CAN YOU PLEASE DO CLOSING AND ADJUSTING ENTRIES? THANK YOU!

CA

Global Bike Inc. Trial Balance Check Figures OR Transactions DR CR 155,32010022366.00 Ending Balance DR CR 125.97/2009 Adjustmente DR CR EOM Closing Entries DR DB Ending Balance DR CR Adjusted Balance DR CR 125.972.00 471,436.25 471,436.25 890.00 1.610.00 350.00 137,598.00 480.00 1,100.00 169,598.00 15,179.00 256.119.00 - 620.00 169,598.00 15.179.00 40.710.00 2,500.00 15.000.00 620.00 169,598.00 15 179.00 40.710.00 2.500.00 15,000.00 Beginning Balance CR 252 518.00 108.420.00 2,500.00 750.00 32.000.00 281,298.00 66.474.00 5.000.00 1.000.00 425.000.00 576,000.00 - 76,800.00 47,900.00 . 110,000.00 988.00 3,063.00 1,000,000.00 507,209.00 5,000.00 15.00 - 2.500.00 15,000.00 1.000,00 . - - - 425,000.00 583,195.00 7,195.00 425,000.00 583,195.00 425,000.00 583,195.00 193,390.00 Account Account Title 100000 Bank Account 110100 Accounts Receivable Direct Posting Account 110150 Allowance for Bad Debt 200600 Inventory-Operating Supplies 200900 Inventory-Raw Materials Direct Post) 200910 Inventory-Finished Goods (Direct Post) 200920 Inventory-Trading Goods Direct Post) 210000 Prepaid insurance 212000 Prepaid Advertising 216000 Deposits 220110 Land 220210 Production Machinery, Equipment and Fixtures 220310 Accumulated Depreciation - Production mach, Equip. 300200 Accounts Payable (Direct Posting Account) 300700 Payables-Salaries and Wages 300800 Accrued Expense 320000 Accrued Tax - Output 329000 Common Stock 330010 Retained Earnings (Direct Post) 600000 Sales Revenue 610000 Sales Discount 700000 Labor Expense 740000 Supplies Expense 740300 Rent Expense 740400 Insurance Expense 741200 Bad Debt Expense 741500 Utlities Expense 741800 Depreciation Expense 741900 Advertising Expense 780000 Cost of Goods Sold 100.220.00 141.070.00 110,000.00 988.00 3,053.00 110,000.00 1.045.00 . . 80,000.00 100.220.00 110,000.00 1.046.00 201.25 1.000.000.00 507 209.00 520,685.00 80,000.00 100,220.00 110,000.00 1,045.00 201.25 1,000,000.00 554,385.82 20125 201.25 1,000,000.00 507209.00 520,685.00 440.00 440.00 . 440.00 110,000.00 480.00 4,500.00 2,500.00 110.000.00 480.00 . 2 500.00 ... 440.00 110.000.00 480.00 4.500.00 2.500.00 4,500.00 4.500.00 1,046,00 1,0460 1,048.00 1.000.00 1,000.00 1,000.00 347,875.00 1,000.00 347.875.00 1,748.460.00 1.748,450.00 1,478,835,25 1,478,835.25 2,206,005.25 2.206,005.25 119,795.18 119,795.18 2,322,718.43 2,322,718.43 520,685.00 520.685.00 1,849,210.25 1.849,210.25 Detailed Assignment Requirements The next few pages show the balances in GBI accounts as of December 31st and then the descriptions of events occurring during January for which you are to make general journal entries in a manual accounting system. Later this semester, you will enter all the data into the SAP ERP system. When you enter your data into the SAP system the resulting financial information from the manual system and the SAP system should match exactly. Assignment Steps 1. Record the daily transactions if appropriate. (some events presented do not require journal entries), as general journal entries into Excel i A sample problem and solution (Tucker Boats) has been made available to you to study on the D2L Content page. Looking over the solution details to the sample problem may help review your financial accounting and Excel skills. ii. You must use Excel formulas in this assignment. For example, you should design your Journal Entry worksheet so that by entering the account number, the proper account title is automatically filled in the adjacent column. E SAP AG as modified by Brenden Schaaf 2020 Page 5 2. 3. CASE STUDY ill. The use of t-accounts is not allowed in your submission file. Any changes to a joumal entry need to be reflected through the use of formulas, on the trial balance worksheet. iv. If done correctly, changing an account number on a journal entry will result in related changes to the numbers on your trial balance worksheet. As much as possible, you should create links between your spreadsheets and complete formulas to expedite this process and minimize the risk of an error in data entry The next step is to record the adjusting entries into the general journal and then link them into the trial balance Record closing entries in your trial balance as if this were a year-end close. Closing entries must consist only of Excel formulas on your trial balance worksheet (1.e. nothing on the journal entries worksheet). In addition to checking a sample of your journal entries, I will do one or more of the following to further test your work: Delete one or more journal entries (for example, for the last 10 days of the month). ii. Change some account numbers and or values on journal entries. iii. Change beginning balances from debitis to credits or vice versa In all cases. your Excel file should be designed in such a way to appropriately recalculate the trial balance worksheet to reflect the kinds of data changes made above. In no case should you "hard code" values on your trial balance that will prevent this from happening (or you will lose points). There also will need to be formulas in all cells in case I change a debit to credit or vice versa. Changes should also not result in negative values appearing on your trial balance worksheet (a negative debit should be a positive number in the credit column or vice versa). 4. G/L Account 100000 110100 110150 110200 200600 200900 200910 200920 200930 210000 211000 212000 215000 216000 220000 220110 220210 220310 220400 220500 220600 220700 300100 300200 300300 300400 300500 300600 300700 300800 310000 320000 321000 322000 329000 329100 330010 600000 610000 620000 630000 640000 650000 650100 700000 G/L Acct Long Text Bank Account Accounts Receivable (Direct Posting Account) Allowance for Bad Debt Interest Receivable Inventory-Operating Supplies Inventory-Raw Materials (Direct Post) Inventory-Finished Goods (Direct Post) Inventory-Trading Goods (Direct Post) Inventory-Semi-finished Goods (Direct Post) Prepaid Insurance Prepaid Supplies Prepaid Advertising Prepaid Rent Deposits Notes Receivable Land Production Machinery, Equipment, and Fixtures Accumulated Depreciation - Production mach. Equip Office Furniture Accumulated Depreciation Office Furniture Office Equip and Computers Accumulated Depreciation - Office