Can someone please help me fill out the following journal entries.· Events Durin
ID: 2567085 • Letter: C
Question
Can someone please help me fill out the following journal entries.·
Events During January
Event Date Description of Event
1
January 4
Employees are paid monthly on the first business day of the month for work done in the previous month. The total payroll for the previous month is $98,000. (Ignore payroll taxes for this assignment.) Accounting wrote and distributed the paychecks.
2
January 5
GBI paid $87,520 for an invoice for raw materials received December 10th from Dallas Bikes Basics. Terms of payment are net 30.
3
In order 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 $9,100 (including sales tax) and CSI will charge GBI $1,200 for the installation and tests. GBI paid a deposit of $3,950 on the system today 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”.
4
January 7
GBI received a $124,265 funds transfer from Silicon Valley Bikes in Palo Alto for the balance due on their account.
5
January 8
Northwest Bikes in Seattle, WA ordered $70,500 of bicycles from GBI. The cost of the bicycles (to GBI) is $46,400. The goods were shipped to Northwest immediately via common carrier and the shipping costs will be paid by Northwest Bikes. The terms of payment for Northwest Bikes’ order are 2/10 net 30 days.
6
January 11
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 31st.) 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 $2,056 via the company’s automatic electronic bill pay program.
7
GBI received $81,043 in raw materials from Space Bike Composites in Houston, TX. This inventory was ordered on December 28. The payment terms for the invoice total of are net 10 days. GBI paid the shipping company $754 with a manual check for the shipment of the goods.
8
January 13
New warehouse shelving ordered in November of last year was delivered and installed this week. The installation was completed and the warehouse manager sign off on the job today. Upon completion the installers submitted an invoice to GBI for the cost of the shelves $22,000 plus 8% sales tax and installation charges of $840. Terms of payment are net 10 days.
9
January 14
GBI ordered $49,112 of raw materials and $68,320 of accessories (trading goods) from Dallas Bike Basics in Dallas, TX. Terms of payment to Dallas Bike Basics are net 30.
10
GBI received payment from Northwest Bikes for their order from January 8. Northwest paid the invoice amount less the discount for paying within 10 days.
11
January 15
GBI received the goods they ordered from Dallas Bike Basics on January 14th. The bill of lading indicated that the raw materials were packed on a pallet weighing 420 pounds and the accessories were in boxes totaling 280 pounds. Dallas added $660 to the original purchase amount for the cost of freight.
12
January 19
GBI wired funds of $81,043 to Space Bike Composites for the order received January 11.
13
As part of GBI’s local advertising campaign, GBI purchased and paid for an advertisement in the Daily Aztec which will run each week from February 1 through May 31. The cost of the series of print ads is $6,000.
14
GBI received notice that Bunky’s Bicycle Emporium had declared section 13 bankruptcy which meant GBI would not be able to collect the $1,515 that Bunky’s owed them.
15
January 20
GBI received a $119,264 funds transfer from Silicon Valley Bikes in Palo Alto for the balance due on their account.
16
GBI paid for the warehouse shelves installed on January 13th using a standard check from their bank account.
17
January 22
SoCal Bikes in Irvine, CA placed an order for $3,000 in bicycle helmets for a special event in February. The merchandise cost GBI $1,802. 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. (Don’t forget to charge sales tax of 8.0% for this order.)
18
GBI ordered $59,992 of bike accessories (trading goods) from Dallas Bike Basics in Dallas, TX. Terms of payment are net 30. Dallas Bike is offering free freight during the last two weeks of the month to promote purchases.
19
January 25
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 $132,745 worth of bicycles to be delivered immediately. Rocky Mountain will pay the shipping. The bikes cost GBI $79,647. 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.
20
January 26
GBI received the goods ordered from Dallas Bike Basics on January 22.
21
GBI paid an invoice from Lightbulb Accessory Kits for ordered trading goods that were received on December 30. The amount of the invoice from Lightbulb is $18,340 due net 30.
22
January 27
The county approved GBI’s building plans for their new warehouse. Estimated building costs are $12,050,000 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 $37,890 check to Night Rider Aluminum Products for an order of bicycle parts GBI received December 30th.
24
January 28
The office manager in San Diego ordered $304 of office (operating) supplies from Office Depot. While on the way back from a delivery, one of the warehouse staff picked up the Office Depot order and brought it to GBI’s office. GBI has an account with Office Depot 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.
25
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 $232,315 in bicycles and $108,490 in bicycle accessories and safety gear at special discount prices. The cost of the bicycles in this order is $169,586 and the cost of the accessories is $65,094. Big Apple will have a contract trucking company pick up the order when it is ready. The order is sent to GBI’s warehouse for picking and packing which may take a couple days. Payment terms to Big Apple for this order are net 30. Shipping terms are FOB shipping point.
