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 4 January 7 GBI received payment of $16,850 from Little 500 Bicycles in Bloomington, IN for the balance due on their account. unl January 10 GBI's account on the utility company website is updated at the end of each month when the meter is read. GBI uses this data to accrue the expenses at the end of each month (in this case on December 31".) This allows recognition of the expense in the correct period. Expenses are usually accrued at the end of the month as "Accrued Expenses". GBI paid the December utility bill of $988 via the company's automatic electronic bill pay program. January 10 GBI's advertisement in the English language edition of Italian Cycling Journal was published today. This ad was prepaid at the end of July for six months of advertising, August through January, (Five months of advertising have already been used). 6 7 January 11 The office manager in San Diego ordered $350 of office operating) supplies from Staples. While on the way back from a delivery, one of the warehouse staff picked up the Staples order and brought it to GBI's office. GBI has an account with Staples and payment terms are net 10. Operating supplies expense is figured at the end of the month determined by the amount of supplies used during the month. 8 January 11 GBI ordered $99,418 in raw materials from Space Bike Composites in Houston, TX. Terms of payment to Space Bikes are net 30