Question
JOURNAL ENTRIES OF; 16 January 18 GBI received a $90,000 funds transfer from Silicon Valley Bikes in Palo Alto for the balance due on their
JOURNAL ENTRIES OF;
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16 | January 18 | GBI received a $90,000 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. |
| 18 | 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.) | |
| 19 | January 24 | Beantown Bikes in Boston, MA placed an order with GBI for $27,000 in bicycles. The cost of the bicycles is $17,000. Beantown Bikes is a new customer. Its buyers saw GBIs 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. 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. |
| 21 | January 26 | GBI received notification from their bank that Beantown Binkes had transferred funds into their account for their prior order, so GBIs warehouse personnel shipped Beantowns order. Beantown will be responsible for paying Fed-X $400 for shipping the order. |
Account Balances as of December 31st
| Debit Balance | Credit Balance | |||||
| 100000 | Bank Account | $300,318 | ||||
| 110100 | Accounts Receivable (Direct Posting Account) | 94,670 | ||||
| 110150 | Allowance for Bad Debts | 2,600 | ||||
| 200600 | Inventory-Operating Supplies | 8,832 | ||||
| 200900 | Inventory-Raw Materials (Direct Post) | 52,000 | ||||
| 200910 | Inventory-Finished Goods (Direct Post) | 281,298 | ||||
| 200920 | Inventory-Trading Goods (Direct Post) | 66,474 | ||||
| 210000 | Prepaid Insurance | 3,000 | ||||
| 212000 | Prepaid Advertising | 2,400 | ||||
| 220110 | Land (Direct Post) | 528,000 | ||||
| 220210 | Production Machinery, Equip & Fixtures (Dir.Post) | 915,000 | ||||
| 220310 | Accumulated Depreciation-Machinery (Direct Post) | 408,000 | ||||
| 300200 | Accounts Payable (Direct Posting Account) | 48,000 | ||||
| 300700 | Payables-Salaries and Wages | 94,313 | ||||
| 300800 | Accrued Expenses | 2,200 | ||||
| 320000 | Accrued Tax Output | 4,000 | ||||
| 329000 | Common Stock | 1,010,000 | ||||
| 329100 | Additional Paid-in-Capital | 52,870 | ||||
| 330010 | Retained Earnings (Direct Posting) | 630,009 | ||||
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