Fast Deliveries, Inc. (FDI), was organized in December last year and had limited activity last year....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Fast Deliveries, Inc. (FDI), was organized in December last year and had limited activity last year. The resulting bala sheet at the beginning of the current year is provided below: Assets: Cash Accounts Receivable Supplies Total Assets Ch. 2 NNNNNN January 2 3 $10,900 740 770 $12,410 4 5 FAST DELIVERIES, INC. Balance Sheet at January 1 Liabilities: Accounts Payable Stockholders Equity: Common Stock Retained Earnings Total Liabilities and Stockholders Equity Two employees have been hired, at a monthly salary of $2,900 each. The following transactions occurred during Jana of the current year. $ $4,500 is paid for 12 months Insurance starting January 1. (Record as an asset.) $3,600 is paid for 12 months of rent beginning January 1. (Record as an asset.) FDI borrows $28,800 cash from First State Bank at 4% annual Interest; this note is payable in two years. A delivery van is purchased using cash. Including tax, the total cost was $19,200. Stockholders contribute $5,000 of additional cash to FDI for its common stock. 6 Additional supplies costing $1,100 are purchased on account and received. Performed services for customers on account. Sent invoices toteling $10,500. $7,800 of services are performed for customers who paid immediately in cash. 500 11,410 500 $12,410 $600 of accounts receivable arising from last year s December sales are collected. H 3500 of accounts payable from December of last year are paid. 9 AA 333 3 Ch. 4 4 4 4 4 4 10 $7,800 of services are performed for customers who paid immediately in cash. 16 $2,900 of salaries are paid for the first half of the month. 20 FDI receives $3,900 cash from a customer for an advance order for services to be provided later in January and in February. $3,600 is collected from customers on account (see January 9 transaction). 25 January 31a. 31b. 31c. 31d. 31e. 31f. 31g. Additional information for adjusting entriest A $1,200 bill arrives for January utility services. Payment is due February 15. Supplies on hand on January 31 are counted and determined to have cost $210. As of January 31, FOI had completed 60% of the deliveries for the customer who paid in advance on January 20, Accrue one month of interest on the bank loan. Yearly Interest is determined by multiplying the amount borrowed by the annual Interest rate (expressed as 0.04). For convenience, calculate January interest as one-twelfth of the annual interest. Assume the van will be used for 4 years, after which it will have no value. Thus, each year, one-fourth the van s benefits will be used up, which implies annual depreciation equal to one-fourth of the van s total cost. Record depreciation for the month of January, equal to one-twelfth of the annual depreciation expense. Salaries earned by employees for the period from January 16-31 are $1,450 per employee and will be paid on February 3. Adjust the prepaid asset accounts (for rent and insurance) as needed. of 5 ook int ences 2-a. Set up T-accounts for the accounts on the trial balance. Enter beginning balances and post the transactions January 1-25, adjusting entries of January 31. 2-b. Prepare an unadjusted trial balance at January 31. Complete this question by entering your answers in the tabs below. Reg 2A Req 2B Set up T-accounts for the accounts on the trial balance. Enter beginning balances and post the transactions January 1-25, adjusting entries of January 31. Beg Bal 10,900 Beg. Bal Accounts Receivable Beg. Bal End Bal Beg. Bal. End. Bal Bog Bal End Bal Prepaid Rent Accumulated Depreciation Beg. Bal. End. Bal Beg. Bal End. Bal Beg Bat End. Bal Equipment Accounts Payable Beg Bal End. Bal Beg. Bal End Bal Beg. Bal End-Bal Deferred Revenue Interest Payable Common Stock Beg. Bal End. Bal Beg Bal End. Bal. Beg Bal End: Bal Notes Payable (long-term) 0 Salaries and Wages Payable Retained Earnings Beg. Bal End. Bal. Beg Bal End Bal. Beg Bal Service Revenue Utilities Expense Interest Expense Beg Bal End. Bal. Beg Bal End. Bat. Beg Bat Salaries and Wago- Expense Supplies Expenses Insurance Expenses Beg. Bal End. Bal. Rent Expense Beg Bal End. Bal Depreciation Expense Fast Deliveries, Inc. (FDI), was organized in December last year and had limited activity last year. The resulting bala sheet at the