GBI General Ledger Chart of Accounts Account # 100000 101000 110000 110100 110200 110400 200000 200100 200200 200300 200400 200500 200600 200900 200910 200920 210000 211000 212000 215000 216000 220000 220050 220060 Account Title Bank Account Alternate Bank Account Trade Accounts Receivable Miscellaneous Accounts Receivable (Direct Post) Interest Receivable Allowance for Bad Debt Inventory-Raw Materials Inventory-Finished Goods Inventory-Trading Goods Inventory-Semi-finished Goods Inventory-Production Supplies Inventory-Suspense (Heaven) Inventory-Operating Supplies Inventory-Raw Materials (Direct Post) Inventory-Finished Goods (Direct Post) Inventory-Trading Goods (Direct Post) Prepaid Insurance Prepaid Supplies Prepaid Advertising Prepaid Rent Deposits on Purchases Notes Receivable Fixed Asse^ 4. of 12 Accumulated Depreciation-Assets 220100 220110 220200 220210 220300 220310 220400 220500 220600 220700 220800 220900 221100 221200 300000 300100 300200 300300 300400 300500 300600 Land Land (Direct Post) Property, Plant & Equipment Property, Plant & Equipment (Direct Post) Accumulated Depreciation Property, Plant & Equip. Accumulated Depreciation-PP&E (Direct Post) Office Furniture Accumulated Depreciation Office Furniture Office Equipment & Computers Accumulated Depreciation Office Equipment & Comp. Vehicles Accumulated Depreciation-Vehicles Intangible Assets Accumulated Amortization-Intangible Assets Payables-Trade Accounts Payables-Income Taxes Payables-Miscellaneous (Direct Post) Payables-Interest Notes Payable-Short-Term Notes Payable-Long-Term Payables-Commissions 300700 300800 310000 320000 321000 322000 329000 329100 330000 330100 600000 610000 620000 630000 640000 650000 650100 700000 720000 720100 720200 720300 740000 740100 740200 740300 740400 Payables-Salaries and Wages Accrued Expenses Goods Receipt / Invoice Receipt Account Accrued Tax-Output Accrued Tax-Input Unearned Revenues Common Stock Additional Paid-in-Capital Retained Earnings Retained Earnings (Direct Posting) Sales Revenue Sales Discounts Miscellaneous Revenue Revenue Deductions Gain or Loss on Sale of Assets Customer Service Revenue Customer Service Revenue Settlement Labor Expense Raw Material Consumption Expense Finished Product Consumption Expense Trading Good Consumption Expense Semi-Finished Consumption Expense Supplies Expense Telecommunications Expense Legal & Professional Expense Rent Expense Insurance Expense 740500 740600 740700 740800 740900 741000 741100 741200 741300 741500 741600 741700 741800 741900 760000 760100 770000 780000 Payroll Expense-Office Payroll Expense-Administrative Sales Expense Property Tax Expense Income Tax Expense Miscellaneous Expense Warranty Expense Bad Debt Expense Information Technology Expense Utilities Expense Manufacturing Output Settlement Manufacturing Output Settlement Variance Depreciation Expense Advertising Expense Purchase Price Variance Production Variance Research and Development Expense Cost of Goods Sold Title 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 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 Event 1 Date January 3 Description of Event 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. 2 January 3 GBI received $55,692 in safety product inventory and $37,128 in raw materials from Dallas Bike Basics. 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. 3 3 January 3 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. 4 January 7 GBI received payment of $16,850 from Little 500 Bicycles in Bloomington, IN for the balance due on their account. 5 January 10 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 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 of $988 via the company's automatic electronic bill pay program. 6 January 10 GBl's advertisement in the English language edition of 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). 7 January 11 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 amount of supplies used during the month. 00 January 11 GBI ordered $99,418 in raw materials from Space Bike Composites in Houston, TX. Terms of payment to Space Bikes are net 30. 9 January 11 GBI received payment from Windy City Bikes for their order from January 3. Windy City paid the invoice amount less the discount for paying within 10 days. 10 January 12 GBI paid $92,820 via bank transfer for the inventory order that they received from Dallas Bike Basics January 3. 11 January 13 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". 12 January 17 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. 13 January 17 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 promotion the LI... Decause noclu Mountain is a good customer, GBI is giving nem sve a110 of 12 15 Disorder. 14 January 17 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. 15 January 17 GBI received notice that Larry's Bicycle Emporium had declared section 13 bankruptcy which meant GBI would not be able to collect the $1,610 that Larry's owed them. 16 January 18 GBI received a $89,960 funds transfer from Silicon Valley Bikes in Palo Alto for the balance due on their account. 17 January 19 GBI paid Staples for the office supplies they received January 11. 18 January 19 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. Terms of payment are net 30. (Do not forget to charge sales tax of 8.75% for this order.) 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 either wait until their credit can be approved or pay for the order before GBI will ship the bikes to them. 20 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. Considering 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 $15,000 for three months of advertising. 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 18th of this year. 23 January 27 GBI sent a $30,890 check to Night Rider Aluminum Products for an order of bicycle Parts GBI received December 30th. 24 January 27 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. 25 January 31 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. 26 January 31 GBI paid February's rent of $4,500 for the office and warehouse space in San Diego. 27 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 $4,195 and gave it to the installer. 28 January 31 Big Apple's truck arrived at GBI's warehouse and picked up the order from January 27th