May someone please help me solve ONLY the 7 ADJUSTING ENTRIES I have also provided the joural entries If they are wrong please correct me Account Balances as of December 31 st Debit Balance Credit Balance 100000 Bank Account 275205 110100 Accounts Receivable (Direct Posting Account) 92,670 110150 Allowance for Bad Debts 2,500 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 5,000 212000 Prepaid Advertising 2200 215000 Prepaid Rent 2500 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) 49100 300700 Payables Salaries and Wages 92,000 300800 Accrued Expenses 1,200 320000 Accrued Tax Output 3,000 329000 Common Stock 1,000,000 329100 Additional Paid in Capital 55,370 330010 Retained Earnings (Direct Posting) 618,009 Events During January 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 (Ignore payroll taxes for this assignment ) Accounting wrote and distributed the paychecks 2 GBI received $70,000 in safety product inventory and $30,000 in raw materials from Dallas Bike Basics This inventory was ordered on December 28 The payment terms for the invoice total of $100,000 are net 10 days GBI paid the CWX shipping company $1000 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 50 lbs and the raw materials came on a pallet and weighed 60 lbs 3 Windy City Bikes in Chicago, IL ordered $22,500 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 Citys UPS shipping number The terms of payment for Windy Citys order are 3 10 net 30 days 4 January 7 GBI received payment of $22,000 from Northwest Bikes in Seattle, WA for the balance due on their account 5 January 10 GBIs 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 st ) 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 via the companys automatic electronic bill pay program 6 GBIs advertisement in the English language edition of Italian Cycling Journal was published today This ad was prepaid at the end of August for six months of advertising, September through February, (Four months of advertising have already been used ) 7 January 11 GBI received their new product catalogs ordered from a local print shop The print shop billed GBI $6,000 for 5,000 catalogs with payment terms of net 10 GBI considers catalogs as advertising and expenses the catalogs at the end of the month based on how many catalogs are sent out during the month 8 GBI ordered $75000 in raw materials from Space Bike Composites in Houston, TX Terms of payment to Space Bikes are net 30 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 for the inventory order (via bank transfer) that they received from Dallas Bike Basics back on January 3 11 January 13 The owners of GBI were talking to the owner of the warehouses that they lease They are good friends The conversation centered around wise investment of the excess cash that GBI presently has The owner of the warehouses stated that he wishes to diversify his investments, especially with the flat real estate market He suggested that GBI purchase the warehouses He said that he would give GBI a good deal GBI decided to buy only one of the warehouses and continue to lease the other one The price is to be $360,000 with a down payment of 20 The original owner will carry a mortgage for the remainder with an interest rate of 7 5 Title is to transfer on March 15 Today GBI sent earnest money of $10,000 to the owner of the warehouse 12 GBI applied for credit with a new supplier, Cycle Partner U S A A credit application was faxed to CPs headquarters in San Antonio, TX GBI is anticipating an order with HP for $12,000 in resale merchandise 13 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 $15,890 due net 30 14 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 $128,000 worth of bicycles to be delivered immediately Rocky Mountain will pay the shipping The bikes cost GBI $78000 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 15 GBI received raw materials inventory ordered from Space Bike Composites January 11 Shipping charges of $600 were included in the invoice from Space Bike 16 GBI received notice that Bunkys Bicycle Emporium had declared section 13 bankruptcy which meant GBI would not be able to collect the $3,350 that Bunkys owed them 17 January 18 GBI received a $90,000 funds transfer from Silicon Valley Bikes in Palo Alto for the balance due on their account 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 8 25 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 without credit, 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 22 January 27 The county approved GBIs building plans for their new warehouse Estimated building costs are $1,100,000 which will be funded via a mortgage from Bank of America GBI plans to break ground on the new building April 18 th of this year 23 GBI sent a $28,000 check to Night Rider Aluminum Products for an order of bicycle parts GBI received December 30th 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 $230,000 in bicycles and $108,500 in bicycle accessories and safety gear at special discount prices The cost of the bicycles in this order is $170000 and the cost of the accessories is $65,000 Big Apple will have a contract trucking company pick up the order when it is ready The order is sent to GBIs 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 states electronic filing and payment system GBI filed its return and paid its sales tax for the quarter ending December 31 26 GBI paid Februarys rent of $4,000 for the office and warehouse space in San Diego 27 Big Apples truck arrived at GBIs warehouse and picked up the order from January 27 th Adjustment information as of January 31, not already given in the original transaction(s) 1)Based on prior experience, GBI estimates that approximately 1 2 of the net sales (gross sales minus returns minus discounts) 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 finished goods inventory was taken at the end of January It was determined that the value of the trading goods merchandise on hand was $49,000 3)Production Machinery, Equipment and Fixtures were placed in service on January 1, 2013, with no salvage value GBI depreciates fixed assets on a straight line basis and those assets acquired in the first half of the months 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 (i e number of days in the month is not of consequence) 4)GBI received a $2,251 bill from PG E for utilities consumed during January and the January AT T bill in the amount of $412 5)Liability insurance for the six month period ending on February 28 was paid last September on the first of the month Liability insurance is assumed to be utilized uniformly over the six month policy period 6)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 ) 7)500 product catalogs were sent out in the month of January Date Accounts Title Dr Cr 3 Jan 1 Payables Salaries and Wages $92,000 Cash $92,000 3 Jan 2 Inventory Raw Materials (Direct Post) 30,000 Inventory Trading Goods (Direct Post) 70000 Accounts payable 100,000 3 Jan 3 Accounts Receivable 22500 Sales 22500 Cost of good sold 15000 Inventory Finished Goods (Direct Post) 15000 7 Jan 4 Cash 22000 Accounts Receivable 22000 10 Jan 5 Accrued Expenses 1200 Cash 1200 (assuming all the expenses is utility) 10 Jan 6 Advertising expenses 1467 Prepaid Advertising (2200 6 4) 1467 11 Jan 7 Advertising expenses 6000 Accured expenses 6000 8 No entry required 9 Cash 21825 Sales discount (22500 3 ) 675 Accounts Receivable 22500 12 Jan 10 Accounts Payable 100000 Cash 100000 13 Jan 11 No entry required 12 No entry required 17 Jan 13 Accounts Payable 15890 Cash 15890 14 Accounts Receivable 128000 Sales 128000 Cost of good sold 78000 Inventory Trading Goods (Direct Post) 78000 15 Inventory Raw Materials (Direct Post) 75600 Accounts payable 75600 16 Allowance for Bad Debts 3350 Accounts Receivable 3350 18 Jan 17 Cash 90000 Accounts Receivable 90000 18 Accounts Receivable (2750 108 25 ) 2977 Sales 2750 Sales Tax payable 227 24 Jan 19 No entry required 25 Jan 20 Prepaid Advertising 9000 Cash 9000 26 Jan 21 Accounts Receivable 27400 Sales 27400 Cash 400 Cost of good sold 17000 Inventory Trading Goods (Direct Post) 17000 27 Jan 22 No entry required 23 Accounts Paybale 28000 Cash 28000 24 No entry required 31 Jan 25 Accrued Tax Output 3000 Cash 3000 26 Rent expenses 4000 Cash 4000 27 Accounts Receivable 338500 Sales 338500 Cost of good sold 235000 Inventory Finished Goods (Direct Post) 170000 Inventory Trading Goods (Direct Post) 65000

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May someone please help me solve ONLY the 7 ADJUSTING ENTRIES. I have also provided the joural entries. If they are wrong please correct me.

Account Balances as of December 31^st


		Debit Balance	Credit Balance
100000	Bank Account	275205
110100	Accounts Receivable (Direct Posting Account)	92,670
110150	Allowance for Bad Debts		2,500
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	5,000
212000	Prepaid Advertising	2200
215000	Prepaid Rent	2500
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)		49100
300700	Payables-Salaries and Wages		92,000
300800	Accrued Expenses		1,200
320000	Accrued Tax Output		3,000
329000	Common Stock		1,000,000
329100	Additional Paid-in-Capital		55,370
330010	Retained Earnings (Direct Posting)		618,009

Events During January

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. (Ignore payroll taxes for this assignment.) Accounting wrote and distributed the paychecks.
2		GBI received $70,000 in safety product inventory and $30,000 in raw materials from Dallas Bike Basics. This inventory was ordered on December 28. The payment terms for the invoice total of $100,000 are net 10 days. GBI paid the CWX shipping company $1000 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 50 lbs. and the raw materials came on a pallet and weighed 60 lbs.
3		Windy City Bikes in Chicago, IL ordered $22,500 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 Citys UPS shipping number. The terms of payment for Windy Citys order are 3/10 net 30 days.
4	January 7	GBI received payment of $22,000 from Northwest Bikes in Seattle, WA for the balance due on their account.
5	January 10	GBIs 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^st.) 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 via the companys automatic electronic bill pay program.
6		GBIs advertisement in the English language edition of Italian Cycling Journal was published today. This ad was prepaid at the end of August for six months of advertising, September through February, (Four months of advertising have already been used.)
7	January 11	GBI received their new product catalogs ordered from a local print shop. The print shop billed GBI $6,000 for 5,000 catalogs with payment terms of net 10. GBI considers catalogs as advertising and expenses the catalogs at the end of the month based on how many catalogs are sent out during the month.
8		GBI ordered $75000 in raw materials from Space Bike Composites in Houston, TX. Terms of payment to Space Bikes are net 30.
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 for the inventory order (via bank transfer) that they received from Dallas Bike Basics back on January 3.
11	January 13	The owners of GBI were talking to the owner of the warehouses that they lease. They are good friends. The conversation centered around wise investment of the excess cash that GBI presently has. The owner of the warehouses stated that he wishes to diversify his investments, especially with the flat real estate market. He suggested that GBI purchase the warehouses. He said that he would give GBI a good deal. GBI decided to buy only one of the warehouses and continue to lease the other one. The price is to be $360,000 with a down payment of 20%. The original owner will carry a mortgage for the remainder with an interest rate of 7.5%. Title is to transfer on March 15. Today GBI sent earnest money of $10,000 to the owner of the warehouse.
12		GBI applied for credit with a new supplier, Cycle Partner U.S.A. A credit application was faxed to CPs headquarters in San Antonio, TX. GBI is anticipating an order with HP for $12,000 in resale merchandise.
13	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 $15,890 due net 30.
14		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 $128,000 worth of bicycles to be delivered immediately. Rocky Mountain will pay the shipping. The bikes cost GBI $78000. 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.
15		GBI received raw materials inventory ordered from Space Bike Composites January 11. Shipping charges of $600 were included in the invoice from Space Bike.
16		GBI received notice that Bunkys Bicycle Emporium had declared section 13 bankruptcy which meant GBI would not be able to collect the $3,350 that Bunkys owed them.
17	January 18	GBI received a $90,000 funds transfer from Silicon Valley Bikes in Palo Alto for the balance due on their account.
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 8.25% 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 without credit, 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.
22	January 27	The county approved GBIs building plans for their new warehouse. Estimated building costs are $1,100,000 which will be funded via a mortgage from Bank of America. GBI plans to break ground on the new building April 18^th of this year.
23		GBI sent a $28,000 check to Night Rider Aluminum Products for an order of bicycle parts GBI received December 30th.
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 $230,000 in bicycles and $108,500 in bicycle accessories and safety gear at special discount prices. The cost of the bicycles in this order is $170000 and the cost of the accessories is $65,000. Big Apple will have a contract trucking company pick up the order when it is ready. The order is sent to GBIs 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 states electronic filing and payment system. GBI filed its return and paid its sales tax for the quarter ending December 31.
26		GBI paid Februarys rent of $4,000 for the office and warehouse space in San Diego.
27		Big Apples truck arrived at GBIs warehouse and picked up the order from January 27^th.

