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 :

Invoice 1065

X

Velor Inc. 11323 Elm Avenue Toronto, Ontario B7M 9P7

Date:	January 11, 2015
Invoice No.:	1065
Credit Terms:	n/15

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

Rep:	Bonnie Northrup
PO No.:	Verbal

Qty	Description	Unit Price	Total
5	Office furniture Estimated useful life : 5 years. Estimated residual value : N.A; will be donated to charity. (use the straight-line method calculated to the nearest whole month when depreciating this asset.)	$2,700	$13,500
		Sub-Total:	$13,500
		Freight:	0
		Total:	$13,500

CM114

X

Velor Inc. 11323 Elm Avenue Toronto, Ontario B7M 9P7

Date:	January 12, 2015
Original Invoice No.:	1065

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

Qty	Description	Unit Price	Total
1	Office furniture returned due to defects.	$2,700	$2,700
		Total:	$2,700

Deposit slip (January 15)

X

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

X-cell Inc. 3454 83 Avenue Toronto, Ontario Q1C 7O6		Date: January 15, 2015 Account No.: 118

Cash
Cheques
N/A (re: interest and principal regarding the note receivable)	$3,828
Total Deposits	$3,828

Inter-Office Memo 18

X

Date:	January 15, 2015
From:	Bonnie Northrup
To:	Office Assistant
Subject:	Cash Disbursement

Employees earn monthly salaries and are paid bi-monthly. Please prepare a cheque (#1042) in payment of mid-month sales salaries, $36,000 and mid-month office salaries, $13,000.

Thanks, Bonnie Northrup

Invoice 6120

X

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

Date:	January 16, 2015
Invoice No.:	6120
Credit Terms:	2/10, n/30

Customer: United Corporation 8005 22 Avenue Vancouver, British Columbia V8W 5O1

Rep:	N/A
PO No.:	Verbal

Qty	Description	Unit Price	Total
8,000	Merchandise Inventory	$209	$1,672,000
		Sub-Total:	$1,672,000
		Freight:	0
		Total:	$1,672,000

Inter-Office Memo 19

X

Date:	January 18, 2015
From:	Bonnie Northrup
To:	Office Assistant
Subject:	Issuance of Shares

Please issue 12,000 shares at $2.25 per share.

Thanks, Bonnie Northrup

Inter-Office Memo 20

X

Date:	January 18, 2015
From:	Bonnie Northrup
To:	Office Assistant
Subject:	Cash Disbursement

Please write cheque #1043 to Southgate Inc. to pay for the January 6 purchase.

Thanks, Bonnie Northrup

Invoice 1577

X

Allarco Inc. 14517 28 Street Toronto, Ontario T4C 3C4

Date:	January 19, 2015
Invoice No.:	1577
Credit Terms:	2/10, n/30

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

Rep:	Bonnie Northrup
PO No.:	Verbal

Qty	Description	Unit Price	Total
8,000	Merchandise Inventory	$79	$632,000
		Sub-Total:	$632,000
		Freight:	0
		Total:	$632,000

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).