Trial Balance as of December 31 Credit Balance Debit Balance $252,518 108,420 $2,500 750 32,000 281,298 66,474 5,000 Account 100000 110100 110400 200600 200900 200910 200920 210000 212000 220110 220210 220310 300200 300700 300800 320000 329000 330100 Title Bank Account Miscellaneous Accounts Receivable Allowance for Bad Debt Inventory-Operating Supplies Inventory- Raw Materials (Direct Post) Inventory-Finished Goods (Direct Post) Inventory-Trading Goods (Direct Post) Prepaid Insurance Prepaid Advertising Land (Direct Post) Property, Plant & Equipment (Direct Post) Accumulated Depreciation-PP&E (Direct Post) Payables-Miscellaneous Payables-Salaries and Wages Accrued Expenses Accrued Tax-Output Common Stock Retained Earnings (Direct Posting) 1,000 425,000 915,000 305,000 47,900 110,000 988 3,063 1,000,000 618,009 10 11 Windy City paid the invoice amount less the discount for paying within 10 days. January 12 GBI paid $92,820 via bank transfer for the inventory order that they received from Dallas Bike Basics January 3. January 13 To better track inventory, GBI ordered a bar-coding and tracking system which will be installed and tested by Computer Specialists, Inc. (CSI). The system will allow employees to track inventory using mobile devices and special software which will link into their new computerized accounting system. The barcode system costs $5,995 (including sales tax) and CSI will charge GBI $1,200 for the installation and tests. GBI paid a deposit of $3,000 on the system and the remainder is due and payable when the system is installed. GBI will classify the bar-coding system as "Production Machinery, Equipment and Fixtures". January 17 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. 12 13 14 January 17 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. January 17 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 January 17 GBI received notice that Larry's Bicycle Emporium had declared section 13 bankruptcy which meant GBI would not be able to collect the $1,610 that Larry's owed them January 18 GBI received a $89,960 funds transfer from Silicon Valley Bikes in Palo Alto for the balance due on their account. January 19 GBI paid Staples for the office supplies they received January 11. 15 16 17 18 January 19 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 GBI's warehouse. Terms of payment are net 30. (Do not forget to charge sales tax of 8.75% for this order.) Trial Balance as of December 31 Credit Balance Debit Balance $252,518 108,420 $2,500 750 32,000 281,298 66,474 5,000 Account 100000 110100 110400 200600 200900 200910 200920 210000 212000 220110 220210 220310 300200 300700 300800 320000 329000 330100 Title Bank Account Miscellaneous Accounts Receivable Allowance for Bad Debt Inventory-Operating Supplies Inventory- Raw Materials (Direct Post) Inventory-Finished Goods (Direct Post) Inventory-Trading Goods (Direct Post) Prepaid Insurance Prepaid Advertising Land (Direct Post) Property, Plant & Equipment (Direct Post) Accumulated Depreciation-PP&E (Direct Post) Payables-Miscellaneous Payables-Salaries and Wages Accrued Expenses Accrued Tax-Output Common Stock Retained Earnings (Direct Posting) 1,000 425,000 915,000 305,000 47,900 110,000 988 3,063 1,000,000 618,009 10 11 Windy City paid the invoice amount less the discount for paying within 10 days. January 12 GBI paid $92,820 via bank transfer for the inventory order that they received from Dallas Bike Basics January 3. January 13 To better track inventory, GBI ordered a bar-coding and tracking system which will be installed and tested by Computer Specialists, Inc. (CSI). The system will allow employees to track inventory using mobile devices and special software which will link into their new computerized accounting system. The barcode system costs $5,995 (including sales tax) and CSI will charge GBI $1,200 for the installation and tests. GBI paid a deposit of $3,000 on the system and the remainder is due and payable when the system is installed. GBI will classify the bar-coding system as "Production Machinery, Equipment and Fixtures". January 17 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. 12 13 14 January 17 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. January 17 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 January 17 GBI received notice that Larry's Bicycle Emporium had declared section 13 bankruptcy which meant GBI would not be able to collect the $1,610 that Larry's owed them January 18 GBI received a $89,960 funds transfer from Silicon Valley Bikes in Palo Alto for the balance due on their account. January 19 GBI paid Staples for the office supplies they received January 11. 15 16 17 18 January 19 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 GBI's warehouse. Terms of payment are net 30. (Do not forget to charge sales tax of 8.75% for this order.)