costs incurred during the last 30 diys, terms n/30. 24 The payroll summary for the biweekly pay period ended Friday, December 21, contained the followins information: Issued check No. 1594 for the amount of the net pay and ceposited ur tn the payroll bank account. Individual payroll checks were then prepared for distribution to the biweckly employees on Monday, December 24. NO'RE 'Transactions up to this point bive been recorded. At this point you became controller and are responsible for recording all further transactions. 26 The board of diretion voted to purchase 1,000 shares of its own stock from stockholder Dionne Schisone at $92 per share and issued check No, 1595 in paymeat. Stock repurchases are recorded at cost. Rockford is purchasing these shares because Mts. Schivone had been a valuable erployee. 26 The board of directors declared a $2.25 per-share cash dividend payable on January 14 to stockholders of record on December 26 (after purchase of stock). 26 The president informs you that Beverly's Building Products agrees to convert the $14,000 overdue accounts recelvable (invoice No. 1119) balance to a 9% note due six months from today. 27 A half-acre parcel of land adjacent to the building is acquired in exchange for 500 shares of unissued common stock. The land has a fair value of $51,000 and will be used immediately as an outside storage lot and parking lot. 27 An invoice in the amount of $2,200 is received from Wayne MeManus, Lawyer, for legal services involved in the acquisition of the adjacent parcel of land; check No. 1596 is issued in payment. 27 Sold pipe and plumbing materials to Boecker Builders on account, invoice No. 1210 for $48,740. 28 Issued check No. 1597 in the amount of $475 to the Northern Star for advertisement run in the home building supplement of December 13 . 28 Issued check No. 1598 in the amount of $1,025 to Standard Oil Co. in payment of gas, oil, and truck repairs from Standard Oil Co. (use Freight-out). 28 Purchased copper and cast iron pipe from Oxenford Copperworks on account, purchase order No. 320 for $67,640, terms 1/10,n/30. 28 Check No. 1599 for $18,000 is issued to the bond sinking fund trustee, Chicago Trust Co., for deposit in the sinking fund. (Use Other Assets). 28 Sold plumbing supplies to Swanson Brothers Construction on account, invoice No. 1211 for $28,500. 31 Received a check for $24,730 from Boecker Builders in payment of inwoice No. 1207. 31 Issued check No. 1600 for $60,192 to Smith Pipe Company in payment of purchase order No. 317 . 31 The custodian of the petty cash fund submits the following receipts for reimbursement and reports a cash-on-hand count of $8. Postage stamps used (supplies expense) United Parcel (freight-out) C.O.D. postage (inventory costs) $75 21 46 Check No. 1601 is issued and cashed to reimburse the fund. 31 Sold an electric truck to Leila Stierman Co. for $3,800 cash. The original cost was $9,000 with salvage value of $1,000, a life of 10 years, and accumulated depreciation recorded through 12/31/17 of $3,600. The straight-line method is used. (Note: the company follows the practice of recording a half year's depreciation in the year of acquisition and a half year in the year of disposal.) First, bring the depreciation expense up to date in the general journal. Then journalize the entire entry for the sale in the cash receipts journal. 31 Sold bathroom fixtures and plumbing supplies to Trudy's Plumbing on account, invoice No, 1212 for $50,750. 31 Because for some time the petty cash fund has been smaller than required for monthly expenditures, the fund is increased by $75 by cashing check No. 1602 and placing the money in the petty cash fund. 31 The payroll summary for the monthly paid employces is submitted so that December checks can be distributed before the year-end; the details are as follows: Issued check No. 1603 for the amount of the net pay and deposited it in the payroll bank account. Individual payroll checks were prepared for distribution to all monthly employees by the end of the day. 31 Cash sales since December 14 total $41,780. INSTRUCTIONS 1. Make the entries in the appropriare journals for December 26 through December 31 . 2. Post any amounts to be posted as individual amounts from the journals to the general ledger and any amounts to be posted to the subsiditiry ledger accounts. (If the normal practice of daily posting were followed, the posting would be in chronological onder: proper date sequence for this practice set is not necessary.) 3. Foot and cross-foot the columnar journals and complete the month-end postings of all books of original entry. 4. Prepare a trial balanee by entering the aceount balanoes from the general ledger in the first two columns of the ten-column work sheet (list all accounts, inctuding those with zero balances). 5. From the following information prepare adjusting entries in the general journal and enter them in the "adjustments" columns of the work sheet and cross-reference the amounts using the related alphabetic characters (round all calculations to the nearest dollar). a. The annual provision for dotabtful accotamts receivable is recorded in an amotant equal to 4% of pross accounts receivable less the cading Allowance account bulance. (This entry should be entered below the middle of General Joumal page 10.) b. An inventory count of the oflice supplies revealed $740 of supplies on hand at yearend. c. The insurance premium outstanding on January 1,2018, covers the period January 1 through August 31,2018 . The insurance premium of 510,200 recorded in August covers the period of September 1, 2018 through August 31, 2019. d. The payroll summary for the employees who are paid biweekly shows the following infirmation at December 31, 2018: e. The employer's share of the FICA tax ($490) must be accrued; no state or federal unemployment tax is incurred during the fourth quarter because all wages and salaries earned during the last quarter exceed the maximum subject to unemployment tax. f. Interest has accrued at 7% on the long-term notes payable since July 1, 2018. The next six-month interest payment at 6% on the bonds is due on March 1, 2019. The original discount on bonds payable was $15,360. No portion of the discount has been amortized for any part of 2018; the bonds are 10-yr maturity. (Use straight-line.) g. The interest accrued to 12/31/18 on notes receivable is composed of the following: Platteville Plumbers, 10%,6 months, due March 31, 2019$1,150 Bilder Construction, 8%,6 months, due June 17,2019139 Beverly's Building, 9\%, 6 months, due June 26, 2019 The interest accrued at 12/31/18 on the note payable of $15,000@8% is $1,200. Interest is payable on January 2, 2019. (The note is due in 2019.) h. A warehouse lease payment of $15,000 was made on September 1, 2018, for rental through February 28, 2019. (The Prepaid Rent account is for advance lease payments on the warehouse. This is the only outstanding lease agreement at year end.) i. $750 is owed to Northern Electric Co. and $245 is owed to City of Rockford for utility services provided during December 2018. j. Plant and equipment depreciation expense is composed of the following: 6. Income Tax expense for 2018 is $120,700 in total. Prepare the journal entry for the income tax. (Take into consideration what has already been recognized in 2018 as income tax expense.) 7. Post all adjusting entries. 8. Prepare schedules of subsidiary accounts receivable and accounts payable and determine that the total per each subsidiary schedule agrees with the related control account. 9. Prepare an income statement (assume the weighted-average number of shares outstanding for the year 2018 is 5,100 shares). Assume that bad debt expense and depreciation expense are administrative expenses. 10. Prepare a statement of retained earnings. 11. Prepare a balance sheet. (Hint: combine Petty Cash with Cash for balance sheet purposes.) 12. Prepare and post closing entries. 13. Prepare a post-closing trial balance

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