Solve for the adjusting entry:-

2018

Debit Balance Credit Balance

100000 Bank Account dr $300,318

110100 Accounts Receivable (Direct Posting Account) dr 94,670

110150 Allowance for Bad Debts cr 2,600

200600 Inventory-Operating Supplies dr 8,832

200900 Inventory-Raw Materials (Direct Post) dr 52,000

200910 Inventory-Finished Goods (Direct Post) dr 281,298

200920 Inventory-Trading Goods (Direct Post) dr 66,474

210000 Prepaid Insurance dr 3,000

212000 Prepaid Advertising dr 2,400

220110 Land (Direct Post) dr 528,000

220210 Production Machinery, Equip & Fixtures (Dir.Post) dr 915,000

220310 Accumulated Depreciation-Machinery (Direct Post) cr 408,000

300200 Accounts Payable (Direct Posting Account) cr 48,000

300700 Payables-Salaries and Wages cr 94,313

300800 Accrued Expenses cr 2,200

320000 Accrued Tax Output cr 4,000

329000 Common Stock cr 1,010,000

329100 Additional Paid-in-Capital cr 52,870

330010 Retained Earnings (Direct Posting) cr 630,009

Payables-Salaries and Wages	94,313
Bank Account		94,313
to record payment of salaries and wages
Inventory-Trading Goods (Direct Post)	60,600
Inventory-Raw Materials (Direct Post)	40,900
Accounts Payable (Direct Posting Account)		100,000
Bank Account		1,500
to record acquisition of invemtory and payment of shipment
Accounts Receivable (Direct Posting Account)	22,500
Cost of Goods Sold	15,000
Sales Revenue		22,500
Inventory-Trading Goods (Direct Post)		15,000
to record the sale of accessories
Bank Account	24,000
Accounts Receivable (Direct Posting Account)		24,000
to record payment receipt from Northwest bikes
Accrued Expenses	2,200
Bank Account		2,200
to record payment of utilities
Advertising Expense	1,100
Prepaid Advertising		1,100
to record advertisiment expense
Inventory-Operating Supplies	380
Accounts Payable (Direct Posting Account)		380
to record receipt of Staples
Bank Account	21,825
Sales Discount	675
Accounts Receivable (Direct Posting Account)		22,500
to recors payment of windy city bikes
Accounts Payable (Direct Posting Account)	100,000
Bank Account		100,000
to record payment to Dallas Bike Basics
Deposits on Purchases	8,800
Bank Account		2,000
Accounts Payable (Direct Posting Account)		6,800
to record the purchase of barcoding
Accounts Payable (Direct Posting Account)	15,890
Bank Account		15,890
to record payment of Lightbulb Accesorry Kits
Accounts Receivable (Direct Posting Account)	128,000
Cost of Goods Sold	78,000
Sales Revenue		128,000
Inventory-Finished Goods (Direct Post)		78,000
to record sale to Rocky Mountain Bikes(Denver)
Inventory-Raw Materials (Direct Post)	75,600
Accounts Payable (Direct Posting Account)		75,600
to record purchase of raw material(Space Bike)
Allowance for Bad Debts	4,200
Accounts Receivable (Direct Posting Account)		4,200
to record Bad debt expense
Bank Account	90,000
Accounts Receivable (Direct Posting Account)		90,000
to record payment from Sillicon Valley Bikes
Accounts Payable (Direct Posting Account)	380
Bank Account		380
Accounts Receivable (Direct Posting Account)	2,977
Cost of Goods Sold	1,300
Sales Revenue		2,750
Accrued Tax- Input		227
Inventory-Trading Goods (Direct Post)		1,300
to record sale of inventory
Prepaid Advertising	9,000
Bank Account		9,000
to record payment for advertising
Bank Account	27,000
Cost of Goods Sold	17,000
Sales Revenue		27,000
Inventory-Finished Goods (Direct Post)		17,000
to record sale to Beantown Bikes
Accounts Payable (Direct Posting Account)	32,000
Bank Account		32,000
to record payment to Night Rider Aluminum
Accrued Tax Output	3,000
Bank Account		3,000
to record payment sale tax
Prepaid Rent	4,000
Bank Account		4,000
to record prepaid rent
Accounts Payable (Direct Posting Account)	6,800
Bank Account		6,800
to record payment for barcoding system
Accounts Receivable (Direct Posting Account)	358,500
Cost of Goods Sold	250,000
Sales Revenue		358,500
Inventory-Trading Goods (Direct Post)		65,000
Inventory-Finished Goods (Direct Post)		185,000
to record sale to Big Apple Bikes

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

1. Based on prior experience, GBI estimates that approximately 1.5 % of the credit sales from each month will become bad debt. GBI writes off bad debts as they occur and recognizes bad debt expense based on percentage of credit sales 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 finished goods merchandise on hand was $1,200.

3. GBI counted the office (operating) supplies on hand after the close of business on the last day of the month and determined the cost of the unused office supplies to be $1000.

4. Production Machinery, Equipment and Fixtures were placed in service on January 1, 2013, with no salvage value. The bar-code system has a 5-year life and no salvage value. GBI depreciates fixed assets on a straight-line basis and those assets placed in service 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).

5. GBI used the Internet to review the monthly charges for utilities the business consumed during January. Based on the Internet report, the amount to be billed by the utilities company for January usage is the same as was billed for December.

6. Liability insurance for the six-month period ending on January 31 was paid last August on the first of the month. Liability insurance is assumed to be utilized uniformly over the six-month policy period.

7. 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, office, and administrative payrolls and assume all wages expense is towards labor expense.