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Use the following transactions to complete the next 14 questions: GBI entered into a series of transactions in September, detailed below. Assume that you are

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Use the following transactions to complete the next 14 questions: GBI entered into a series of transactions in September, detailed below. Assume that you are keeping the books for GBI. Reminder: GBI values inventory at moving average cost, which adjusts with each batch of goods received. Assume that GBI had no inventory on hand as of September 1. The questions in this section will refer to the following four transactions: Transaction 1 (Olympic Protective Gear): On September 1, GBI created a purchase order of 60 OHMTs at $20 each from Olympic Protective Gear, terms 1/15, n/45. The purchase order's inventory was received in full from Olympic on September 5 and invoiced by the vendor on September 6. GBI paid the invoice on September 25. Transaction 2 (Dallas Bike Basics): On September 5, GBI created a purchase order of 40 OHMTs at $30 each from Dallas Bike Basics. The purchase order's inventory was received in full on September 8, and GBI was invoiced by the vendor on September 9. The invoice has not yet been paid Transaction 3 (Beantown Bikes): On September 10, GBI processed a sales order for 20 OHMTs to Beantown Bikes. The standard sales price is $50 per unit, but Beantown has a standing 10% discount. The sales order was shipped on September 12, and invoiced on September 14. The customer paid for the order on September 26. The payment terms with Beantown Bikes are 2/10,n/30. Transaction 4 (Motown Bikes): On September 15, GBI processed a sales order for 10 OHMTS to Motown Bikes at the standard sales price of $50 per unit. The sales order was also picked and shipped on September 15, invoiced on September 16, and the customer paid for the order on September 18. The payment terms with Motown Bikes are 1/5, n/30. What is the net effect of Transaction 4 on the balance sheet after the sales order is invoiced on September 16? What is the net effect of Transaction 4 on the bance sheet after the sales order is invoiced on September 16? No net effect on the balance sheet Assets decreased, No change in Liabilities, Stockholders Equity decreased Assets increased, No change in Liabilities, Stockholders Equity increased Assets increased. No change in Liabilities, Stockholders Equity decreased adjusts with each batch of goods received. Assume that GBI had no inventory on hand as of September 1. The questions in this section will refer to the following four transactions: Transaction 1 (Olympic Protective Gear): On September 1. GBI created a purchase order of 60 OHMTs at $20 each from Olympic Protective Gear, terms 1/15, n/45. The purchase order's inventory was received in full from Olympic on September 5 and invoiced by the vendor on September 6. GBI paid the invoice on September 25. Transaction 2 (Dallas Bike Basics): On September 5, GBI created a purchase order of 40 OHMTs at $30 each from Dallas Bike Basics. The purchase order's inventory was received in full on September 8, and GBI was invoiced by the vendor on September 9. The invoice has not yet been paid. Transaction 3 (Beantown Bikes): On September 10, GBI processed a sales order for 20 OHMTs to Beantown Bikes. The standard sales price is $50 per unit, but Beantown has a standing 10% discount. The sales order was shipped on September 12, and invoiced on September 14. The customer paid for the order on September 26. The payment terms with Beantown Bikes are 2/10,n/30. Transaction 4 (Motown Bikes): On September 15, GBI processed a sales order for 10 OHMIS to Motown Bikes at the standard sales price of $50 per unit. The sales order was also picked and shipped on September 15, invoiced on September 16, and the customer paid for the order on September 18. The payment terms with Motown Bikes are 1/5, /30. What is part of the journal entry that GBI would record on September 1 for Transaction 1? Debit Purchases Credit Accounts Payable Debit inventory There is no journal entry on September 1 for Transaction 1

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