Assets: Call Accounts Receivable Supplies FAST DELIVERIES, INCORPORATED Balance Sheet at January 1 Liabilities: $ 12,100 Accounts Payable 710 Stockholders' Equity: 330 Common Stock Retained Earnings $ 13, 140 Total Liabilities and Stockholders! Equity $ 789 11,930 510 $ 13, 140 Total Assets Two employees have been hired, at a monthly salary of $2,700 each. The following transactions occurred during January of the current year January 1 2 3 4 5 6 7 8 9 10 16 $4,200 is paid for 12 months' insurance starting January 1. (Record as an asset.) $4,800 is paid for 12 months of rent beginning January 1. (Record as an asset.) FDI borrows $28,800 cash from First State Bank at 5% 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 $8,000 of additional cash to FDI for its common stock. Additional supplies costing $900 are purchased on account and received. $500 of accounts receivable arising from last year's December sales are collected. $400 of accounts payable from December of last year are paid. Performed services for customers on account. Sent invoices totaling $10,500. $7,900 of services are performed for customers who paid inmediately in cash. $2,700 of salaries are paid for the first half of the month, FDI receives $4,000 cash from a customer for an advance order for services to be provided later in January and in February. $4,200 is collected from customers on account (see January 9 transaction). 25 January 315. 31b. 320. 31d. Additional information for adjusting entries: A 5800 bill arrives for January utility services. Payment is due February 15. Supplies on hand on January 31 are counted and determined to have cost $240. 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 amount borrowed by the annual Interest rate (expressed as 0.05). For convenience, calculate January interest as one-twelfth of the annual interlist. Assume the van 411 be used for 4 years, after which it will have no value. Thus, each year, one-fourth of the van's benefits dll 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 to 31 are 51.350 per employee and will be paid on February 3. Adjust the prepaid asset accounts for rent and insurance) as needed 316 115. Credit FAST DELIVERIES, INCORPORATED Unadjusted Trial Balance At January 31 Account Titles Debit Cash Accounts Receivable Supplies Prepaid Insurance Prepaid Rent Vehicles Accumulated Depreciation Accounts Payable Deferred Revenue Notes Payable (long-term) Salaries and Wages Payable Interest Payable Common Stock Retained Earnings Service Revenue Salaries and Wages Expense Supplies Expenses Depreciation Expense Interest Expense Totals 0 $ GA 0