Can someone please help with the adjusted balance portion? General Journal COA T-Accounts beginning bal Account Balances as of December 31 100000 Bank Account 110100 Accounts Receivable (Direct Posting Account 110150 Allowance for Bad Debts 110200 interest Receivable 200000 Inventory-Operating Supplies 200900 inventory Raw Materials (Direct Post) 200910 Inventory Finished Goods (Direct Post) Debit Balance 106.420 2.500 750 32.000 281296 200920 inventory Trading Goods (Drect Post) 44 200930 Inventory-Semi-frished Goods (Direct Post) 210000 Prepaid Insurance 5000 211000 Prepaid Supp 212000 Prepaid Advertising 215000 Prepaid Rent 216000 Deposits on Purchases 220110 Land (Direct Post 220000 Notes Receivable 300100 Payables-Income Taxes 4500 47.50 Event Date Description of Event 1 January 3 Employees are paid monthly on the first business day of the month for work done in the previous month. The total payroll for the previous month is $110,000. (Ignore payroll taxes for this assignment.) Accounting wrote and distributed the paychecks. 4 January GBI received $55,692 in safety product inventory and $37,128 in raw materials from Dallas Bike Basics. sics. This inventory was ordered on December 28. The payment terms for the invoice total of $92,820 are net 10 days. GBI paid the CWX shipping company $550 with a manual check for the shipment of the goods. The bill of lading showed that the safety product inventory arrived in 6 boxes with a total weight of 120 lbs and the raw materials came on a pallet and weighed 100 lbs. 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" of this year. 23 Windy City Bikes in Chicago, IL ordered $22,000 of bicycle accessories from GBI. The cost of the accessories (to GBI) is $15,180. The goods were shipped to Windy City immediately via UPS using Windy City's UPS shipping number. The terms of payment for Windy City's order are 2/10 net 30 days. 24 GBI received payment of $16,850 from Northwest Bikes in Seattle WA for the balance due on their account. y website is updated at the end of 15 January 10|GBI's account on the utility cod. GBI uses this data to ac each month when the meter is t the expenses at the end of each month (in this case on December 31") 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 of $988 via the company's automatic electronic bill pay program. 25 January 31 26 GB's advertisement in the English language edition of Italian Cycling Journal v sal was published today. This ad was pre as prepaid at the end of J for six months of advertising. August through January. (Five months of advertising have already been used.) 27 7 January 11 supplies from Staples. While on the way back from a delivery, one of The office manager in San Diego ordered $350 of office (operating) the warehouse staff picked up the Staples order and brought it to GBI's 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. GBI ordered $99,418 in raw materials from Space Bike Composites in Houston, TX. Terms of payment to Space Bikes are net 30. GBI received payment from Windy City Bikes for their order from January 3. Windy City paid the invoice amount less the discount paying within 10 days. 12GBI paid $92.820 via bank transfer for the inventory order that they 10 January 12 received from Dallas Bike Basics January 3 18 425.000 220210 Production Machinery, Equip & FixturesDePost) 15.000 220310 Accumulated Depreciation Machinery (Direct Post) 305.000 19 220400 Office Furniture 220500 Accumulated Depreciation-Office Future 220600 Office Equipment and Computers 220700 Accumulated Depreciation-Office Equipment 300200 Accounts Payable (Direct Posting Account) 300300 Payables-Interest 300400 Payables-Short-Term Notes 300500 Payables-Long-Term Notes 300600 Payables Commissions 300700 Payables-Salaries and Wages 11000 300800 Accrued Expenses 310000 Goods Receipt/Invoice Receipt Account 320000 Accrued Tax-Output 321000 Accrued Tax-Inpu 322000 Unearned Revenues 329000 Common Stock 329100 Additional Paid-in-Capital 600000 Sales Revenue 330010 Retained Earnings (Direct Posting) 610000 Sales Discount 620000 Miscellaneous Revenue 630000 Revenue Deductions 640000 Gain or Loss on Sale of Assets 650000 Customer Service Revenue 650100 Customer Service Revenue Settlement 720000 Raw Material Consumption Expense 720100 Finished Product Consumption Expense 720200 Trading Good Consumption Expense 720300 Semi-Finished Consumption Expense 740000 Supplies Expense 740100 Telephone and Intemet Expense 740200 Legal and Professional Expense 740300 Rent Expense 740400 Insurance Expense 740500 Payroll Expense-Office 740600 Payroll Expense-Administrative 740700 Sales Expense 740800 Tax Expense- Property 740900 Tax Expense- Income 741000 Miscellaneous Expense 741100 Wamanty Expense 741200 Bad Debt Expense 741300 Information Technology Expense Account 741400 Production Order Variance Expense Account 741600 Manufacturing Output settlement 741700 Manufacturing Output Settlement Variance 741800 Depreciation Expense 741900 Advertising Expense 742000 Vendor Discounts Missed 742100 Shipping Expense 760000 Purchase Price Difference 760100 Production Variance 770000 Research and Development 780000 Cost of Goods Sold 300 1.000.00 1800 11 January 13 in order 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 inventory u 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 Fi d Fixtures y using mobile devices and special to track 12 January 17that were received on December 20. The amount of the invoice from 17GBI paid an invoice from Lightbulb Accessory Kits for ordered goods Lightbulb is $17,010 due net 30. 