Date 1/3/2021 Credit Transaction # 1 Journal Entry # 1 General Journal Account # Account Name 300700 Payables-Salaries and Wages 100000 Bank Account To Record Salaries Payable Paid. Debit $ 110,000.00 $ 110,000.00 1/3/2021 2 N $ 55,692.00 $ 37,128.00 200910 Inventory-Finished Goods (Direct Post) 200900 Inventory-Raw Materials (Direct Post) 300000 Payables-Trade Accounts 100000 Bank Account #N/A $ 92,820.00 $ 550.00 1/3/2021 3 3 3 $ 22,000.00 110000 Trade Accounts Receivable 600000 Sales Revenue #N/A $ 22,000.00 1/3/2021 3 4 $ 15,180.00 780000 Cost of Goods Sold 200910 Inventory-Finished Goods (Direct Post) #N/A $ 15,180.00 1/7/2021 4 5 $ 16,850.00 100000 Bank Account 110000 Trade Accounts Receivable #N/A $ 16,850.00 1/10/2021 5 6 $ 988.00 300800 Accrued Expenses 100000 Bank Account $ 988.00 #N/A 1/11/2021 7 7 $ 350.00 200600 Inventory-Operating Supplies 300000 Payables-Trade Accounts #N/A $ 350.00 1/11/2021 8 8 $ 99,418.00 200900 Inventory-Raw Materials (Direct Post) 300000 Payables-Trade Accounts #N/A $ 99,418.00 1/11/2021 9 9 $ 21,560.00 $ 440.00 100000 Bank Account 610000 Sales Discounts 110000 Trade Accounts Receivable #N/A $ 22,000.00 1/12/2021 10 10 $ 92,820.00 300000 Payables-Trade Accounts 100000 Bank Account #N/A $ 92,820.00 1 5 1/13/2021 11 11 $ 3,000.00 216000 Deposits on Purchases 100000 Bank Account #N/A $ 3,000.00 1/17/2021 12 12 $ 17,010.00 300000 Payables-Trade Accounts 100000 Bank Account #N/A $ 17,010.00 1 1/17/2021 13 13 $ 128,130.00 110000 Trade Accounts Receivable 600000 Sales Revenue #N/A $ 128,130.00 1/17/2021 13 14 $ 79,441.00 780000 Cost of Goods Sold 200910 Inventory-Finished Goods (Direct Post) #N/A $ 79,441.00 1/17/2021 14 15 $ 100,720.00 200900 Inventory-Raw Materials (Direct Post) 300000 Payables-Trade Accounts #N/A $ 100,720.00 1/17/2021 15 16 $ 1,610.00 110400 Allowance for Bad Debt 110000 Trade Accounts Receivable #N/A $ 1,610.00 1/18/2021 16 17 $ 89,960.00 100000 Bank Account 110000 Trade Accounts Receivable #N/A $ 89,960.00 1/19/2021 17 18 $ 350.00 300000 Payables-Trade Accounts 100000 Bank Account #N/A $ 350.00 1/19/2021 18 19 $ 2,501.25 300000 Payables-Trade Accounts 600000 Sales Revenue 300100 Payables-Income Taxes #N/A $ 2,300.00 $ 201.25 1/19/2021 18 20 $ 1,380.00 780000 Cost of Goods Sold 200910 Inventory-Finished Goods (Direct Post) #N/A $ 1,380.00 1/25/2021 20 21 $ 15,000.00 212000 Prepaid Advertising 100000 Bank Account $ 15,000.00 #N/A 1/26/2021 21 22 $ 27,450.00 100000 Bank Account 600000 Sales Revenue $ 27,450.00 #N/A 1/26/2021 21 23 $ 17,092.00 780000 Cost of Goods Sold 200910 Inventory-Finished Goods (Direct Post) #N/A $ 17,092.00 1/27/2021 23 24 $ 30,890.00 300000 Payables-Trade Accounts 100000 Bank Account #N/A $ 30,890.00 1/31/2021 25 25 $ 3,063.00 300100 Payables-Income Taxes 100000 Bank Account #N/A $ 3,063.00 1/31/2021 26 26 $ 4,500.00 215000 Prepaid Rent 100000 Bank Account $ 4,500.00 #N/A 1/31/2021 27 27 $ 7,195.00 220600 Office Equipment & Computers 216000 Deposits on Purchases 100000 Bank Account #N/A $ 3,000.00 $ 5,935.00 1/31/2021 28 28 $ 340,805.00 110000 Trade Accounts Receivable 600000 Sales Revenue #N/A $340,805.00 Trial Balance as of December 31 Credit Balance Debit Balance $252,518 108,420 $2,500 Account 100000 110100 110400 200600 200900 200910 200920 210000 212000 220110 220210 220310 300200 300700 300800 320000 329000 330100 Title Bank Account Miscellaneous Accounts Receivable Allowance for Bad Debt Inventory-Operating Supplies Inventory-Raw Materials (Direct Post) Inventory-Finished Goods (Direct Post) Inventory-Trading Goods (Direct Post) Prepaid Insurance Prepaid Advertising Land (Direct Post) Property, Plant & Equipment (Direct Post) Accumulated Depreciation-PP&E (Direct Post) Payables-Miscellaneous Payables-Salaries and Wages Accrued Expenses Accrued Tax-Output Common Stock Retained Earnings (Direct Posting) 750 32,000 281,298 66,474 5,000 1,000 425,000 915,000 305,000 47,900 110,000 988 3,063 1,000,000 618,009 Adjusting Journal Entry information as of January 31: Item Description of Event 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 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. 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. 