Question

Robinson Corporation maintains a perpetual inventory system.
All sales on account are subject to terms of 2/10, n/30.  Discounts are taken and granted only when the terms are met.
The cost of all inventory sold in December was 80% of the sales price.
Transactions for the month of December are as follows:
Dec
3	Received a check from Swanson Brothers Construction in full payment of invoice dated November 26.  The invoice amount was $24,050.
3	Sold  sewer  and  drainage  pipe  to  Beverly’s  Building  Products  on  account for $13,150.
3	Purchased  copper  tubing  and  fittings  from  Edward’s  Plumbing  Supplies  Inc.  on account for $24,320, terms n/60.
3	Issued  check for  $26,400  to  Oxenford  Copperworks  in  settlement  of  the balance owed on account, no discount taken.
3	Issued check for $810 to Standard Oil Co. in payment of gas, oil, and truck repair.
6	Sold cast pipe to Trudy's Plumbing on account for $29,300
6	Received a check in the amount of $27,800 form Coconino Contractors, Inc. in full payment of invoice dated October 20
6	Purchased bathroom fixtures from Phoenix Plastics, on account for $52,700, terms 1/10, n/30
12	Received a check from Trudy's Plumbing in payment of invoice from December 6.
13	Issued check for $399 in payment of November telephone bill
14	Issued check to Phoenix Plastics, Inc in payment of invoice from December 6
20	Purchased supplies in the amount of $1,360. (Note: Debit the asset account)
24	A half-acre parcel of land adjacent to the building is acquired in exchange for 600 share of common stock.  The land has a fair value of $54,000 and will be used immediately.
26	Board of directors declared a total dividend of $8,740 payable on January 14 to stockholders of record on December 26
27	An invoice in the amount of $2,650 is received from a lawyer for legal services involved in the acquisition of the land purchased on Dec. 24
31	Sold a piece of equipment for $2,500 cash.  The original cost was $7,000, a life of 10 years, and accumulated depreciation recorded through 12/31/17 of $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, then record the sale
31	Cash sales for December totalled $52,272
Instructions:
1	Make the appropriate journal entries in the General Journal for the above December transactions.

Answer 1

Date	Particular	Dr.	Cr.
December 3	Bank	24050
	To Swanson brothers		24050
	(Received check against full payment of invoice dated Nov. 16)
December 3	Beverly's building product	13150
	To sale		13150
	(Sold goods on accounts)
December 3	Purchase	24320
	To Edward plumbing supplies		24320
	(Purchases goods credit from Edwad’s Plumbing)
December 3	Oxenford copper works	26400
	To Bank		26400
	(Check issued for balance owned on account to Oxenford copper works)
December 3	Standard Oil co.	810
	To bank		810
	(Issued check to Standard Oil co. for gas, oil etc.)
December 6	Turdy's plumbing	29300
	To sale		29300
	(Sold goods on account)
December 6	Bank	27800
	To Coconino contractors		27800
	(Receive check from Coconino contractors for invoice dated Oct 20)
December 6	Fixtures A/c	52700
	To Phoenix plastics		52700
	(Purchases goods on accounts)
December 12	Bank A/c	28714
	Cash discount A/c		586
	To Turdy plumbing		29300
	(Received check for invoice from December 6)
December 13	Telephone bill A/c	399
	To bank		399
	(Issued check for make payment of telephone bill)
December 14	Phoneix plastics	52700
	to bank		51646
	To discount received		1054
	(Issued check to Phoenix Plastics, Inc for make payment of invoice from December 6)
December 20	Assets A/c	1360
	To Cash		1360
	(Purchased supplies in the amount)
December 24	Land A/c	54000
	To Common stock		54000
	(Issued common stock against land, has a fair value of $54,000)
December 26	Retained earnings	8740
	To dividend payable		8740
	(Declared a total dividend of $8,740 payable on January 14 to stockholders)
December 27	Land A/c	2650
	To lawyer fees payable		2650
	(Invoice in the amount of $2,650 for lawyer for legal services involved in the acquisition of the land purchased on Dec. 24)
December 31	Cash	2500
	Depreciation	4550
	To equipment		7000
	To profit on sale of equipment		50
December 31	Cash A/c	52272
	To sale		52272