beginning of the current year is provided below: Assets: Cash Accounts Receivable Supplies Total Assets Ch. 2 NNNNNN January 2 3 $10,900 740 770 $12,410 4 5 FAST DELIVERIES, INC. Balance Sheet at January 1 Liabilities: Accounts Payable Stockholders Equity: Common Stock Retained Earnings Total Liabilities and Stockholders Equity Two employees have been hired, at a monthly salary of $2,900 each. The following transactions occurred during Jana of the current year. $ $4,500 is paid for 12 months Insurance starting January 1. (Record as an asset.) $3,600 is paid for 12 months of rent beginning January 1. (Record as an asset.) FDI borrows $28,800 cash from First State Bank at 4% annual Interest; this note is payable in two years. A delivery van is purchased using cash. Including tax, the total cost was $19,200. Stockholders contribute $5,000 of additional cash to FDI for its common stock. 6 Additional supplies costing $1,100 are purchased on account and received. Performed services for customers on account. Sent invoices toteling $10,500. $7,800 of services are performed for customers who paid immediately in cash. 500 11,410 500 $12,410 $600 of accounts receivable arising from last year s December sales are collected. H 3500 of accounts payable from December of last year are paid. 9 AA 333 3 Ch. 4 4 4 4 4 4 10 $7,800 of services are performed for customers who paid immediately in cash. 16 $2,900 of salaries are paid for the first half of the month. 20 FDI receives $3,900 cash from a customer for an advance order for services to be provided later in January and in February. $3,600 is collected from customers on account (see January 9 transaction). 25 January 31a. 31b. 31c. 31d. 31e. 31f. 31g. Additional information for adjusting entriest A $1,200 bill arrives for January utility services. Payment is due February 15. Supplies on hand on January 31 are counted and determined to have cost $210. As of January 31, FOI had completed 60% of the deliveries for the customer who paid in advance on January 20, Accrue one month of interest on the bank loan. Yearly Interest is determined by multiplying the amount borrowed by the annual Interest rate (expressed as 0.04). For convenience, calculate January interest as one-twelfth of the annual interest. Assume the van will be used for 4 years, after which it will have no value. Thus, each year, one-fourth the van s benefits will be used up, which implies annual depreciation equal to one-fourth of the van s total cost. Record depreciation for the month of January, equal to one-twelfth of the annual depreciation expense. Salaries earned by employees for the period from January 16-31 are $1,450 per employee and will be paid on February 3. Adjust the prepaid asset accounts (for rent and insurance) as needed. of 5 ook int ences 2-a. Set up T-accounts for the accounts on the trial balance. Enter beginning balances and post the transactions January 1-25, adjusting entries of January 31. 2-b. Prepare an unadjusted trial balance at January 31. Complete this question by entering your answers in the tabs below. Reg 2A Req 2B Set up T-accounts for the accounts on the trial balance. Enter beginning balances and post the transactions January 1-25, adjusting entries of January 31. Beg Bal 10,900 Beg. Bal Accounts Receivable Beg. Bal End Bal Beg. Bal. End. Bal Bog Bal End Bal Prepaid Rent Accumulated Depreciation Beg. Bal. End. Bal Beg. Bal End. Bal Beg Bat End. Bal Equipment Accounts Payable Beg Bal End. Bal Beg. Bal End Bal Beg. Bal End-Bal Deferred Revenue Interest Payable Common Stock Beg. Bal End. Bal Beg Bal End. Bal. Beg Bal End: Bal Notes Payable (long-term) 0 Salaries and Wages Payable Retained Earnings Beg. Bal End. Bal. Beg Bal End Bal. Beg Bal Service Revenue Utilities Expense Interest Expense Beg Bal End. Bal. Beg Bal End. Bat. Beg Bat Salaries and Wago- Expense Supplies Expenses Insurance Expenses Beg. Bal End. Bal. Rent Expense Beg Bal End. Bal Depreciation Expense
Expert Answer:
Related Book For
Fundamentals of Financial Accounting
ISBN: 978-1259864230
6th edition
Authors: Fred Phillips, Robert Libby, Patricia Libby
Posted Date:
Students also viewed these accounting questions
-
The air in a 49 cubic metre kitchen is initially clean, but when Elaine burns her toast while making breakfast, smoke is mixed with the room's air at a rate of 0.08 mg per second. An air conditioning...
