How to general journal with the account
is installed. GBI will classify the bar-coding system as Machinery, Equipment and Flxtures" 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 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 a $89,960 funds transfer from Silicon Valley Bikes in Palo Alto for the balance due on their account. 12 January 17 13 ects of er, the ansac- urces indi- in 2 ned tir 14 15 16 January 18 Part Stop Here-End of SAP GBI paid Staples for the office supplies they received January 11 17 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. (Don't forget to charge 18 SAP AG Page 10 Accounts highlighted in yellow denotes that they are not used in this project. G/L Account J100000 G/L Acct Long Text Bank Account Accounts Receivable (Direct Posting Account) Allowance for Bad Debts 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 on Purchases Notes Receivable Fixed Assets Accumulated Depreciation- Fixed Assets Land (Direct Post) Production Machinery, Equip & Fixtures(Dir.Post) Accumulated Depreciation-Machinery (Direct Post) Office Furniture Accumulated Depreciation-Office Furniture 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 Expenses Goods Recelpt/ Invoice Receipt Account Accrued Tax- Output Accrued Tax- Input Unearned Revenues Common Stock Additional Paid-in-Capital Retained Earnings (Direct Posting) Sales Revenue Sales Discount Labor Expense Supplies Expense Rent Expense Insurance Expense Bad Debt Expense Utilities Expense Depreciation Expense Advertising Expense Cost of Goods Sold 10100 V10150 110200 V200600 V200900 200910 200920 200930 210000 ,211000 212000 215000 V216000 220000 220050 220060 220110 220210 V 220310 220400 220500 300100 300200 300300 300400 300500 300600 300700 J300800 310000 J320000 321000 322000 329000 329100 330010 600000 4610000 700000 740000 N740300 740400 741200 741500 V741800 741900 780000 Page 5 sales tax of 8.75% for this order.) 19 January 24 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 Beantown Bikes in Boston, MA placed an order with GBI for $27,450 GBI has been offered the opportunity to advertise in the Bicycle Times online magazine for a red uced 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 $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 Fed-X $360 for shipping the order. the bikes to them. 20 January 25 21 January 26 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. GBI sent a $30,890 check to Night Rider Aluminum Products for an order of bicycle parts GBI received December 30th 22 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. 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. 24 25 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. 27 23 26 is installed. GBI will classify the bar-coding system as Machinery, Equipment and Flxtures" 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 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 a $89,960 funds transfer from Silicon Valley Bikes in Palo Alto for the balance due on their account. 12 January 17 13 ects of er, the ansac- urces indi- in 2 ned tir 14 15 16 January 18 Part Stop Here-End of SAP GBI paid Staples for the office supplies they received January 11 17 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. (Don't forget to charge 18 SAP AG Page 10 Accounts highlighted in yellow denotes that they are not used in this project. G/L Account J100000 G/L Acct Long Text Bank Account Accounts Receivable (Direct Posting Account) Allowance for Bad Debts 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 on Purchases Notes Receivable Fixed Assets Accumulated Depreciation- Fixed Assets Land (Direct Post) Production Machinery, Equip & Fixtures(Dir.Post) Accumulated Depreciation-Machinery (Direct Post) Office Furniture Accumulated Depreciation-Office Furniture 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 Expenses Goods Recelpt/ Invoice Receipt Account Accrued Tax- Output Accrued Tax- Input Unearned Revenues Common Stock Additional Paid-in-Capital Retained Earnings (Direct Posting) Sales Revenue Sales Discount Labor Expense Supplies Expense Rent Expense Insurance Expense Bad Debt Expense Utilities Expense Depreciation Expense Advertising Expense Cost of Goods Sold 10100 V10150 110200 V200600 V200900 200910 200920 200930 210000 ,211000 212000 215000 V216000 220000 220050 220060 220110 220210 V 220310 220400 220500 300100 300200 300300 300400 300500 300600 300700 J300800 310000 J320000 321000 322000 329000 329100 330010 600000 4610000 700000 740000 N740300 740400 741200 741500 V741800 741900 780000 Page 5 sales tax of 8.75% for this order.) 19 January 24 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 Beantown Bikes in Boston, MA placed an order with GBI for $27,450 GBI has been offered the opportunity to advertise in the Bicycle Times online magazine for a red uced 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 $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 Fed-X $360 for shipping the order. the bikes to them. 20 January 25 21 January 26 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. GBI sent a $30,890 check to Night Rider Aluminum Products for an order of bicycle parts GBI received December 30th 22 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. 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. 24 25 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. 27 23 26
