I have attached pictures of the project instructions in excel. Please help. Thank you so much

DETAILED ASSIGNMENT REQUIREMENTS The the Chart of Accounts, below, shows the balances in GBI accounts as of December 31; Strikethrough In the following pages is a list of the descriptions of events occurring during January for which you are to make general journal entries in a manual accounting system; You will use Excel to create a manual accounting system which includes: o general journal, o a ledger for each account used in this project, o an End-of-Period worksheet that displays: unadjusted trial balance, uljustments, aljusted trial balance, income statement and balance sheet columns. You will then create the GAAP-required financial statements. All of these items will be generated in Excel. Don't forget to include the beginning and ending balances in your ledgers. 1. 2. OVERVIEW OF ASSIGNMENT STEPS Create an Excel workbook with indiviciual worksheets for (1) documentation, (2) chart of accounts, (3) general journal , (4) annet ledguts, liability ledgers, (6) equity ledgers,) end- of-period worksheet, (B) income statement, (9) balance sheet, and (10) statement of cash flows Format each worksheet in the workbook to have the appropriate column layout that matches cach required accounting form as listed in step 1, above. Record the daily transactions if appropriate, (some events may not involvc journal entries), as general journal entries into Excel. Also, post these joumal entries into ledgets and then calculate account balances using cell formulas in Excel. Link the ledger balances into your Excel worksheet et as a trial balance. You should create links between your Excel worksheets 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 post them into the ledgers and trial balance. 3. 4. 9 5. 6. Record closing entries in your trial balance as if this were a year-end close. (Do not enter the closing entries in your ledgers.) Carry the adjustments to the Adjusted Trial Balance columns of the End-of-Period worksheet. Create an income statement, balance sheet, and statement of cash flows from the worksheet. 7. DETAILED STEP-BY-STEP INSTRUCTIONS Open an Excel workbook. Save it to the name, "GBI_your_first_last_name_SP 2021. 1. Need help? View the tutorial, "Getting Started on the Excel Project" which is located in the Blackboard content area, "Excel Project Materials." 2. Rename the worksheets in the workbook to the following names (You will need to insert additional worksheets.): a. Documentation b. Chart of Accounts c. General Journal d. Asset Ledgers c. Liability Ledgers f. Equity Ledgers g. EOP Worksheet h. Income Statement i. Balance Sheet j. Cash Flows Format the Chart of Accounts worksheet to have 4 columns. Name the first column Account No," the second column, G/L Long Text Title)," the third, Debit, and the fourth, Credit." Enter the beginning balances into the Debit and Credit columns on the correct account lines. Refer to the example screen shot on the next page. 3. X 39 File Home Insert Page Layout Formulas Data Review View Developer Calibn === - Wrap Text General - 11-AA A Paste BIU E EC Merge & Center $. Clipboard Font Alignment NE A9 fa A B D Global Bike, Inc. Chart of Accounts G/L Long Text Title Bank Account Accounts Receivable (Direct Posting Account) Allowance for Bad Debt Credit Debit 252,518 108,420 2,500 1 2 Account No 3 100000 4 110100 5 110150 6 7 8 9 10 4. Enter the account numbers, account titles, and beginning balances into the Chart of Accounts, as demonstrated above. This may be done by copying and pasting from these instructions, or you may manually type the data into the worksheet. (See page 14.) After you have entered the beginning balances, total all debit balance entries using the Excel SUMO function. Do the same for all credit balance cntrics. Be sure that the sum of all debit balance entries EXACTLY matches the sum of all credit balance entries. 5. 6. Create a named range, "COA," that includes all the data (not the column labels) in the Chart of Accounts. You may do this by highlighting the range from the cell containing "100,000" diagonally to the cell two columns left of the Cost of Goods Sold account title. This cell will have the value of "0." (You may use Excel's Help function for more information.) File BST 2021 GBI Manualclution Home Insert Page Layout Page Layout Formulas Data Review View Developer Help Acro Tell fx * le ? A Deline Name 1. Use in Formula Insert AutoSum Recently Financial Logical Text Date & Lookup & Math & More Name Function Used - Time - Reference - Trig - Functions Manager Create from Selection Function Library Defined Names COA * 100000 B D E F 28 741500 Utilities (electricity & phone) 0 0 29 741800 Depreciation Expense O 0 30 741900 Advertising Expenso 0 21 780000 Cost of Goods Sold followed the instructions accurately, the range to highlight will be from cell A3 to cell D33. After you have highlighted the range, click on the Formulas tab, and select Define Name in the Defined Names group. 