-
Swank Clothiers earned $640 million last year and had a 30 percent payout ratio. How much did the firm add to its retained earnings?
-
Auction. com earned $420 million last year and had a 35 percent payout ratio. How much did the firm add to its retained earnings?
-
Read the Poem Little Birds Flying and answer the following questions: What it is notifying? To whom it is notifying? How is the work two dimensional? What does it take to realize the project? ...
-
Explain how the concepts of the demand and supply of petroleum combine to determine market prices.
-
Refer to The Astronomical Journal (July 1995) study of quasars detected by a deep space survey, Exercise 11.72. Recall that several quantitative independent variables were used to model the quasar...
-
The difference between net sales and cost of goods sold is called (a) gross profit. (c) goods available for sale. (b) net purchases. (d) the bottom line.
-
McCarty Pointers Inc. expects to begin operations on January 1, 2012; it will operate as a specialty sales company that sells laser pointers over the Internet. McCarty expects sales in January 2012...
-
PLEASE HELP. On January 1, 2020, ABC Co. leased a machinery to XYZ Co. with the following details: Cost of machinery to the lessor 3,760,100 Residual value guarantee 400.000 Annual rental payable at...
-
For each of the following, identify which GAAP, if any, has been violated. 1. A customer called and made arrangements for Jay's Plumbing to provide $6,000 of services next month. Jay, the owner,...
-
Content AreaThe Wondercress advertising agency rents a skybox at the First Energy Stadium where the Cleveland Browns plays its home games. The cost of the skybox for the season is $60,000 and...
-
How much was the total deposit if sales were $2,000, returns were $400, and sales tax was $250.
-
1) (a) Define how we measure the resilience and yield strength of a metallic material? Explain it using the 6-8 curve. (10p) (b) What is "Creep" and how is it measured? Compare the creep properties...
-
In September 2023, the finance company Lending Tree compiled data on the cost of raising a child from birth to 18 years of age. They collected information from multiple categories including rent,...
-
7. A ball attached to a string of length 0.4 meters is whirled around in a circular path. It experiences a centripetal acceleration of 40 m/s. a. What is the tangential velocity of the ball? b. How...
-
The dollar-value LIFO method was adopted by Whispering Corp. on January 1, 2025. Its inventory on that date was $267,100. On December 31, 2025, the inventory at prices existing on that date amounted...
-
Identify Compliance with the Fair Labor Standards Act 1) A hospital employee is paid $ 6.95 2) A full-time student who works for a local college earns $ 7.20/hour for working four hours/day, four...
-
Identify the Critical Infrastructure Physical Protection System Plan.
-
Fitbit, Inc., reported the following information for the nine-month period ended October 1, 2016. Items are listed alphabetically and are in thousands of dollars. Required: Prepare the four basic...
-
Cycle Wholesaling sold merchandise on account, with terms n/60, to Sarahs Cycles on February 1 for $800 (cost of goods sold of $500). On February 9, Sarahs Cycles returned to Cycle Wholesaling...
-
Refer to PB10-6. Assume Methodical uses the effective-interest bond amortization method. Required: 1. Prepare a bond amortization schedule. 2. Give the journal entry to record the bond issue. 3. Give...
-
The heat equation problem is solved using the explicit scheme (6.2). Find the maximum grid steps \(\Delta x\) and \(\Delta t\) at which the expected error of the solution is less than \(\sim...
-
Consider the heat equation (6.1) with \(a=0.1\) solved in the interval \(0
-
Answer the same question as in problem 3 but for the simple implicit method. problem 3 Consider the heat equation (6.1) with \(a=0.1\) solved in the interval \(0
Study smarter with the SolutionInn App