26
January 29
GBI pays sales tax once a quarter via the state’s electronic filing and payment system. GBI filed its return and paid $2,158 in sales tax for the quarter ending December 31.
27
GBI paid February’s rent of $10,000 for the office and warehouse space in San Diego.
28
The trucking company picked up the completed order for Big Apple Bikes.
Chart of accounts
Cost of Goods Sold
1
January 4
Employees are paid monthly on the first business day of the month for work done in the previous month. The total payroll for the previous month is $98,000. (Ignore payroll taxes for this assignment.) Accounting wrote and distributed the paychecks.
2
January 5
GBI paid $87,520 for an invoice for raw materials received December 10th from Dallas Bikes Basics. Terms of payment are net 30.
3
In order 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 $9,100 (including sales tax) and CSI will charge GBI $1,200 for the installation and tests. GBI paid a deposit of $3,950 on the system today 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”.
4
January 7
GBI received a $124,265 funds transfer from Silicon Valley Bikes in Palo Alto for the balance due on their account.
5
January 8
Northwest Bikes in Seattle, WA ordered $70,500 of bicycles from GBI. The cost of the bicycles (to GBI) is $46,400. The goods were shipped to Northwest immediately via common carrier and the shipping costs will be paid by Northwest Bikes. The terms of payment for Northwest Bikes’ order are 2/10 net 30 days.
6
January 11
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 31st.) 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 $2,056 via the company’s automatic electronic bill pay program.
7
GBI received $81,043 in raw materials from Space Bike Composites in Houston, TX. This inventory was ordered on December 28. The payment terms for the invoice total of are net 10 days. GBI paid the shipping company $754 with a manual check for the shipment of the goods.
8
January 13
New warehouse shelving ordered in November of last year was delivered and installed this week. The installation was completed and the warehouse manager sign off on the job today. Upon completion the installers submitted an invoice to GBI for the cost of the shelves $22,000 plus 8% sales tax and installation charges of $840. Terms of payment are net 10 days.
9
January 14
GBI ordered $49,112 of raw materials and $68,320 of accessories (trading goods) from Dallas Bike Basics in Dallas, TX. Terms of payment to Dallas Bike Basics are net 30.
10
GBI received payment from Northwest Bikes for their order from January 8. Northwest paid the invoice amount less the discount for paying within 10 days.
11
January 15
GBI received the goods they ordered from Dallas Bike Basics on January 14th. The bill of lading indicated that the raw materials were packed on a pallet weighing 420 pounds and the accessories were in boxes totaling 280 pounds. Dallas added $660 to the original purchase amount for the cost of freight.
12
January 19
GBI wired funds of $81,043 to Space Bike Composites for the order received January 11.
13
As part of GBI’s local advertising campaign, GBI purchased and paid for an advertisement in the Daily Aztec which will run each week from February 1 through May 31. The cost of the series of print ads is $6,000.
14
GBI received notice that Bunky’s Bicycle Emporium had declared section 13 bankruptcy which meant GBI would not be able to collect the $1,515 that Bunky’s owed them.
15
January 20
GBI received a $119,264 funds transfer from Silicon Valley Bikes in Palo Alto for the balance due on their account.
16
GBI paid for the warehouse shelves installed on January 13th using a standard check from their bank account.
17
January 22
SoCal Bikes in Irvine, CA placed an order for $3,000 in bicycle helmets for a special event in February. The merchandise cost GBI $1,802. 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. (Don’t forget to charge sales tax of 8.0% for this order.)
18
GBI ordered $59,992 of bike accessories (trading goods) from Dallas Bike Basics in Dallas, TX. Terms of payment are net 30. Dallas Bike is offering free freight during the last two weeks of the month to promote purchases.
19
January 25
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 $132,745 worth of bicycles to be delivered immediately. Rocky Mountain will pay the shipping. The bikes cost GBI $79,647. 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.
20
January 26
GBI received the goods ordered from Dallas Bike Basics on January 22.
21
GBI paid an invoice from Lightbulb Accessory Kits for ordered trading goods that were received on December 30. The amount of the invoice from Lightbulb is $18,340 due net 30.
22
January 27
The county approved GBI’s building plans for their new warehouse. Estimated building costs are $12,050,000 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 $37,890 check to Night Rider Aluminum Products for an order of bicycle parts GBI received December 30th.
24
January 28
The office manager in San Diego ordered $304 of office (operating) supplies from Office Depot. While on the way back from a delivery, one of the warehouse staff picked up the Office Depot order and brought it to GBI’s office. GBI has an account with Office Depot 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.
25
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 $232,315 in bicycles and $108,490 in bicycle accessories and safety gear at special discount prices. The cost of the bicycles in this order is $169,586 and the cost of the accessories is $65,094. Big Apple will have a contract trucking company pick up the order when it is ready. The order is sent to GBI’s warehouse for picking and packing which may take a couple days. Payment terms to Big Apple for this order are net 30. Shipping terms are FOB shipping point.
