ENTER jOURNAL ENTRIES FOR THESE TRANSACTIONS BELOW :

January 10 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.)

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 employees to track inventory using mobile devices and special software which will link into their new computerized accounting system. The barcode system costs $7,500 (including sales tax) and CSI will charge GBI $1,300 for the installation and tests. GBI paid a deposit of $2,000 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.

January 19 SoCal Bikes in Irvine, CA placed an order for $2,750 in bicycle helmets for a special event in February. The merchandise cost GBI $1,300. SoCal sent a truck to the GBI distribution center in San Diego, CA and picked up the merchandise directly from GBIs warehouse. Terms of payment are net 30. (Dont forget to charge sales tax of 7.75% for this order.)

January 25 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, the advertising is a great opportunity for GBI to get additional recognition. The advertising will start in February. GBI wrote a check for $9,000 for three months of advertising.

January 27 GBI sent a $32,000 check to Night Rider Aluminum Products for an order of bicycle parts GBI received December 30th.

January 31 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.

January 31 GBI paid Februarys rent of $4,000 for the office and warehouse space in San Diego.

January 31 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 the balance owed and gave it to the installer.

January 31 Big Apples truck arrived at GBIs warehouse and picked up the order from January 27th.

G/L Account 100000 110100 Accounts Receivable (Direct Posting Account) 110150 110200 200600 200900 Inventory-Raw Materials (Direct Post) 200910 Inventory-Finished Goods (Direct Post) 200920 Inventory-Trading Goods (Direct Post) 200930 Inventory-Semi-finished Goods (Direct Post) 210000 211000 212000 215000 216000 220000 220110 Land (Direct Post) 220210Production Machinery, Equip & Fixtures (Dir.Post) 220310 Accumulated Depreciation-Machinery (Direct Post) 220400 220500 220600 220700 300100 300200 Accounts Payable (Direct Posting Account) 300300 300400 300500 300600 300700 300800 Accrued Expenses 310000 Goods Receipt Invoice Receipt Account 320000 321000 322000 329000 329100 330010 G/L Acct Long Text Bank Account Allowance for Bad Debts Interest Receivable Inventory-Operating Supplies Prepaid Insurance Prepaid Supplies Prepaid Advertising Prepaid Rent Deposits on Purchases Notes Receivable Office Furniture Accumulated Depreciation-Office Furniture Office Equipment and Computers Accumulated Depreciation - Office Equipment Payables-Income Taxes Payables-Interest Payables-Short-Term Notes Payables-Long-Term Notes Payables-Commissions Payables-Salaries and Wages Accrued Tax Output Accrued Tax- Input Unearned Revenues Common Stock Additional Paid-in-Capital Retained Earnings (Direct Post)