Question
THE REQUIRES IS THE JOURNAL ENTRIES OF THE FOLLOWING INFORMATION: 22 January 27 The county approved GBIs building plans for their new warehouse. Estimated building
THE REQUIRES IS THE JOURNAL ENTRIES OF THE FOLLOWING INFORMATION:
| 22 | January 27 | The county approved GBIs building plans for their new warehouse. Estimated building costs are $1,300,000 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 $32,000 check to Night Rider Aluminum Products for an order of bicycle parts GBI received December 30th. | |
| 24 | No transaction | 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 $250,000 in bicycles and $108,500 in bicycle accessories and safety gear at special discount prices. The cost of the bicycles in this order is $185,000 and the cost of the accessories is $65,000. 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. |
| 25 | January 31 | GBI pays sales tax once a quarter via the states electronic filing and payment system. GBI filed its return and paid its sales tax for the quarter ending December 31. |
| 26 | GBI paid Februarys rent of $4,000 for the office and warehouse space in San Diego. | |
| 27 | PPE 7300 CASH 4800 DOP 2500 | CSI installed and tested the new barcode system. The warehouse manager approved the installation and commented that she thinks it works great. GBI wrote a check to CSI for the balance owed and gave it to the installer. |
| 28 | Big Apples truck arrived at GBIs warehouse and picked up the order from January 27th. |
Account Balances as of December 31st
| Debit Balance | Credit Balance | |||||
| 100000 | Bank Account | $300,318 | ||||
| 110100 | Accounts Receivable (Direct Posting Account) | 94,670 | ||||
| 110150 | Allowance for Bad Debts | 2,600 | ||||
| 200600 | Inventory-Operating Supplies | 8,832 | ||||
| 200900 | Inventory-Raw Materials (Direct Post) | 52,000 | ||||
| 200910 | Inventory-Finished Goods (Direct Post) | 281,298 | ||||
| 200920 | Inventory-Trading Goods (Direct Post) | 66,474 | ||||
| 210000 | Prepaid Insurance | 3,000 | ||||
| 212000 | Prepaid Advertising | 2,400 | ||||
| 220110 | Land (Direct Post) | 528,000 | ||||
| 220210 | Production Machinery, Equip & Fixtures (Dir.Post) | 915,000 | ||||
| 220310 | Accumulated Depreciation-Machinery (Direct Post) | 408,000 | ||||
| 300200 | Accounts Payable (Direct Posting Account) | 48,000 | ||||
| 300700 | Payables-Salaries and Wages | 94,313 | ||||
| 300800 | Accrued Expenses | 2,200 | ||||
| 320000 | Accrued Tax Output | 4,000 | ||||
| 329000 | Common Stock | 1,010,000 | ||||
| 329100 | Additional Paid-in-Capital | 52,870 | ||||
| 330010 | Retained Earnings (Direct Posting) | 630,009 | ||||
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