26
January 29
GBI pays sales tax once a quarter via the state’s electronic filing and payment system. GBI filed its return and paid $2,158 in sales tax for the quarter ending December 31.
27
GBI paid February’s rent of $10,000 for the office and warehouse space in San Diego.
28
The trucking company picked up the completed order for Big Apple Bikes.
Explanation / Answer
Journal entries for January Ref.no Date Account Debit Credit 1 Jan.4 300700 - Payables - salaries and wages 98000 100000 - Bank account 98000 (To record payment of salaries for Dec.) 2 Jan.5 300000 - Payables - Trade accounts 87520 100000 - Bank account 87520 (To record payment to Dallas Bikes Basics on account) 3 220200 - Production machinery,equipment and fixtures 10300 100000 - Bank account 3950 300000 - Payables - Trade accounts 6350 (To record purchase of bar coding system) 4 Jan.7 100000 - Bank account 124265 110100 - Accounts Receivable 124265 (To record collection from Silicon Valley Bikes on account) 5 Jan.8 110100 - Accounts Receivable 70500 600000 - Sales 70500 (To record sales of bycycles to Northwest Bikes) 780000 - Cost of goods sold 46400 200100 - Inventory - finished goods 46400 (To record cost of goods sold to Northwest Bikes) 6 Jan.11 300800 - Accrued expenses 2056 100000 - Bank account 2056 (To record payment of utility bill for December) 7 Jan.11 200000 - Inventory - Raw maerial 81043 300000 - Payables - Trade accounts 81043 (To record raw material received from Space Bike Composites) 200000 - Inventory - Raw maerial 756 100000 - Bank account 756 (To record shipping charges for the raw material received) 8 Jan.13 220050 - Fixed Assets 24600 300000 - Payables - Trade accounts 24600 (To record purchase of warehouse shelvings ) 9 Jan.14 No entry required 10 100000 - Bank account 69090 610000 - Sales discount 1410 110100 - Accounts Receivable 70500 (To record collection from Northwest Bikes) 11 Jan.15 200000 - Inventory - Raw maerial 49508 200200 - Inventory - Trading goods 68584 300000 - Payables - Trade accounts 118092 (To record receipt of inventory from Dallas Bike Basics) 12 Jan.19 300000 - Payables - Trade accounts 81043 100000 - Bank account 81043 (To record payment to Space Bikes Components on account) 13 Jan.19 212000 - Prepaid Advertising 6000 100000 - Bank account 6000 (To record payment for advertising to be done from February) 14 Jan.19 741200 - Bad debt expense 1515 110100 - Accounts Receivable 1515 (To record write off of amount due from Bunky's Bicycle Emp.) 15 Jan.20 100000 - Bank account 119264 110100 - Accounts Receivable 119264 (To record funds transfer received from Silicon Valley Bikes) 16 Jan.20 300000 - Payables - Trade accounts 24600 100000 - Bank account 24600 (To record payment due for the warehouse shelvning) 17 Jan.22 110100 - Accounts Receivable 3240 600000 - Sales 3000 320000 - Accrued tax output 240 (To record sales of helmets) 720200 - Trading gods consumption expense 1802 200200 - Inventory - Trading goods 1802 (To record cost of helmets sold) 18 No entry required 19 Jan.25 110100 - Accounts Receivable 132745 600000 - Sales 132745 (To record sale of bicycles to Rocky Mountain Bikes) 780000 - Cost of goods sold 79647 200100 - Inventory - finished goods 79647 (To record cost of bicylces sold to Rocky mountain Bikes) 20 Jan.26 200200 - Inventory - Trading goods 59992 300000 - Payables - Trade accounts 59992 (To record receipt of inventory from Dallas Bike Basics) 21 Jan.26 300000 - Payables - Trade accounts 18340 100000 - Bank account 18340 (To record payment to Lightbulb Accessory kits on account) 22 Jan.27 No entry required 23 300000 - Payables - Trade accounts 37890 100000 - Bank account 37890 (To record payment to Night Rider Aluminium Products on a/c.) 24 Jan.28 200600 - Inventory - operating supplies 504 300000 - Payables - Trade accounts 504 (To record purchase of office supplies from Office Depot on a/c.) 25 No entry required 26 Jan.29 320000 - Accrued tax output 2158 100000 - Bank account 2158 (To record payment of sales tax for December) 27 Jan.29 215000 - Prepaid Rent 10000 100000 - Bank account 10000 (To record paymentof rent for February) 28 Jan.29 110100 - Accounts Receivable 340805 600000 - Sales 340805 (To record sale of bicycles and acessories to Big Apple Bikes) 780000 - Cost of goods sold 234680 200000 - Inventory - Raw maerial 169586 200200 - Inventory - Trading goods 65094 (To record cost of goods sold to Big Apple Bikes)