Question

THE REQUIRES IS THE JOURNAL ENTRIES OF THE FOLLOWING INFORMATION:

22	January 27	The county approved GBI’s building plans for their new warehouse. Estimated building costs are $1,300,000 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 $32,000 check to Night Rider Aluminum Products for an order of bicycle parts GBI received December 30th.
24	No transaction	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 $250,000 in bicycles and $108,500 in bicycle accessories and safety gear at special discount prices. The cost of the bicycles in this order is $185,000 and the cost of the accessories is $65,000. 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.
25	January 31	GBI pays sales tax once a quarter via the state’s electronic filing and payment system. GBI filed its return and paid its sales tax for the quarter ending December 31.
26		GBI paid February’s rent of $4,000 for the office and warehouse space in San Diego.
27	PPE 7300 CASH      4800 DOP      2500	CSI installed and tested the new barcode system. The warehouse manager approved the installation and commented that she thinks it works great. GBI wrote a check to CSI for the balance owed and gave it to the installer.
28		Big Apple’s truck arrived at GBI’s warehouse and picked up the order from January 27th.

Account Balances as of December 31^st

		Debit Balance		Credit Balance
100000	Bank Account	$300,318
110100	Accounts Receivable (Direct Posting Account)	94,670
110150	Allowance for Bad Debts			2,600
200600	Inventory-Operating Supplies	8,832
200900	Inventory-Raw Materials (Direct Post)	52,000
200910	Inventory-Finished Goods (Direct Post)	281,298
200920	Inventory-Trading Goods (Direct Post)	66,474
210000	Prepaid Insurance	3,000
212000	Prepaid Advertising	2,400
220110	Land (Direct Post)	528,000
220210	Production Machinery, Equip & Fixtures (Dir.Post)	915,000
220310	Accumulated Depreciation-Machinery (Direct Post)			408,000
300200	Accounts Payable (Direct Posting Account)			48,000
300700	Payables-Salaries and Wages			94,313
300800	Accrued Expenses			2,200
320000	Accrued Tax – Output			4,000
329000	Common Stock			1,010,000
329100	Additional Paid-in-Capital			52,870
330010	Retained Earnings (Direct Posting)			630,009

Answer 1

1.

No entry reuired as no expenses done on behalf of building and no loan has been obtained from bank so no financial transaction done so no entry required

2

A/c Payable A/c Dr 32000

To Bank A/c Cr 32000

(Paid to night rider in capacity of account payable)

3

Accrued Sales Tax Dr 4000

To Bank A/c Cr 4000

(Accrued sales tax for the quarter ending Dec is paid now)

4

Cash A/c Dr 4000

To Advance Rent 4000

(Advance Rent for month of Feb Paid)

5

A/c Payable (CSI) Dr 2500

To Bank Cr 2500

(Balance payment towards CSI paid to CSO on completion of installation)

6

Bicycle A/c Dr 250000

Bicycle Parts A/c Dr 108500

To Sales A/c 358500

(sales of bycycles and parts made and recorded)

7

Sales A/c Dr 358500

To A/c Receivable A/c Dr 358500

(A/c Receivable Raisd on accout of sales)

8

Profit and loss A/c Dr 108500

To Earning A/c Cr 108500

(Profit realised on sale )

So above are the journal entries and all the figures stated above in USD($)