Adjustment information as of January 31, not already given in the original transaction(s):

1)Based on prior experience, GBI estimates that approximately 1/2% of the net sales (gross sales minus returns minus discounts) 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 finished goods inventory was taken at the end of January. It was determined that the value of the trading goods merchandise on hand was $49,000.

3)Production Machinery, Equipment and Fixtures were placed in service on January 1, 2013, with no salvage value. GBI depreciates fixed assets on a straight-line basis and those assets acquired in the first half of the months 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 (i.e. number of days in the month is not of consequence).

4)GBI received a $2,251 bill from PG&E for utilities consumed during January and the January AT&T bill in the amount of $412.

5)Liability insurance for the six-month period ending on February 28 was paid last September on the first of the month. Liability insurance is assumed to be utilized uniformly over the six-month policy period.

6)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.)

7)500 product catalogs were sent out in the month of January.

Date		Accounts Title	Dr	Cr
3-Jan	1	Payables-Salaries and Wages	$92,000
		Cash		$92,000

3-Jan	2	Inventory-Raw Materials (Direct Post)	30,000
		Inventory-Trading Goods (Direct Post)	70000
		Accounts payable		100,000

3-Jan	3	Accounts Receivable	22500
		Sales		22500

		Cost of good sold	15000
		Inventory-Finished Goods (Direct Post)		15000

7-Jan	4	Cash	22000
		Accounts Receivable		22000

10-Jan	5	Accrued Expenses	1200
		Cash		1200
		(assuming all the expenses is utility)

10-Jan	6	Advertising expenses	1467
		Prepaid Advertising (2200/6*4)		1467

11-Jan	7	Advertising expenses	6000
		Accured expenses		6000

	8	No entry required

	9	Cash	21825
		Sales discount (22500*3%)	675
		Accounts Receivable		22500

12-Jan	10	Accounts Payable	100000
		Cash		100000

13-Jan	11	No entry required

	12	No entry required

17-Jan	13	Accounts Payable	15890
		Cash		15890

	14	Accounts Receivable	128000
		Sales		128000

		Cost of good sold	78000
		Inventory-Trading Goods (Direct Post)		78000

	15	Inventory-Raw Materials (Direct Post)	75600
		Accounts payable		75600

	16	Allowance for Bad Debts	3350
		Accounts Receivable		3350

18-Jan	17	Cash	90000
		Accounts Receivable		90000

	18	Accounts Receivable (2750*108.25%)	2977
		Sales		2750
		Sales Tax payable		227

24-Jan	19	No entry required

25-Jan	20	Prepaid Advertising	9000
		Cash		9000

26-Jan	21	Accounts Receivable	27400
		Sales		27400
		Cash		400

		Cost of good sold	17000
		Inventory-Trading Goods (Direct Post)		17000

27-Jan	22	No entry required

	23	Accounts Paybale	28000
		Cash		28000

	24	No entry required

31-Jan	25	Accrued Tax Output	3000
		Cash		3000

	26	Rent expenses	4000
		Cash		4000

	27	Accounts Receivable	338500
		Sales		338500

		Cost of good sold	235000
		Inventory-Finished Goods (Direct Post)		170000
		Inventory-Trading Goods (Direct Post)		65000