11 7. Format the General Journal worksheet to look like: 01-03 File Formulas Data Review View Developer Acrobat Team 8. --= Home Insert Page Layout Cut Arial a Copy 10 AM == General Wrap Text EEE Merge & Center. $. % Paste Format Painter BIT. A . Condition Formatting Clipboard Alignment Number Font fo D29 . B F G H D E Global Bike, Inc General Journal 1 1 Date Account No. D/C Account Title Debit Credit Joumal Transaction Entry No No Post 2 3 4 5 6 7 8 8 9 10 11 12 13 14 15 9. a. of the information that will entered into each column of the general journal. (e.g. text, date, comma delimited, etc.) Develop an in-cell formula that will: insert the account title when the account number is entered, and b. will indent the account title if the line is specified to be a credit entry. Hint: use an IFd function, a VLOOKUP() function and the concatenate operator (). Copy this formula into the cells in column D (account titles). Record the daily transactions if appropriate, (some events do not involve journal entries), as general journal entries into Excel Format one worksheet for each category, Asset, Liability, and Equity Ledgers. The format for each ledger on each worksheet should resemble the following illustration: 10. 11. Global Bike, Inc. Asset Ledgers 100000 Date Bank Account (Cash) Item Entry No. Entry Value Balance Debit Credit Debit Credit 12 12. EXTRA CREDIT STEP:_(This are absolutely discretionary: NOT required.) Creating a macro is NOT A REQUIREMENT to earn an "A" on this project. You may use an alternative method to link the journal entries to the ledgers. If you choose to attempt a macro, it will add up to 10% to your grade, depending on if it works. . Do you need help? If you do, go to Blackboard. Open the Excel Project Materials content area. View the tutorial, Create a Posting Macro." Create a macro to post your journal entries into ledger accounts. 13. Format the EOP Worksheet to look like: Creo Pare - Micro 14. CA ES & Co C C Sy The Criteria MN GLOBAL BIKE, INC END OF PERIOD WORKSHEET Asus Added Twice Statement ACOTEM Used Trial lance C Balance sheet and Owner' quity Dr Cr beginning balances of all general ledger accounts into the workbook. For maximum credit, link the cells in the Chart of Accounts worksheet to the appropriate cells in the ledgers. 15. Link the ledger account balances into your Excel worksheet to create the trial balance. You should create links between your spreadsheets to expedite this process and minimize the risk of an error in data entry. 16. The next step is to record the adjusting entries into the general journal. Do NOT post the adjusting entries into the Ledger Accounts. Rather, enter the adjusting entries directly into the End-of-Period worksheet in the Adjustment columns. 17. Sum across the Unadjusted Trial Balance and the Adjustments columns to calculate the Adjusted Trial Balance column totals. 18. Extend the Adjusted Trial Balance into segregated into Income and Balance Sheet items, using the appropriate net income figure to make the columns balance. 19. Finally, compose, in GAAP format, a multi-step income statement, a balance sheet, and a statement of cash flows. Remember: if you have problems with the completion of any of these steps from an accounting perspective, you may refer to your Intermediate Accounting textbook (most usually chapter 2) for specific examples of journal entries and creating an adjusted trial balance. 13 CHART OF ACCOUNTS FOR GLOBAL BIKE, INC. The chart of accounts is a means of organizing general ledger accounts for grouping or sorting and to generate financial statements. Generally, a unique numeric code (although alphanumeric can also be used) is given to an account based on its type. A block of code may be set aside for specific types of accounts. For instance, in the case of GBI, account numbers 100000 through 109999 are reserved for "cash or liquid asset accounts. The entire set of codes and blocks of code is called the chart of accounts. Global Bike's chart of accounts follows: CHART OF ACCOUNTS AND ACCOUNT BALANCES AS OF DECEMBER 31ST 2020 Debit Balance Credit Balance $395,000 160,000 3,500 100000 110100 110150 200600 200900 200910 200920 210000 212000 1500 32,000 280,500 67,950 10,000 5,000 425,000 1,050,000 216000 220110 220210 220310 300200 300700 300800 320000 329000 330010 600000 610000 700000 740000 740300 740400 741200 741500 741800 741900 Bank Account Accounts Receivable (Direct Posting Account) 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 Prepaid Rer Deposits Land (Direct Post) Production Machinery, Equip & Fixtures Accumulated Depreciation-Machinery Accounts Payable Payables-Salaries and Wages Accrued Expense Accrued Tax - Output Common Stock Retained Earnings Sales Revenue Sales Discount Labor Supplies Expense Rent Expense Insurance Expense Bad Debt Expense Utilities (electricity & phone) Depreciation Expense Advertising Expense 305,000 150,000 125,000 1050 4,000 1,000,000 838,400 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 14 780000 Cost of Goods Sold 0 EVENTS DURING JANUARY 2021 Event Date Description of Event 1 January 3 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 $125,000. (Ignore payroll taxes for this assignment.) Accounting wrote and distributed the paychecks. 