Equipment Payables-Income Taxes Accounts Payable (Direct Posting Account) Payables-Interest Payables-Short-Term Notes Payables-Long-Term Notes Payables-Commissions Payables-Salaries and Wages Accrued Expense Goods Receipt / Invoice Receipt Account Accrued Tax - Output Accrued Tax- Input Unearned Revenues Common Stock Additional Paid-in-Capital Retained Earnings (Direct Post) Sales Revenue Sales Discount Miscellaneous Revenue Revenue Deductions Gain or Loss on Sale of Assets Customer Service Revenue Customer Service Revenue Settlement Labor Expense 720000 720100 720200 720300 740000 740200 740300 740400 740500 740600 740700 740800 740900 741000 741200 741300 741400 741500 741600 741700 741800 741900 742000 742100 760000 760100 770000 780000 Raw Material Consumption Expense Finished Product Consumption Expense Trading Good Consumption Expense Semi-Finished Consumption Expense Supplies Expense Legal and Professional Expense Rent Expense Insurance Expense Payroll Expense-Office Payroll Expense-Administrative Sales Expense Tax Expense - Property Tax Expense-Income Miscellaneous Expense Bad Debt Expense Information Technology Expense Account Production Order Variance Expense Account Utility Expense Manufacturing Output settlement Manufacturing Output Settlement Variance Depreciation Expense Advertising Expense Vendor Discounts Missed Shipping Expense Purchase Price Difference Production Variance Research and Development Cost of Goods Sold Account Balances as of December 31, 2019 Credit Balance Debit Balance $252,518 108.420 2,500 100000 Bank Account 110100 Accounts Receivable (Direct Posting Account) 110150 Allowance for Bad Debts 200600 Inventory-Operating Supplies 200900 Inventory-Raw Materials (Direct Post) 200910 Inventory-Finished Goods (Direct Post) 200920 Inventory-Trading Goods (Direct Post) 210000 Prepaid Insurance 212000 Prepaid Advertising 220110 Land (Direct Post) 220210 Production Machinery, Equip & Fixtures(Dir.Post) 220310 Accumulated Depreciation Machinery (Direct Post) 300200 Accounts Payable (Direct Posting Account) 300700 Payables-Salaries and Wages 300800 Accrued Expense 320000 Accrued Tax - Output 329000 Common Stock 330010 Retained Earnings (Direct Posting) 750 32,000 281,298 66,474 5,000 1,000 425,000 576,000 76,800 47,900 110,000 988 3,063 1,000,000 507,209 CASE STUDY 1 January 3 2 3 4 January 7 5 January 10 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. GBI received $55,692 in safety product inventory and $37.128 in raw materials from Dallas Bike Basies. 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. 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. GBI received payment of S16,850 from Northwest Bikes in Seattle, WA for the balance due on their account. GBI's 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) 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 GBI's advertisement in the English language edition of the Italian Cycling Journal was published today. This ad was prepaid at the end of July for six months of advertising, August through January, (Five months of advertising have already been used.) The office manager in San Diego ordered $350 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 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 supplies used during the month. GBI ordered $99.418 in raw materials from Space Bike Composites in Houston, TX. The 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 than the discount for paying within 10 days. 7 January 11 8 9 CASE STUDY 10 January 12 11 January 13 12 January 17 13 GBI paid $92,820 via bank transfer for the inventory order that they received from Dallas Bike Basics on January 3. 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". 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. 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. GBI received raw materials inventory ordered from Space Bike Composites on 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. GBI received an $89,960 funds transfer from Silicon Valley Bikes in Palo Alto for the balance due on their account. GBI paid Staples for the office supplies they received on January 11. 14 15 16 January 18 17 January 19 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 GBI distribution center in San Diego, CA and picked up the merchandise directly from GBI's warehouse. The terms of payment are net 30. (Don't forget to charge a sales tax of 8.75% for this order) 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 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. 19 January 24 customer 20 January 25 21 January 26 22 January 27 23 24 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. In light of the upcoming Tour de France, 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 $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 FedEx $360 for shipping the order. The county approved GBI's building plans for its 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 on April 18% of this year. GBI sent a $30,890 check to Night Rider Aluminum Products for an order of bicycle Parts GBI received on 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 of 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 January'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, 25 January 31 26 27 28 Adjustment information as of January 31, not already given in the original transaction(s): 1. Based on prior experience, GBI estimates that approximately % 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 expenses based on anticipated bad debts as an adjusting entry each month. 2. As a control measure, physical inventories are taken periodically alternating between the raw materials inventory, finished goods inventory and trading goods inventory. A 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, 2018, 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 of 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 monthly (i.e. number of days in the month is not of consequence). 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 utility company for January usage is $1,046 6. Liability insurance for the six months ending on February 28 for $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's salaries. (For purposes of this assignment, ignore manufacturing and assume all labor costs will be expensed.)