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Record the journal enteries under the appropiate accounts that are provided.
| Account # | Account Title |
| 100000 | Bank Account |
| 110100 | Miscellaneous |
| 110400 | Allowance for |
| 200600 | Inventory-Operating Supplies |
| 200900 | Inventory-Raw Materials (Direct Post) |
| 200910 | Inventory-Finished Goods (Direct Post) |
| 200920 | Inventory-Trading Goods (Direct Post) |
| 210000 | Prepaid Insurance |
| 212000 | Prepaid Advertising |
| 216000 | Deposits on Purchases |
| 220110 | Land (Direct Post) |
| 220210 | Property, Plant & Equipment (Direct Post) |
| 220310 | |
| 300200 | Payables-Miscellaneous |
| 300700 | Payables-Salaries and Wages |
| 300800 | Accrued Expenses |
| 320000 | Accrued Tax-Output |
| 329000 | Common Stock |
| 330100 | |
| 600000 | Sales Revenue |
| 610000 | Sales Discounts |
| 780000 | Cost of Goods Sold |
January 3
GBI received $55,692 in safety product inventory and $37,128 in raw materials from Dallas Bike Basics. This inventory was ordered on December 28. The payment terms for the invoice total of $92,820 are net 10 days. GBI paid the CWX shipping company $550 with a manual check for the shipment of the goods. The bill of lading showed that the safety product inventory arrived in 6 boxes with a total weight of 120 lbs. and the raw materials came on a pallet and weighed 100 lbs.
January 3
Windy City Bikes in Chicago, IL ordered $22,000 of bicycle accessories from GBI. The cost of the accessories (to GBI) is $15,180. The goods were shipped to Windy City immediately via UPS using Windy City’s UPS shipping number. The terms of payment for Windy City’s order are 2/10 net 30 days.
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
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 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.
January 24
Beantown Bikes in Boston, MA placed an order with GBI for $27,450 in bicycles. The cost of the bicycles is $17,092. Beantown Bikes is a new customer. Its buyers saw GBI’s booth at a trade show. Because Beantown is a new customer, they must either wait until their credit can be approved or pay for the order before GBI will ship the bikes to them.
January 27
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.
Financial Transaction:
A financial transaction is a monetary contract between the buyer and seller of the goods, assets or services that specifies the amount of payment. Financial transactions changes the form of the seller's assets as they realize money in exchange of their assets.
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