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 :

Interoffice memo 16

Date:	January 1, 2015
From:	Bonnie Northrup
To:	Office Assistant
Subject:	Cash Disbursement

Please write cheque #1040 to Dylex Corporation in payment of the January rent, $5,600. Charge 40% of the rent to 'Rent expense, selling space' and the balance to 'Rent expense, office space'.

Thanks, Bonnie Northrup

Invoice 6119

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

Date:	January 1, 2015
Invoice No.:	6119
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
1,600	Merchandise Inventory	$209	$334,400
		Sub-Total:	$334,400
		Freight:	0
		Total:	$334,400

Receipt 1489

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

Date:	January 5, 2015
Receipt No.:	1489

Customer: Gulf Corp. 4348 Sesame Crescent Winnipeg, Manitoba W4M 8S5

Rep:	N/A
Invoice No.:	Verbal

Qty	Description	Unit Price	Total
1	Store equipment (see 'Note' below) NOTE: All of the store equipment owned by Bentley Inc. was sold to Gulf Corp.	$46,650	$46,650
		Total:	$46,650
		Paid:	$46,650

Invoice 1814

X

Southgate Inc. 10233 36 Avenue Toronto, Ontario Q3M 2E2

Date:	January 6, 2015
Invoice No.:	1814
Credit Terms:	1/5, n/15

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

Rep:	Bonnie Northrup
PO No.:	Verbal

Qty	Description	Unit Price	Total
6,000	Merchandise Inventory	$79.50	$477,000
		Sub-Total:	$477,000
		Freight:	0
		Total:	$477,000

Inter-Office Memo 17

X

Date:	January 6, 2015
From:	Bonnie Northrup
To:	Office Assistant
Subject:	Cash Disbursement

Please write cheque #1041 to Allarco Inc. in payment of the December 20, 2014 purchase.

Thanks, Bonnie Northrup

Deposit slip (January 9)

X

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

United Corporation 8005 22 Avenue Vancouver, British Columbia V8W 5O1		Date: January 9, 2015 Account No.: 117

Cash
Account payment. RE: Invoice 6119	$327,712
Cheques
Total Deposits	$327,712

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).