$9$ January $11$ GBI received payment from Windy City Bikes for their order from January $3.$

Windy City paid the invoice amount less the discount for paying within $10$ days.

$10$ January $12$ GBI paid $$185,640$ via bank transfer for the inventory order that they received

from Dallas Bike Basics January $3.$

$11$ January $13$ To better track inventory, GBI ordered a bar$-$coding and tracking system which

will be installed and tested by Computer Specialists, Inc. $($CSI$).$ The system will

allow employees to track inventory using mobile devices and special software

which will link into their new computerized accounting system. The barcode

system costs $$5,995($including sales tax$)$ and CSI will charge GBI $$1,200$ for the

installation and tests. GBI paid a deposit of $$3,000$ on the system and the

remainder is due and payable when the system is installed. GBI will classify the

bar$-$coding system as $$Production Machinery, Equipment and Fixtures$.$

$12$ January $17$ GBI paid an invoice from Lightbulb Accessory Kits for ordered goods that were

received on December $20.$ The amount of the invoice from Lightbulb is $$17,010$

due net $30.$

$13$ January $17$ The city of Denver will be hosting a decathlon at the end of February. The event

is expected to create demand for high quality bikes. Rocky Mountain Bikes in

Denver, CO placed an order with GBI for $$128,130$ worth of bicycles to be

delivered immediately. Rocky Mountain will pay the shipping. The bikes cost

GBI $$79,441.$ GBI shipped the order immediately so that Rocky Mountain can

start promoting the bikes. Because Rocky Mountain is a good customer, GBI is

giving them special terms of net $45$ days on this order.

$14$ January $17$ GBI received raw materials inventory ordered from Space Bike Composites

January $11.$ Shipping charges of $$802$ were included in the $$100,220$ invoice

from Space Bike.

$15$ January $17$ GBI received notice that Larry$$s Bicycle Emporium had declared section $13$

bankruptcy which meant GBI would not be able to collect the $$1,610$ that

Larry$$s owed them.

$16$ January $18$ GBI received a $$89,960$ funds transfer from Silicon Valley Bikes in Palo Alto for

the balance due on their account.

$17$ January $19$ GBI paid Staples for the office supplies they received January $11.$

$18$ January $19$ SoCal Bikes in Irvine, CA placed an order for $$2,300$ in bicycle helmets for a

special event in February. The merchandise cost GBI $$1,380.$ SoCal sent a truck

to the GBI distribution center in San Diego, CA and picked up the merchandise

directly from GBI$$s warehouse. Terms of payment are net $30.($Do not forget to

charge sales tax of $8\mathrm{.}75\%$ for this order.$)$

Excel: Financial Accounting Review Practice Set Page $7$ of $9$

$19$ January $24$ Beantown Bikes in Boston, MA placed an order with GBI for $$27,450$ in bicycles.

The cost of the bicycles is $$17,092.$ Beantown Bikes is a new customer. Its

buyers saw GBI$$s booth at a trade show. Because Beantown is a new customer,

they must either wait until their credit can be approved or pay for the order

before GBI will ship the bikes to them.

$20$ January $25$ GBI has been offered the opportunity to advertise in the Bicycle Times online

magazine for a reduced price if they pay for three months in advance.

Considering the upcoming Tour de France, the advertising is a great

opportunity for GBI to get additional recognition. The advertising will start in

February. GBI wrote a check for $$15,000$ for three months of advertising.

$21$ January $26$ GBI received notification from their bank that $$27,450$ had been transferred to

their account from Beantown Bikes, so GBI$$s warehouse personnel shipped

Beantown$$s order. Beantown will be responsible for paying Fed$-$X $$360$ for

shipping the order.

$22$ January $27$ The county approved GBI$$s building plans for their new warehouse. Estimated

building costs are $$1,050,000$ which will be funded via a mortgage from Bank of

America. GBI plans to break ground on the new building April $18$th of this year.

$23$ January $27$ GBI sent a $$30,890$ check to Night Rider Aluminum Products for an order of

bicycle parts GBI received December $30$th$.$

$24$ January $27$ Big Apple Bikes in New York City is expanding to another location in New York

and needs to stock the new location. GBI received a phone order from Big

Apple for $$232,315$ in bicycles and $$108,490$ in bicycle accessories and safety

gear at special discount prices. The cost of the bicycles in this order is $$169,586$

and the cost of the accessories is $$65,094.$ Big Apple will have a contract

trucking company pick up the order when it is ready. The order is sent to GBI$$s

warehouse for picking and packing which may take a couple days. Payment

terms to Big Apple for this order are net $30.$

$25$ January $31$ GBI pays sales tax once a quarter via the state$$s electronic filing and payment

system. GBI filed its return and paid $$3,063$ in sales tax for the quarter ending

December $31.$