record as general journal entries

January 17

12.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 $17,010 due net 30.

13.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 $128,130 worth of bicycles to be delivered immediately. Rocky Mountain will pay the shipping. The bikes cost GBI $79,441. 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.

14. GBI received raw materials inventory ordered from Space Bike Composites January 11. Shipping charges of $802 were included in the $100,220 invoice from Space Bike.

15.GBI received notice that Bunkys Bicycle Emporium had declared section 13 bankruptcy which meant GBI would not be able to collect the $1,610 that Bunkys owed them.

January 18

16.GBI received a $89,960 funds transfer from Silicon Valley Bikes in Palo Alto for the balance due on their account.

January 19

17.GBI paid Staples for the office supplies they received January 11.

18. SoCal Bikes in Irvine, CA placed an order for $2,300 in bicycle helmets for a special event in February. The merchandise cost GBI $1,380. 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 8.75% for this order.)

January 24

19.Beantown Bikes in Boston, MA placed an order with GBI for $27,450 in bicycles. The cost of the bicycles is $17,092. 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.

January 25

20. 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 $15,000 for three months of advertising.

January 26

21. GBI received notification from their bank that $27,450 had been transferred to their account from Beantown Bikes, so GBIs warehouse personnel shipped Beantowns order. Beantown will be responsible for paying FedEx $360 for shipping the order.

January 27

22. The county approved GBIs building plans for their new warehouse. Estimated building costs are $1,050,000 which will be funded via a mortgage from Bank of America. GBI plans to break ground on the new building April 18th of this year.

23. GBI sent a $30,890 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 $232,315 in bicycles and $108,490 in bicycle accessories and safety gear at special discount prices. The cost of the bicycles in this order is $169,586 and the cost of the accessories is $65,094. 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.

January 31

25. GBI pays sales tax once a quarter via the states electronic filing and payment system. GBI filed its return and paid $3,063 in sales tax for the quarter ending December 31.