15 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 M y Mountain is a good customer, GBI is giving them special terms of net 45 days on this order. 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 GBI received notice that Bunky's Bicycle Emporium had declared section 13 bankruptcy which meant GBI would not be able to collect the $1,610 that Bunky's owed them 16 January 18 GBI received a $89,960 funds transfer from Silicon Valley Bikes in 18Palo Alto for the balance due on their account to GBI paid Staples for the office supplies they received January 11. 17 January 199 18 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 GB distribution center in San Diego, CA and picked up the merchandise directly from GB's warehouse. Terms of payment sales tax of 8.75% for tent are net 30. (Don't forget to charge 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 ether wait until their can be approved or pay for the order before GBI will ship them. credit GBI has been offered the opportunity to advertise in the Bicycle 20 January 25 Times online magazine for a reduced price if they pay for three 2.08746 21 January 26 months in in advance. In i In light of the i 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 GBI received notification from their bank that S that $27,450 had been transferred to their account from Beantown Bikes, so GB's warehouse personnel shipped Beantown's order. Beantown will be responsible-les-paying hipping the order. GBI sent a $30,890 check to Night Rider Aluminum Products for ant order of bicycle parts GBI received December 30th. 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. 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. GBI paid February's rent of $4,500 for the office and warehouse space in San Diego. CSI installed and tested the new barcode system. The warehouse manager approved the installation and commented that she thinks it works great. GBI wrote a check to CSI for $4,195 and gave it to the installer. Big Apple's truck arrived at GBI's warehouse and picked up the order from January 27 Adjustment information as of January 31, not already given in the original transaction(s): 1. Based on prior experience, GBI estimates that approximately 2% of the net credit sales (gross credit sales minus returns of credit sales) for the month will become bad debt. GBI writes off bad debts as they occur and recognizes bad debt expense based on anticipated bad debts as an adjusting entry each month. 2. 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 trading goods inventory was taken at the end of January. It was determined that the value of the trading goods merchandise on hand was $40,710. 3. GBI counted the office supplies on hand after the close of business on the last day of the month and determined the cost of the unused office supplies to be $620. 4. Production Machinery, Equipment and Fixtures were placed in service on January 1, 2008, are expected to last 15 years with no salvage value. The bar-code system has a 5 year life and no salvage value. GBI depreciates fixed assets on a straight-line basis and those assets acquired in the first half f the month are depreciated for the entire month, while fixed assets placed in service during the last half of the month are not depreciated until the second month. Depreciation is rounded to the nearest dollar and assets are depreciated on a monthly basis (i.e. number of days in the month is not of consequence). The adjusted balance should be $1,605,014 5. 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 $1,046. 6. Liability insurance for the six-month period ending on February 28 in the amount of $15,000 was paid last August on the first of the month. Liability insurance is assumed to be utilized uniformly over the six-month policy period. 7. GBI needs to recognize the wages expense for the month. Since all employees are paid salaries and no changes have been made, this amount is the same as the previous month salaries. (For purposes of this assignment, ignore manufacturing and assume all labor costs will be expensed.) 8. Assume GBI made a Rent prepayment of $4500 in December last year. It is now time to make the adjustment for this rent. PIC COLLAGE