As a result of some questions raised in class I have added some clarifying comments in the assignment. The comments are on page 9 in the previous events section. Note the changes in bold below.
The updated Exercise 3 Guide is here and also posted on the assignment page.
Events of interest that Occured Previously (in Prior year if no year is listed)
Date Description of Event
|January 1, 2008||Production Machinery, Equipment and Fixtures were placed in service. They are expected to last 15 years with no salvage value.|
|July 30||Payment for GBIs advertisement in the English language edition of Italian Cycling Journal. Advertisement to run in six consecutive monthly publications starting in August. Assume this is the extent of GBIs prepaid advertising.|
|December 22||Windy City Bikes in Chicago, IL invoicied $22,000 for bicycle accessories from GBI. The terms of payment for Windy Citys order are 2 / 20 net 60 days (in laymans terms this means 2% discount if paid in 20 days and net open receivable is due in 60 days).|