2 January 3 GBI received $61,600 in safety product inventory and $50,400 in raw materials from Dallas Bike Basics. This inventory was ordered on December 28. The payment terms for the invoice total of $112,000 are net 10 days. GBI paid the CWX shipping company $500 with a manual check for the shipment of the goods. The bill of lading showed that the safety product inventory arrived in 20 boxes with a total weight of 180 lbs and the raw materials came on a single pallet and weighed 320 lbs. 3 January 4 Windy City Bikes in Chicago, IL ordered $25,000 of bicycle accessories from GBI. The cost of the accessories (to GBI) is $15,000. 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. January 7 GBI received payment of $45,000 from Northwest Bikes in Seattle, WA 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 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 $950 via the company's automatic electronic bill pay program January 10 GBI's advertisement in Bicycling magazine 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.) January 11 The office manager in San Diego ordered $500 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 4 6 7 8 January 11 9 January 12 10 January 12 11 January 13 supplies used during the month. GBI ordered $99,400 in raw materials from Space Bike Composites in Houston, TX. 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 the discount for paying within 10 days. GBI paid $112,000 via bank transfer for the inventory order that they received from Dallas Bike Basics January 3. 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 $25,900 (including sales tax) and CSI will charge GBI $4,100 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 $17,000 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 $128,500 worth of bicycles to be delivered immediately. Rocky Mountain will pay the shipping. The bikes cost GBI $71,400. 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 $800 were included in the $100,200 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 $5,000 that Bunky's owed them. 12 January 17 13 January 17 14 January 17 15 January 18 16 January 18 GBI received a $89,000 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. 16 18 January 19 19 January 24 20 January 25 21 January 26 22 SoCal Bikes in Irvine, CA placed an order for $5,300 in bicycle helmets for a special event in February. The merchandise cost GBI $2,400. 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 sales tax of 8.75% for this order.) Beantown Bikes in Boston, MA placed an order with GBI for $40,000 in bicycles. The cost of the bicycles is $19,500. 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. 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 $15,000 for three months of advertising. GBI received notification from their bank that $37,450 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 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 $31,000 check to Night Rider Aluminum Products for an order of bicycle parts GBI received 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 $235,00 in bicycles and $120,400 in bicycle accessories and safety gear at special discount prices. The cost of the bicycles in this order is $164,500 and the cost of the accessories is $64,100. 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 $4,000 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 January 27 23 January 27 24 January 27 25 January 31 26 January 31 17 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 the balance due and gave the check to the installer. Big Apple's truck arrived at GBI's warehouse and picked up the order from January 27th. 28 January 31 ADJUSTMENT INFORMATION AS OF JANUARY 31, NOT ALREADY GIVEN IN THE ORIGINAL TRANSACTION(S): 1. Based on prior experience, GBI estimates that approximately 12 % 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 $40,900. 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 $650. 4. Production Machinery, Equipment and Fixtures were placed in service on January 1, 2008, 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 on a monthly basis (1.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 $1,450. 6. Liability insurance for the six-month period ending on February 28 in the amount of $30,000 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.) DETAILED ASSIGNMENT REQUIREMENTS The the Chart of Accounts, below, shows the balances in GBI accounts as of December 31; Strikethrough In the following pages is a list of the descriptions of events occurring during January for which you are to make general journal entries in a manual accounting system; You will use Excel to create a manual accounting system which includes: o general journal, o a ledger for each account used in this project, o an End-of-Period worksheet that displays: unadjusted trial balance, uljustments, aljusted trial balance, income statement and balance sheet columns. You will then create the GAAP-required financial statements. All of these items will be generated in Excel. Don't forget to include the beginning and ending balances in your ledgers. 1. 2. OVERVIEW OF ASSIGNMENT STEPS Create an Excel workbook with indiviciual worksheets for (1) documentation, (2) chart of accounts, (3) general journal , (4) annet ledguts, liability ledgers, (6) equity ledgers,) end- of-period worksheet, (B) income statement, (9) balance sheet, and (10) statement of cash flows Format each worksheet in the workbook to have the appropriate column layout that matches cach required accounting form as listed in step 1, above. Record the daily transactions if appropriate, (some events may not involvc journal entries), as general journal entries into Excel. Also, post these joumal entries into ledgets and then calculate account balances using cell formulas in Excel. Link the ledger balances into your Excel worksheet et as a trial balance. You should create links between your Excel worksheets 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 post them into the ledgers and trial balance. 3. 4. 9 5. 6. Record closing entries in your trial balance as if this were a year-end close. (Do not enter the closing entries in your ledgers.) Carry the adjustments to the Adjusted Trial Balance columns of the End-of-Period worksheet. Create an income statement, balance sheet, and statement of cash flows from the worksheet. 7. DETAILED STEP-BY-STEP INSTRUCTIONS Open an Excel workbook. Save it to the name, "GBI_your_first_last_name_SP 2021. 1. Need help? View the tutorial, "Getting Started on the Excel Project" which is located in the Blackboard content area, "Excel Project Materials." 2. Rename the worksheets in the workbook to the following names (You will need to insert additional worksheets.): a. Documentation b. Chart of Accounts c. General Journal d. Asset Ledgers c. Liability Ledgers f. Equity Ledgers g. EOP Worksheet h. Income Statement i. Balance Sheet j. Cash Flows Format the Chart of Accounts worksheet to have 4 columns. Name the first column Account No," the second column, G/L Long Text Title)," the third, Debit, and the fourth, Credit." Enter the beginning balances into the Debit and Credit columns on the correct account lines. Refer to the example screen shot on the next page. 3. X 39 File Home Insert Page Layout Formulas Data Review View Developer Calibn === - Wrap Text General - 11-AA A Paste BIU E EC Merge & Center $. Clipboard Font Alignment NE A9 fa A B D Global Bike, Inc. Chart of Accounts G/L Long Text Title Bank Account Accounts Receivable (Direct Posting Account) Allowance for Bad Debt Credit Debit 252,518 108,420 2,500 1 2 Account No 3 100000 4 110100 5 110150 6 7 8 9 10 4. Enter the account numbers, account titles, and beginning balances into the Chart of Accounts, as demonstrated above. This may be done by copying and pasting from these instructions, or you may manually type the data into the worksheet. (See page 14.) After you have entered the beginning balances, total all debit balance entries using the Excel SUMO function. Do the same for all credit balance cntrics. Be sure that the sum of all debit balance entries EXACTLY matches the sum of all credit balance entries. 5. 6. Create a named range, "COA," that includes all the data (not the column labels) in the Chart of Accounts. You may do this by highlighting the range from the cell containing "100,000" diagonally to the cell two columns left of the Cost of Goods Sold account title. This cell will have the value of "0." (You may use Excel's Help function for more information.) File BST 2021 GBI Manualclution Home Insert Page Layout Page Layout Formulas Data Review View Developer Help Acro Tell fx * le ? A Deline Name 1. Use in Formula Insert AutoSum Recently Financial Logical Text Date & Lookup & Math & More Name Function Used - Time - Reference - Trig - Functions Manager Create from Selection Function Library Defined Names COA * 100000 B D E F 28 741500 Utilities (electricity & phone) 0 0 29 741800 Depreciation Expense O 0 30 741900 Advertising Expenso 0 21 780000 Cost of Goods Sold followed the instructions accurately, the range to highlight will be from cell A3 to cell D33. After you have highlighted the range, click on the Formulas tab, and select Define Name in the Defined Names group. 