Question

please journalize these transactions

1/3 GBI recieved $55,692 in safety product inventory and $37,128 in raw materials from Dallas Bike Basics. The inventory was ordered on 12/28. The payment terms of the invoice total $92,820 are net 10 days. GBI paid the CWX shipping company $500 with a manual check for the shipment of the goods. The bill lading showed that the safety product inventory arrived in 6 boxes with a total weight of 50lbs and the raw materials came on a pallet and weighed 200lbs. GBI allocates shipping costs by relative shipment weights.

1/4 After careful inspection, GBI found all raw materials recieved on 1/3 from Dallas Bikes Basics to be defective. GBI decided to return all raw materials and re-allocate the $500 shipping costs.

1/6 Accounts receivable of $20,000 were collected including accounts of $9,000 on which 1% sales discounts were allowed.

1/13 To better track inventory, GBI ordered a bar-coding and tracking system which will be installed and tested by CSI. The barcode system costs $5,995 (including sales tax). CSI will charge GBI $1,200 for the installation and tests. GBI paid a deposit of $3,000 on the system. The remainer is due and payable when the system is installed. GBI will classify the bar-coding system as "Production Machinery Equipment and Fixtures"

1/17 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 bikes to be delivered immediately. The bikes cost GBI $79,441. GBI paid UPS $4,353 to expedite shipping, 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.

1/18 GBI's newest bikes equip with auto-pilot and thus are expected to be popular in San Francisco. To get the first batch of products, a dealer Flying Kite placed an order for 20 bikes and prepaid $100,000. The cost to produce each bike is $3,266. Flying Kite will pay $20 per bike for shipping.

1/19 SoCal bikes in Irvine,CA placed an order for $3,000 in bike helmets for a special event in February. The merchandise cost GBI $2,380. 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. Charge 9% sales tax on this order

1/20 $760 was received in payment of an account, which was written off the books as worthless in the previous year

1/24 Beantown Bikes in Boston,MA placed an order with GBI for $27,450 in bikes. The cost of bikes is $17,092. Beantown Bikes is a new customer. Because Beantown is a new customer, they must either wait until their credit is approved or pay for the order before GBI ships the bikes to them.

1/27 The county approved GBI's building plans for their new warehouse. Estimated building costs are $1,050,000 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

1/27 Big Apple Bikes in NYC is expanding to a new location and needs to stock it. GBI received a phone order from Big Apple for $232,315 in bikes and $108,490 in bike accessories and safety gear at special discount prices. The cost of the bikes in this order is $169,586 and the cost of accessories is $65,094. Big Apple will have a contract trucking company pick up the order when its ready. The order is sent to GBI's warehouse for picking and packing which may take a couple of days. Payment terms to the Big Apple this month are net 30.

Big Apple's truck arrived at GBI's warehouse and picked up the order on 1/31

1/28 GBI purchased a piece of land by signing a 2-month, 3%, $50,000 note payable

1/30 GBI issued 1,000 shares of common stocks at $60 per share with a par of $10

1/31 Due to numerous accidents and lawsuits, Flying Kite decided to cancel the order that was placed on 1/18. GBI returned all the prepayment.

Answer 1

Date	Description	Debit	Credit	Note
1-3	Raw materials inventory	$37,128		Assuming Perpetual inventory System is followed by GBI)
1-3	Merchandise inventory	$55,692
1-3	Accounts payable (Dallas Bike Basics)		$92,820
	(on inventory received )
1-3	Raw materials inventory	$400		[200 / 250 ] * 500
1-3	Merchandise inventory	$100		[50 / 250 ] * 500
1-3	Cash / Bank		$500
	(on allocate shipping/ Checking costs )
1-4	Accounts payable (Dallas Bike Basics)	$37,128		Assumed raw material returned on 1-4
1-4	Raw materials inventory		$37,128
	(on return of raw material)
1-4	Merchandise inventory	$400
1-4	Raw materials inventory		$400
	(on re-allocate the $500 shipping costs)

1-6	Cash / Bank	$20,000
1-6	Accounts receivable		$20,090
1-6	Sales discounts		$90	1% Sales discount on $9,000
	(on Accounts receivable collected,)

1-13	Production Machinery Equipment and Fixtures	$5,995		The bar code system costs
1-13	Production Machinery Equipment and Fixtures	$1,200		Installation and tests
1-13	Cash / Bank		$3,000	Deposit Paid
1-13	Accounts payable (CSI)		$4,195	Payable when installed
	(on barcode system received and installed)

1-17	Accounts receivable (Rocky Mountain Bikes)	$128,130		Sales on 45 days credit
1-17	Sales of Goods		$128,130
	(on sales of Bikes)
1-17	Cost of Goods Sold	$79,441
1-17	Merchandise inventory / Finished Goods		$79,441
	(on transfer of bikes COGS)
1-17	Selling expenses (Freight out)	$4,353
1-17	Cash / Bank		$4,353
	(on payment of freight charges)

1-18	Cash / Bank	$100,000
1-18	Unearned sales revenue		$100,000
	(on receipts of advance from Flying Kite)

1-19	Accounts receivable (SoCal bikes)	$3,270
1-19	Sales of Goods		$3,000
1-19	Sales tax Payable		$270
	(on sales of Bikes)
1-19	Cost of Goods Sold	$2,380
1-19	Merchandise inventory / Finished Goods		$2,380
	(on transfer of bikes COGS)

1-20	Cash / Bank	$760
1-20	Bad Debts recovered		$760
	(on written off amount recovered)

1-24	No entry on receipt of order			assumed credit not approved
1-24	No entry on receipt of order			and goods on transferred

1-27 No accounting entry on approval of building plan approval

1-27 No accounting entry for order received from Big Apple Bike, Accounting entry to be passed on satisfaction of order that will be 1-31, when Big Apple Bike transporter will take delivery of goods

1-28	Land	$50,000
1-28	Note payable		$50,000	2-month, 3%, note payable
	(on purchase of land)
1-30	Cash / Bank	$60,000
1-30	Common stocks		$10,000	Per share with a par of $10
1-30	Paid in capital in excess of par		$50,000
	(on issued 1,000 common stocks at $60)

1-31	Unearned sales revenue	$100,000
1-31	Cash / Bank		$100,000
	(on order cancelled, prepayment returned)
1-31	Accounts receivable (Big Apple Bikes)	$340,805
1-31	Sales of Goods (bikes )		$232,315
1-31	Sales of Goods (accessories )		$108,490
	( on sales of goods at credit)
1-31	Cost of Goods Sold	$234,680
1-31	Merchandise inventory / Finished Goods		$169,586
1-31	Merchandise inventory / Finished Goods		$65,094
	(on transfer of bikes/ accessories COGS)