Question

INSTRUCTIONS: Enter the following transactions for Global Bike Inc. (GBI) using the General Ledger module.

NOTE: Use the Chart of Accounts to look up account codes and any required Cost Center Codes.

Exercise 1

Purchase Invoice ###-A1GL: Purchased inventory – operating supplies from MKM Inc. for $10,567.99 on credit.

Document No.                                                

Exercise 2

Bank Loan ###-A2GL: Received an additional $30,000 loan from the bank. Use the 300### account set up for Bank Loan Payable.

Document No.                                                

Exercise 3

Sales Invoice ###-A3GL: Issued an invoice to customer Extreme Bikes for $3,200 for services provided. Note: Revenue for services (repairs and rentals) is recorded to account 650000 – Customer Service Revenue.

Document No.                                                

Exercise 4

Sales Invoice ###-A4GL: Issued an invoice to Jimmy Limited for $21,000 for bicycle accessories. Note: Revenue for the sale of physical items (accessories, parts, whole bikes) is recorded to account 600000 – Sales Revenue.

Document No.                                                

Exercise 5

Memo ###-A5GL: The purchase invoice from Exercise 1 was entered incorrectly. It should have been entered for $10,567. (Requires 2 steps 1. reverse exercise 1 and then 2. properly record the transaction. Use ###-A5GL as the reference for the correction.

Document No. for reversal :                                         

Document No. for correcting entry :                                                

Exercise 6                                                                                                                                               

Sales Invoice ###-A6GL: Issued an invoice to Jimmy Limited for $7,500 for bike parts. Note: Parts are physical items (products) so revenue is recorded to account 600000 – Sales Revenue.

Document No.                                                

Exercise 7                                                                                                                                            

Purchase Invoice ###-A7GL: Received an invoice from MKM Inc. for Inventory – operating supplies for $5,300

Document No.                                                

Exercise 8                                                                                                                                            

Cash Sales Invoice ### A8GL: Received $1,500 cash from a customer for bike rentals. Note: Revenue for services (repairs and rentals) is recorded to account 650000 – Customer Service Revenue.

Document No.                                                

Exercise 9                                                                                                                                            

Cheque Copy ###-A9GL: Issued a cheque for $10,567 to pay the MKM Inc invoice from exercise 5.

Document No.                                                

Exercise 10                                                                                                                                          

Cash Receipt ###-A10GL: Received $21,000 from customer Jimmy Limited for the Sales Invoice in exercise 4.

Document No.                                                

Exercise 11                                                                                                                                          

Bank Debit Memo ###-A11GL: Received a memo from the Bank that $2,000 was automatically deducted from the bank account for rent.

Document No.                                                

Exercise 12                                                                                                                                          

Memo ###-A12GL: $8,000 was transferred from the Bank Account to the Alternate Bank Account.

Document No.                                                

Exercise 13

Download the Audit Journal (i.e., General Journal) to Excel for these transactions.

Answer 1

Solution: