Part 1

It is January 1, 2015, the first business day of the month, and you have just been hired as the accountant for Bentley Inc., which operates with monthly accounting periods. For simplicity, ignore all sales tax considerations and assume that Bentley Inc. sells one product. All of the company's accounting work has been completed through the end of December, 2014. Bentley Inc.'s year end is January 31. The post-closing alphabetized trial balance at December 31, 2014 follows.

Bentley Inc. Post-Closing Trial Balance December 31, 2014 Debit Credit Accounts receivable 1 dr 175,300 Accounts payable 2 cr 549,000 Accumulated depreciation, store equipment cr 24,943 Allowance for doubtful accounts cr 14,024 Cash dr 1,644,571.50 Common shares 3 cr 42,000 Interest receivable 4 dr 249.50 Merchandise inventory 5 dr 1,360,000 Notes receivable 4 dr 85,500 Prepaid advertising 6 dr 28,000 Retained earnings cr 2,715,104 Store equipment 7 dr 71,950 Utilities payable cr 20,500 Totals 3,365,571 3,365,571

You have determined that Bentley Inc. uses the moving weighted average cost flow assumption under a perpetual system to account for merchandise inventory and that the terms of all credit sales are 2/10, n/30. Merchandise sells for $209 per unit.

The following source documents are from January :

Inter-Office Memo 21

X

Date:	January 20, 2015
From:	Bonnie Northrup
To:	Office Assistant
Subject:	Cash Disbursement

Please write cheque #1044 to Velor Inc. to pay for the January 11 purchase regarding Invoice 1065.

Thanks, Bonnie Northrup

Inter-Office Memo 22

X

Date:	January 21, 2015
From:	Bonnie Northrup
To:	Office Assistant
Subject:	Cash Disbursement

Please write-off customer account belonging to Barton Corporation as it has been determined to be uncollectible.

Thanks, Bonnie Northrup

Inter-Office Memo 23

X

Date:	January 23, 2015
From:	Bonnie Northrup
To:	Office Assistant
Subject:	Cash Disbursement

Please prepare cheque #1045 to pay dividends of $1.10 per share to shareholders of record on today's date.

Thanks, Bonnie Northrup

Inter-Office Memo 24

X

Date:	January 24, 2015
From:	Bonnie Northrup
To:	Office Assistant
Subject:	Cash Disbursement

Please write cheque #1046 to Allarco Inc. to pay for the January 19 invoice regarding Invoice 1577.

Thanks, Bonnie Northrup

Invoice 6121

X

Bentley Inc. 8486 Paper Street Winnipeg, Manitoba A8K 7P6

Date:	January 25, 2015
Invoice No.:	6121
Credit Terms:	2/10, n/30

Customer: Northstar Corp. 12843 Falton Avenue Ottawa, Ontario K8M 3O7

Rep:	N/A
PO No.:	Verbal

Qty	Description	Unit Price	Total
4,000	Merchandise Inventory	$209	$836,000
		Sub-Total:	$836,000
		Freight:	0
		Total:	$836,000

Inter-Office Memo 25

X

Date:	January 25, 2015
From:	Bonnie Northrup
To:	Office Assistant
Subject:	Cash Disbursement

Please prepare a cheque (#1047) to pay for the December utilities accrued on December 31.

Thanks, Bonnie Northrup

Deposit slip (January 25)

X

Bentley Inc. 8486 Paper Street Winnipeg, Manitoba A8K 7P6

United Corporation 8005 22 Avenue Vancouver, British Columbia V8W 5O1		Date: January 25, 2015 Account No.: 119

Cash
Account payment. RE: Invoice 6120	$1,638,560
Cheques
Total Deposits	$1,638,560

Invoice 1656

X

Vision Consulting Inc. 1014 Franklin Trail Regina, Saskatchewan C8Y 4X2

Date:	January 28, 2015
Invoice No.:	1656
Credit Terms:	1/15, n/30

Customer: Bentley Inc. 8486 Paper Street Winnipeg, Manitoba A8K 7P6

Rep:	Bonnie Northrup
PO No.:	Verbal

Qty	Description	Unit Price	Total
4,000	Merchandise Inventory	$80	$320,000
		Sub-Total:	$320,000
		Freight:	0
		Total:	$320,000

Inter-Office Memo 26

X

Date:	January 31, 2015
From:	Bonnie Northrup
To:	Office Assistant
Subject:	Cash Disbursement

Please prepare a cheque (#1048) in payment of month-end sales salaries, $36,000 and month-end office salaries, $13,000.

Thanks, Bonnie Northrup

a) Journalizing: Prepare journal entries based on an analysis of the preceding source documents and post-closing trial balance below. Note that some source documents may not require an entry. Use the gross method for recording purchases. Enter an appropriate description when entering the transactions in the journal. Dates must be entered in the format dd/mmm (ie. January 15 would be 15/Jan).