Answer 1-13 on the journal worksheet
Check my work Fast Deliveries, Inc. (FDI), was organized in December last year and had limited activity last year. The resulting balance sheet at the beginning of the current year is provided below FAST DELIVERIES, INC Balance Sheet at January 1 Assets: Liabilities: Accounts Payable Stockholders' Equity: Cash $10,600 750 440 $ 600 Accounts Receivable Supplies Common Stock 11,090 Retained Earnings 100 $11,790 $11,790 Total Assets Total Liabilities and Stockholders' Equity Two employees have been hired, at a monthly salary of $2,980 each. The following transactions occurred during January of the current year. Ch. January $4,800 is paid for 12 mpnths 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 $26,400 cash from First State Bank at 48 annual interest; this note is payable in two years A delivery van is purchased using cash. Including tax, the total cost was $24,000. Stockholders contribute $6,000 of additional cash to FDI for its common stock. Additional supplies costing $800 are purchased on account and received. $800 of accounts receivable aris ing from last year's December sales are collected. $600 of accounts payable from December of last year are paid. Performed services for customers on account. Sent invoices totaling $11,500. $7,600 of services are performed for customers who paid immediately in cash. $2,980 of salaries are paid for the first half of the month. FDI receives $3,800 cash from a customer for an advance order for services to be provided 1ater in January and in February $3,200 is collected from customers on account (see January 9 transaction). 2 1 2 2 3 2 2 4 2 5 6 2 7 8 3 3 10 16 20 3 25 3 January Additional information for adjusting entries Ch. A $1,200 bill arrives for January utility services. Payment is due February 15. Supplies on hand on January 31 are counted and deternined to have cost $300. As of January 31, FDI had completed 608 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. 31a. 4 31b. 31c. 4 4 31d. Next Check my work Ch. January Additional information for adjusting entries: 31a. 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 $300. As of January 31, FDI 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 anount 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 of the van's benefits vill 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 $1,490 per employee and will be paid on February 3 Adjust the prepaid asset accounts (for rent and insurance) as needed. 4 31b. 4 31c. 31d. 4 31e. 31f. ped 31g. 4 ok C4-6 Part 1 Required: int 1. Record journal entries for the transactions that occurred from January 1-25. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) rences View transaction list Journal entry worksheet 13 8 6 7 5 3 4 2 Record $4,800 paid for 12 months' insurance starting January 1. Required information View transaction list Journal entry worksheet