11 7. Format the General Journal worksheet to look like: 01-03 File Formulas Data Review View Developer Acrobat Team 8. --= Home Insert Page Layout Cut Arial a Copy 10 AM == General Wrap Text EEE Merge & Center. $. % Paste Format Painter BIT. A . Condition Formatting Clipboard Alignment Number Font fo D29 . B F G H D E Global Bike, Inc General Journal 1 1 Date Account No. D/C Account Title Debit Credit Joumal Transaction Entry No No Post 2 3 4 5 6 7 8 8 9 10 11 12 13 14 15 9. a. of the information that will entered into each column of the general journal. (e.g. text, date, comma delimited, etc.) Develop an in-cell formula that will: insert the account title when the account number is entered, and b. will indent the account title if the line is specified to be a credit entry. Hint: use an IFd function, a VLOOKUP() function and the concatenate operator (). Copy this formula into the cells in column D (account titles). Record the daily transactions if appropriate, (some events do not involve journal entries), as general journal entries into Excel Format one worksheet for each category, Asset, Liability, and Equity Ledgers. The format for each ledger on each worksheet should resemble the following illustration: 10. 11. Global Bike, Inc. Asset Ledgers 100000 Date Bank Account (Cash) Item Entry No. Entry Value Balance Debit Credit Debit Credit 12 12. EXTRA CREDIT STEP:_(This are absolutely discretionary: NOT required.) Creating a macro is NOT A REQUIREMENT to earn an "A" on this project. You may use an alternative method to link the journal entries to the ledgers. If you choose to attempt a macro, it will add up to 10% to your grade, depending on if it works. . Do you need help? If you do, go to Blackboard. Open the Excel Project Materials content area. View the tutorial, Create a Posting Macro." Create a macro to post your journal entries into ledger accounts. 13. Format the EOP Worksheet to look like: Creo Pare - Micro 14. CA ES & Co C C Sy The Criteria MN GLOBAL BIKE, INC END OF PERIOD WORKSHEET Asus Added Twice Statement ACOTEM Used Trial lance C Balance sheet and Owner' quity Dr Cr beginning balances of all general ledger accounts into the workbook. For maximum credit, link the cells in the Chart of Accounts worksheet to the appropriate cells in the ledgers. 15. Link the ledger account balances into your Excel worksheet to create the trial balance. You should create links between your spreadsheets to expedite this process and minimize the risk of an error in data entry. 16. The next step is to record the adjusting entries into the general journal. Do NOT post the adjusting entries into the Ledger Accounts. Rather, enter the adjusting entries directly into the End-of-Period worksheet in the Adjustment columns. 17. Sum across the Unadjusted Trial Balance and the Adjustments columns to calculate the Adjusted Trial Balance column totals. 18. Extend the Adjusted Trial Balance into segregated into Income and Balance Sheet items, using the appropriate net income figure to make the columns balance. 19. Finally, compose, in GAAP format, a multi-step income statement, a balance sheet, and a statement of cash flows. Remember: if you have problems with the completion of any of these steps from an accounting perspective, you may refer to your Intermediate Accounting textbook (most usually chapter 2) for specific examples of journal entries and creating an adjusted trial balance. 13 CHART OF ACCOUNTS FOR GLOBAL BIKE, INC. The chart of accounts is a means of organizing general ledger accounts for grouping or sorting and to generate financial statements. Generally, a unique numeric code (although alphanumeric can also be used) is given to an account based on its type. A block of code may be set aside for specific types of accounts. For instance, in the case of GBI, account numbers 100000 through 109999 are reserved for "cash or liquid asset accounts. The entire set of codes and blocks of code is called the chart of accounts. Global Bike's chart of accounts follows: CHART OF ACCOUNTS AND ACCOUNT BALANCES AS OF DECEMBER 31ST 2020 Debit Balance Credit Balance $395,000 160,000 3,500 100000 110100 110150 200600 200900 200910 200920 210000 212000 1500 32,000 280,500 67,950 10,000 5,000 425,000 1,050,000 216000 220110 220210 220310 300200 300700 300800 320000 329000 330010 600000 610000 700000 740000 740300 740400 741200 741500 741800 741900 Bank Account Accounts Receivable (Direct Posting Account) 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 Prepaid Rer Deposits Land (Direct Post) Production Machinery, Equip & Fixtures Accumulated Depreciation-Machinery Accounts Payable Payables-Salaries and Wages Accrued Expense Accrued Tax - Output Common Stock Retained Earnings Sales Revenue Sales Discount Labor Supplies Expense Rent Expense Insurance Expense Bad Debt Expense Utilities (electricity & phone) Depreciation Expense Advertising Expense 305,000 150,000 125,000 1050 4,000 1,000,000 838,400 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 14 780000 Cost of Goods Sold 0 EVENTS DURING JANUARY 2021 Event Date Description of Event 1 January 3 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 $125,000. (Ignore payroll taxes for this assignment.) Accounting wrote and distributed the paychecks. 