Account Balances as of December 31 st Debit Balance Credit Balance 100000 Bank Account $300,318 110100 Accounts Receivable (Direct Posting Account) 94,670 110150 Allowance for Bad Debts 2,600 200600 Inventory Operating Supplies 8,832 200900 Inventory Raw Materials (Direct Post) 52,000 200910 Inventory Finished Goods (Direct Post) 281,298 200920 Inventory Trading Goods (Direct Post) 66,474 210000 Prepaid Insurance 3,000 212000 Prepaid Advertising 2,400 220110 Land (Direct Post) 528,000 220210 Production Machinery, Equip Fixtures (Dir Post) 915,000 220310 Accumulated Depreciation Machinery (Direct Post) 408,000 300200 Accounts Payable (Direct Posting Account) 48,000 300700 Payables Salaries and Wages 94,313 300800 Accrued Expenses 2,200 320000 Accrued Tax Output 4,000 329000 Common Stock 1,010,000 329100 Additional Paid in Capital 52,870 330010 Retained Earnings (Direct Posting) 630,009 JOURNAL ENTRIES OF 5 January 10 GBIs account on the utility company website is updated at the end of each month when the meter is read GBI uses this data to accrue the expenses at the end of each month (in this case on December 31 st ) This allows recognition of the expense in the correct period Expenses are usually accrued at the end of the month as Accrued Expenses GBI paid the December utility bill via the companys automatic electronic bill pay program 6 GBIs advertisement in the English language edition of Italian Cycling Journal was published today This ad was prepaid at the end of August for six months of advertising, September through February, (Four months of advertising have already been used ) 7 January 11 The office manager in San Diego ordered $380 of office (operating) supplies from Staples While on the way back from a delivery, one of the warehouse staff picked up the Staples order and brought it to GBIs office GBI has an account with Staples and payment terms are net 10 Operating supplies expense is figured at the end of the month determined by the amount of supplies used during the month 8 GBI ordered $75000 in raw materials from Space Bike Composites in Houston, TX Terms of payment to Space Bikes are net 30 9 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

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Account Balances as of December 31^st


		Debit Balance	Credit Balance
100000	Bank Account	$300,318
110100	Accounts Receivable (Direct Posting Account)	94,670
110150	Allowance for Bad Debts		2,600
200600	Inventory-Operating Supplies	8,832
200900	Inventory-Raw Materials (Direct Post)	52,000
200910	Inventory-Finished Goods (Direct Post)	281,298
200920	Inventory-Trading Goods (Direct Post)	66,474
210000	Prepaid Insurance	3,000
212000	Prepaid Advertising	2,400
220110	Land (Direct Post)	528,000
220210	Production Machinery, Equip & Fixtures (Dir.Post)	915,000
220310	Accumulated Depreciation-Machinery (Direct Post)		408,000
300200	Accounts Payable (Direct Posting Account)		48,000
300700	Payables-Salaries and Wages		94,313
300800	Accrued Expenses		2,200
320000	Accrued Tax Output		4,000
329000	Common Stock		1,010,000
329100	Additional Paid-in-Capital		52,870
330010	Retained Earnings (Direct Posting)		630,009

JOURNAL ENTRIES OF:

5	January 10	GBIs account on the utility company website is updated at the end of each month when the meter is read. GBI uses this data to accrue the expenses at the end of each month (in this case on December 31^st.) This allows recognition of the expense in the correct period. Expenses are usually accrued at the end of the month as Accrued Expenses. GBI paid the December utility bill via the companys automatic electronic bill pay program.
6		GBIs advertisement in the English language edition of Italian Cycling Journal was published today. This ad was prepaid at the end of August for six months of advertising, September through February, (Four months of advertising have already been used.)
7	January 11	The office manager in San Diego ordered $380 of office (operating) supplies from Staples. While on the way back from a delivery, one of the warehouse staff picked up the Staples order and brought it to GBIs office. GBI has an account with Staples and payment terms are net 10. Operating supplies expense is figured at the end of the month determined by the amount of supplies used during the month.
8		GBI ordered $75000 in raw materials from Space Bike Composites in Houston, TX. Terms of payment to Space Bikes are net 30.
9		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.