Assignment Steps

1. Record the daily transactions if appropriate, (some events may not involve journal entries), as general journal entries into Excel.
2. The next step is to record the adjusting entries into the general journal and then a trial balance.
3. Record closing entries in your trial balance as if this were a year-end close.

Account Balances as of December 31^st

			Debit Balance		Credit Balance
	100000	Bank Account	$277,518
	110100	Accounts Receivable (Direct Posting Account)	92,670
	200900	Inventory-Raw Materials (Direct Post)	52,000
	200910	Inventory-Finished Goods (Direct Post)	281,298
	200920	Inventory-Trading Goods (Direct Post)	66,474
	220110	Land (Direct Post)	528,000
	300200	Accounts Payable (Direct Posting Account)			48,000
	300800	Accrued Expenses			1,200
	320000	Accrued Tax Output			3,000
	329000	Common Stock			500,000
	329100	Additional Paid-in-Capital			52,870
	330010	Retained Earnings (Direct Posting)			692,890

Events During January

Event	Date	Event Description
1	3-Jan	GBI received $60,000 in safety product inventory and $40,000 in raw materials from VENDOR1. This inventory was ordered on December 28. The payment terms for the invoice total of $100,000 are net 10 days.
2	7-Jan	GBI received payment of $24,000 from CUSTOMER2 for the balance due on their account.
3	10-Jan	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 31st.) 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.
4	12-Jan	GBI paid for the inventory order (via bank transfer) that they received from VENDOR1 back on January 3.
5	13-Jan	In order to better track inventory, GBI ordered a bar-coding and tracking system with a cost of $6,000 (including sales tax). GBI will classify the bar-coding system as Production Machinery, Equipment and Fixtures.
6	17-Jan	CUSTOMER3 placed an order with GBI for $128,000 worth of bicycles to be delivered immediately. CUSTOMER3 will pay the shipping. The bikes cost GBI $78000. GBI shipped the order immediately and is giving the customer special terms of net 45 days on this order.
7	18-Jan	GBI received a $90,000 funds transfer from CUSTOMER4 for the balance due on their account.
8	24-Jan	Customer6 placed an order with GBI for $27,000 in bicycles. The cost of the bicycles is $17,000. Because Customer6 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.
9	26-Jan	GBI received notification from their bank that Cutomer6 had transferred funds into their account for their prior order, so GBIs warehouse personnel shipped the order.
10	31-Jan	GBI pays sales tax once a quarter via the states electronic filing and payment system. GBI filed its return and paid its sales tax for the quarter ending December 31.
11	31-Jan	CSI installed and tested the new barcode system as ordered on 13-JAN. The warehouse manager approved the installation and commented that she thinks it works great. GBI wrote a check to CSI for the balance owed and gave it to the installer.

Adjustment information as of January 31, not already given in the original transaction(s):

1. As a control measure, physical inventories are taken on a periodic basis alternating between the raw materials inventory, finished goods inventory and trading goods inventory. Physical inventory of the finished goods inventory was taken at the end of January. It was determined that the value of the finished goods merchandise on hand was $175,000.

2. GBI used the Internet to review the monthly charges for utilities the business consumed during January. Based on the Internet report, the amount to be billed by the utilities company for January usage is the same as was billed for December.