I need to do general entries for the following events and I did as you can tell but the unadjusted balance should be 1,478,835 but I dont know what im missing or doing wrong. If you could help and see where I messed up.
A Account Balances as of December 31st Credit Balance Debit Balance $248,018 108,420 2,500 750 32,000 281,298 66,474 5,000 1,000 4,500 425,000 915,000 305,000 100000 Bank Account 110100 Accounts Receivable (Direct Posting Account) 110150 Allowance for Bad Debtg 110200 Interest Receivable 200600 Inventory-Operating Supplies 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 Prepaid Insurance 211000 Prepaid Supplies 212000 Prepaid Advertising 215000 Prepaid Rent 216000 Deposits 220000 Notes Receivable 220110 Land (Direct Post) 220210 Production Machinery, Equip & Fixtures(Dir.Post) 220310 Accumulated Depreciation Machinery (Direct Post) 220400 Office Furniture 220500 Accumulated Depreciation Office Furniture 220600 Office Equip and Computers 220700 Accumulated Depreciation - Office Equipment 300100 Payables-Income Taxes 300200 Accounts Payable (Direct Posting Account) 300300 Payables-Interest 300400 Payables-Short-Term Notes 300500 Payables-Long-Term Notes 300600 Payables-Commissions 300700 Payables-Salaries and Wages 300800 Accrued Expense 310000 Goods Receipt / Invoice Receipt Account 320000 Accrued Tax - Output 321000 Accrued Tax- Input 322000 Unearned Revenues 329000 Common Stock 329100 Additional Paid-in-Capital 330010 Retained Earnings (Direct Posting) 47,900 110,000 988 3,063 1,000,000 618,009 Events During January Event Date Description of Event 1 January 3 2 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. 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. 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. GBI received payment of $16,850 from Northwest Bikes in Seattle, WA for the balance due on their account. 3 4 January 7 5 January 10 6 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. GBI'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.) 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. GBI ordered $99,418 in raw materials from Space Bike Composites in Houston, TX. Terms of payment to Space Bikes are net 30. 7 January 11 8 9 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 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 $5.995 (including sales tax) and CSI will charge GBI 12 January 17 13 $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". 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. 14 15 16 January 18 GBI paid Staples for the office supplies they received January 11. 17 January 19 18 19 January 24 20 January 25 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 sales tax of 8.75% for this order.) 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. 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 $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 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. 21 January 26 22 January 27 23 24 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. 25 January 31 26 27 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. Big Apple's truck arrived at GBI's warehouse and picked up the order from January 27th 28 General Journal Date Jounal Entr Event# G/L Acct 3-Jan JE-01 11 300700 100000 Description of Transaction Payables-Salaries and wages Bank Account For payroll paid Debit Credit 110,000 110,000 3-Jan JE-02 2 55,692 37,128 92,820 Inventory-Finished Goods Inventory-Raw Material (Direct Post) Accounts Payable To account for FG n RM Freight-in Bank Account For freight costs 550 100000 550 3-Jan JE-03 3 22,000 600000 22,000 780000 15,180 Accounts Receivable Sales Revenue Order from Windy City Bikes Cost Of Goods Sold Inventory-Finished Goods To record cogs Bank Account Accounts Receivable Payment recived from Northwest Bikes 15,180 7-Jan JE-04 4 16,850 16,850 10-Jan JE-05 5 988 100000 Accrued utility expense Bank Account Utility bill paid 988 10-Jan JE-06 61 6 6,000 Advertising Expense Prepaid advertising expense For advertisment 6,000 11-Jan JE-07 7 350 Operating Supplies Expense Accounts Payable To account for office supplies ordered 350 11-Jan JE-08 9 9 100000 21,560 440 Bank Account Discount Allowed Accounts Receivable Payment reaved from Windy City Bikes 22,000 12-Jan JE-09 10 92,820 100000 Accounts Payable Bank Account Payment to Dallas Bikes for order recieved 92,820 13-Jan JE-10 111 5,995 1,200 3,000 4.195 Production Machinery, Equipment & fixtures Installation charge Bank account Accounts Payable For barcode, inst, and deposit Accounts Payable Bank Account For order goods from light bulb 17-Jan JE-11 12 17,010 100000 17,010 17-Jan JE-12 13 128, 130 600000 128,130 7800001 79,441 Accounts Recivable Sales Revenue Bike order from Rocky Mountain Cost of Goods Sold Inventory- Finished Goods (Direct Post) Shipping cost for finished goods Inventory-Finished Goods Accounts pay bable Invoice for space bikes 79,441 17-Jan JE-13 14 100,220 ......... 100,220 17-Jan JE-14 15 1,610 Bad debts Accounts Receivable To record Bunky Bycice cant pay 1,610 18-Jan JE-15 161 100000 89,960 Bank Account Accounts Reciveable Recived payment from SV bikes 89,960 19 Jan JE-16 17 350 100000 Accounts Payable Bank Account Payment to Staples 350 19-Jan JE-17 18 2,507 600000 2.300 207 780000 Accounts Receivable Sales Revenue Tax Payable TO Acct for oder from SoCal Bikes Cost of Goods Sold Inventory-Finished Goods For merch cost Prepaid Advertising Expense Bank Account 1,380 1,380 25-Jan JE-18 15,000 100000 15,000 26-Jan JE-19 100000 27,450 Bank Account Sales Revenue Recived trans from Beantown Bikes 27,450 27-Jan JE-20 23 30,890 300200 100000 Accounts Payable Bank Account Check sert to Night rider Aluminum 30,890 31-Jan JE-21 25 320000 100000 3,063 Accrude Tax output Bank accounts 3,063 31-Jan JE-22 4,500 215000 100000 Prepaid Rent Bank Account 4,500 31-Jan JE-23 4,195 300200 100000 Accounts Payable Bank Account 4,195 31-Jan JE-24 Accounts Recivable Sales Revenue 340,805 600000 340,805 234,680 780000 200910 20020 Cost of goods Sold Inventory- Finished Goods(Direct post) Inventory- Trading Goods (direct Post) 234,680 check figures 1,467,944 1,467,944