3 4 Production Machinery, Equipment and Fixtures were placed in service on January 1, 2016, 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 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 GBI needs to recognize $4,500 of rent expense that had been prepaid. Date 1/3/2021 Credit Transaction # 1 Journal Entry # 1 General Journal Account # Account Name 300700 Payables-Salaries and Wages 100000 Bank Account To Record Salaries Payable Paid. Debit $ 110,000.00 $ 110,000.00 1/3/2021 2 N $ 55,692.00 $ 37,128.00 200910 Inventory-Finished Goods (Direct Post) 200900 Inventory-Raw Materials (Direct Post) 300000 Payables-Trade Accounts 100000 Bank Account #N/A $ 92,820.00 $ 550.00 1/3/2021 3 3 3 $ 22,000.00 110000 Trade Accounts Receivable 600000 Sales Revenue #N/A $ 22,000.00 1/3/2021 3 4 $ 15,180.00 780000 Cost of Goods Sold 200910 Inventory-Finished Goods (Direct Post) #N/A $ 15,180.00 1/7/2021 4 5 $ 16,850.00 100000 Bank Account 110000 Trade Accounts Receivable #N/A $ 16,850.00 1/10/2021 5 6 $ 988.00 300800 Accrued Expenses 100000 Bank Account $ 988.00 #N/A 1/11/2021 7 7 $ 350.00 200600 Inventory-Operating Supplies 300000 Payables-Trade Accounts #N/A $ 350.00 1/11/2021 8 8 $ 99,418.00 200900 Inventory-Raw Materials (Direct Post) 300000 Payables-Trade Accounts #N/A $ 99,418.00 1/11/2021 9 9 $ 21,560.00 $ 440.00 100000 Bank Account 610000 Sales Discounts 110000 Trade Accounts Receivable #N/A $ 22,000.00 1/12/2021 10 10 $ 92,820.00 300000 Payables-Trade Accounts 100000 Bank Account #N/A $ 92,820.00 1 5 1/13/2021 11 11 $ 3,000.00 216000 Deposits on Purchases 100000 Bank Account #N/A $ 3,000.00 1/17/2021 12 12 $ 17,010.00 300000 Payables-Trade Accounts 100000 Bank Account #N/A $ 17,010.00 1 1/17/2021 13 13 $ 128,130.00 110000 Trade Accounts Receivable 600000 Sales Revenue #N/A $ 128,130.00 1/17/2021 13 14 $ 79,441.00 780000 Cost of Goods Sold 200910 Inventory-Finished Goods (Direct Post) #N/A $ 79,441.00 1/17/2021 14 15 $ 100,720.00 200900 Inventory-Raw Materials (Direct Post) 300000 Payables-Trade Accounts #N/A $ 100,720.00 1/17/2021 15 16 $ 1,610.00 110400 Allowance for Bad Debt 110000 Trade Accounts Receivable #N/A $ 1,610.00 1/18/2021 16 17 $ 89,960.00 100000 Bank Account 110000 Trade Accounts Receivable #N/A $ 89,960.00 1/19/2021 17 18 $ 350.00 300000 Payables-Trade Accounts 100000 Bank Account #N/A $ 350.00 1/19/2021 18 19 $ 2,501.25 300000 Payables-Trade Accounts 600000 Sales Revenue 300100 Payables-Income Taxes #N/A $ 2,300.00 $ 201.25 1/19/2021 18 20 $ 1,380.00 780000 Cost of Goods Sold 200910 Inventory-Finished Goods (Direct Post) #N/A $ 1,380.00 1/25/2021 20 21 $ 15,000.00 212000 Prepaid Advertising 100000 Bank Account $ 15,000.00 #N/A 1/26/2021 21 22 $ 27,450.00 100000 Bank Account 600000 Sales Revenue $ 27,450.00 #N/A 1/26/2021 21 23 $ 17,092.00 780000 Cost of Goods Sold 200910 Inventory-Finished Goods (Direct Post) #N/A $ 17,092.00 1/27/2021 23 24 $ 30,890.00 300000 Payables-Trade Accounts 100000 Bank Account #N/A $ 30,890.00 1/31/2021 25 25 $ 3,063.00 300100 Payables-Income Taxes 100000 Bank Account #N/A $ 3,063.00 1/31/2021 26 26 $ 4,500.00 215000 Prepaid Rent 100000 Bank Account $ 4,500.00 #N/A 1/31/2021 27 27 $ 7,195.00 220600 Office Equipment & Computers 216000 Deposits on Purchases 100000 Bank Account #N/A $ 3,000.00 $ 5,935.00 1/31/2021 28 28 $ 340,805.00 110000 Trade Accounts Receivable 600000 Sales Revenue #N/A $340,805.00 Trial Balance as of December 31 Credit Balance Debit Balance $252,518 108,420 $2,500 Account 100000 110100 110400 200600 200900 200910 200920 210000 212000 220110 220210 220310 300200 300700 300800 320000 329000 330100 Title Bank Account Miscellaneous Accounts Receivable Allowance for Bad Debt Inventory-Operating Supplies Inventory-Raw Materials (Direct Post) Inventory-Finished Goods (Direct Post) Inventory-Trading Goods (Direct Post) Prepaid Insurance Prepaid Advertising Land (Direct Post) Property, Plant & Equipment (Direct Post) Accumulated Depreciation-PP&E (Direct Post) Payables-Miscellaneous Payables-Salaries and Wages Accrued Expenses Accrued Tax-Output Common Stock Retained Earnings (Direct Posting) 750 32,000 281,298 66,474 5,000 1,000 425,000 915,000 305,000 47,900 110,000 988 3,063 1,000,000 618,009 Adjusting Journal Entry information as of January 31: Item Description of Event 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 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. 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. 3 4 Production Machinery, Equipment and Fixtures were placed in service on January 1, 2016, 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 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 GBI needs to recognize $4,500 of rent expense that had been prepaid