Question:
Big Oak Lumber is a lumber yard on Angel Island. Some of Big Oak's transactions during the current year are as follows.
Apr:15 Sold lumber on account to Hard Hat Construction, $19,700. The inventory subsidary ledger shows the cost of this merchandise was $10,300.
Apr 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 $3700 owed LHP Company
Dec 31 Big Oak's personnel counted the inventory on hand and determined is cost to be $114,000. The accounting records, however, indicate inventory of $116,500 and a cost of goods sold of $721,000. The physical count of the inventory was observed by the company's auditors and is considered correct
Prepare journal entries to record these transactions and events in the accounting records of Big Oak Lumber.(The company uses a perpetual inventory system