2 January 3 GBI received $61,600 in safety product inventory and $50,400 in raw materials from Dallas Bike Basics. This inventory was ordered on December 28. The payment terms for the invoice total of $112,000 are net 10 days. GBI paid the CWX shipping company $500 with a manual check for the shipment of the goods. The bill of lading showed that the safety product inventory arrived in 20 boxes with a total weight of 180 lbs and the raw materials came on a single pallet and weighed 320 lbs. 3 January 4 Windy City Bikes in Chicago, IL ordered $25,000 of bicycle accessories from GBI. The cost of the accessories (to GBI) is $15,000. 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. January 7 GBI received payment of $45,000 from Northwest Bikes in Seattle, WA 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 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 $950 via the company's automatic electronic bill pay program January 10 GBI's advertisement in Bicycling magazine 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.) January 11 The office manager in San Diego ordered $500 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 4 6 7 8 January 11 9 January 12 10 January 12 11 January 13 supplies used during the month. GBI ordered $99,400 in raw materials from Space Bike Composites in Houston, TX. 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 the discount for paying within 10 days. GBI paid $112,000 via bank transfer for the inventory order that they received from Dallas Bike Basics January 3. 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 $25,900 (including sales tax) and CSI will charge GBI $4,100 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 $17,000 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 $128,500 worth of bicycles to be delivered immediately. Rocky Mountain will pay the shipping. The bikes cost GBI $71,400. 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 $800 were included in the $100,200 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 $5,000 that Bunky's owed them. 12 January 17 13 January 17 14 January 17 15 January 18 16 January 18 GBI received a $89,000 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. 16 18 January 19 19 January 24 20 January 25 21 January 26 22 SoCal Bikes in Irvine, CA placed an order for $5,300 in bicycle helmets for a special event in February. The merchandise cost GBI $2,400. 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 sales tax of 8.75% for this order.) Beantown Bikes in Boston, MA placed an order with GBI for $40,000 in bicycles. The cost of the bicycles is $19,500. 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. 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 $15,000 for three months of advertising. GBI received notification from their bank that $37,450 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 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 $31,000 check to Night Rider Aluminum Products for an order of bicycle parts GBI received 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 $235,00 in bicycles and $120,400 in bicycle accessories and safety gear at special discount prices. The cost of the bicycles in this order is $164,500 and the cost of the accessories is $64,100. 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 $4,000 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 January 27 23 January 27 24 January 27 25 January 31 26 January 31 17 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 the balance due and gave the check to the installer. Big Apple's truck arrived at GBI's warehouse and picked up the order from January 27th. 28 January 31 ADJUSTMENT INFORMATION AS OF JANUARY 31, NOT ALREADY GIVEN IN THE ORIGINAL TRANSACTION(S): 1. Based on prior experience, GBI estimates that approximately 12 % 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 $40,900. 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 $650. 4. Production Machinery, Equipment and Fixtures were placed in service on January 1, 2008, 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 on a monthly basis (1.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 $1,450. 6. Liability insurance for the six-month period ending on February 28 in the amount of $30,000 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.)