25 The board of directors voted to purchase 1,200 shares of its own stock from s

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25 The board of directors voted to purchase 1,200 shares of its own stock from stockholder Dionne Schivone at $86 per share and issued check No. 1595 in payment. Stock repurchases are recorded at cost. Rockford is purchasing these shares because Ms. Schivone had been a valuable employee. 26 The baord of directors declared a $1.60 per share cash dividend payable on January 14 to shareholders of record by the end of the day of December 26. 26 The president informs you that Beverly's Building Products agrees to convert the $14,000 overdue accounts receivable (invoice No. 1119) balance to a 12% note due six months from today. 29 A half-acre parcel of land adjacent to the building is acquired in exchange for 600 shares of unissued common stock. The land has a fair value of $58,000 and will be used immediately as an outside storage lot and parking lot. 29 An invoice in the amount of $2,950 is received from Wayne McManus, lawyer, for legal services involved in the acquisition of the adjacent parcel of land; check No. 1596 is issued. 29 Sold pipe and plumbing materials to Boecker Builders on account, invoice No. 1210 for $47,040.00 30 Issued check No. 1597 in the amount of $1,500 to the Northern Star for adverstisement run in the home building supplement of December 13. 30 Issued check No. 1598 in the amount of $750 to Standard Oil Co. in payment of gas, oil, and truck repairs from Standard Oil Co. (use Freight-out). 30 Purchased copper and cast iron pipe from Oxenford Copperworks on account, purchase order No. 320 for $63,940, terms 1/10, n/30. 30 Check No. 1599 for $14,000 is issued to the bond sinking fund trustee, Chicago Trust Co., for deposit in the sinking fund. (Use Other Assets). 30 Sold plumbing supplies to Swanson Brothers Construction on account, invoice No. 1211 for $24,350. 31 Received a check for $24,730 from Boecker Builders in payment of invoice No. 1207. 31 Issued check No. 1600 for $50,292 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 stampls used $38 United Parcel (freight-out) 23 C.O.D postage (freight costs) 51 Christmas office decorations 30 Check No. 1601 is issued and cashed to reimburse the fund. 31 Sold an electric truck-lift to Leila Stierman Co. for $2,600 cash. The original cost was $7,900 with salvage value of $900, a life of 10 years, and accumulated depreciation recorded through 11/31/13 is $4,550. 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 $58,770. 31 Because for some time the petty cash fund has been smaller than required for monthly expenditures, the fund is increased by $95 by cashing check No. 1602 and placing the money in the petty cash fund. 31 The payroll summary for the monthly paid employees in submitted so that December checks can be distributed before the year-end; the details are as follows: Office and administrative salaries $43,900 Federal income taxes withheld 7,696 State income taxes withheld 1,517 FICA taxes withheld 3,120 Net pay $31,567 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. Employer's payroll taxes: FICA tax (all office and administrative) $3,120 Federal unemployment tax 0 State unemployment tax 0 31 Cash sale since December 12 total $29,280. Instructions 1 Make the entries in the appropriate journal for December 25 through December 31. (adjusting entries are recorded in general journal) 25 The board of directors voted to purchase 1,200 shares of its own stock from stockholder Dionne Schivone at $86 per share and issued check No. 1595 in payment. Stock repurchases are recorded at cost. Rockford is purchasing these shares because Ms. Schivone had been a valuable employee. 26 The baord of directors declared a $1.60 per share cash dividend payable on January 14 to shareholders of record by the end of the day of December 26. 26 The president informs you that Beverly's Building Products agrees to convert the $14,000 overdue accounts receivable (invoice No. 1119) balance to a 12% note due six months from today. 29 A half-acre parcel of land adjacent to the building is acquired in exchange for 600 shares of unissued common stock. The land has a fair value of $58,000 and will be used immediately as an outside storage lot and parking lot. 29 An invoice in the amount of $2,950 is received from Wayne McManus, lawyer, for legal services involved in the acquisition of the adjacent parcel of land; check No. 1596 is issued. 29 Sold pipe and plumbing materials to Boecker Builders on account, invoice No. 1210 for $47,040.00 30 Issued check No. 1597 in the amount of $1,500 to the Northern Star for adverstisement run in the home building supplement of December 13. 30 Issued check No. 1598 in the amount of $750 to Standard Oil Co. in payment of gas, oil, and truck repairs from Standard Oil Co. (use Freight-out). 30 Purchased copper and cast iron pipe from Oxenford Copperworks on account, purchase order No. 320 for $63,940, terms 1/10, n/30. 30 Check No. 1599 for $14,000 is issued to the bond sinking fund trustee, Chicago Trust Co., for deposit in the sinking fund. (Use Other Assets). 30 Sold plumbing supplies to Swanson Brothers Construction on account, invoice No. 1211 for $24,350. 31 Received a check for $24,730 from Boecker Builders in payment of invoice No. 1207. 31 Issued check No. 1600 for $50,292 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 stampls used $38 United Parcel (freight-out) 23 C.O.D postage (freight costs) 51 Christmas office decorations 30 Check No. 1601 is issued and cashed to reimburse the fund. 31 Sold an electric truck-lift to Leila Stierman Co. for $2,600 cash. The original cost was $7,900 with salvage value of $900, a life of 10 years, and accumulated depreciation recorded through 11/31/13 is $4,550. 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 $58,770. 31 Because for some time the petty cash fund has been smaller than required for monthly expenditures, the fund is increased by $95 by cashing check No. 1602 and placing the money in the petty cash fund. 31 The payroll summary for the monthly paid employees in submitted so that December checks can be distributed before the year-end; the details are as follows: Office and administrative salaries $43,900 Federal income taxes withheld 7,696 State income taxes withheld 1,517 FICA taxes withheld 3,120 Net pay $31,567 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. Employer's payroll taxes: FICA tax (all office and administrative) $3,120 Federal unemployment tax 0 State unemployment tax 0 31 Cash sale since December 12 total $29,280. Instructions 1 Make the entries in the appropriate journal for December 25 through December 31. (adjusting entries are recorded in general journal)

Explanation / Answer

Answer:1 Journal Entry:

25 Dec Treasury Stock A/C Dr. $103200

                 To cash A/C                                $103200

26 Dec You need to know how many shares are outstanding. If there were 100,000 shares outstanding, the entry would be:

Debit Retained Earnings $160,000
Credit Dividends Payable $160,000

26 Dec

Debit Notes Receivable (Short Term) $14,000
Credit Accounts Receivable $14,000

29 Dec

Debit Land $58,000
Credit Common Stock $58,000

29 Dec

You can include the cost incurred (including legal fees) to acquire the land in the capitalized value of the land. The entry would therefore be:

Debit Land $2,950
Credit Cash $2,950

29 Dec

Debit Accounts receivable A/C Dr. $47,040

Crdeit Sales A/C $47,040

30 Dec

Debit: advertising expense 1500
Credit: Cash $1500

30 Dec

Debit: Auto/Truck Expense 750
Credit: Cash 750

30 Dec

Debit: Inventory $63,940
Credit: Accounts Payable $63,940

30 Dec

Debit: Other Assets - Sinking fund $14000
Credit: Cash 14000

30 dec

D: Accounts Rec. 24,350
C: Revenue 24350

31 Dec

Debit: Cash 24730
Credit: Accounts Rec. 24730

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