Beginning Balance Ending Balance Common Stock Debit Credit 11,160 4,000 January 5 15,160 Retained Earnings Debit Credit Beginning Balance 1,910 Ending Balance 1,910 Service Revenue Debit Credit Beginning Balance Salaries and Wages Expense Debit Credit Beginning Balance 10,600 January 9 January 16 2,740 7,100 January 10 January 31c January 311 2,740 Ending Balance 17,700 Ending Balance 5,480 Utes Expense Supplies Expenses Debit Credit Debit Credit Beginning Balance Beginning Balance January 31a 1,000 January 31b 1,110 Ending Balance 1,000 Ending Balance 1,110 Interest Expense Insurance Expenses Debit Credit Debit Credit Beginning Balance Beginning Balance January 31d January 31g 300 Ending Balance Debit Beginning Balance Rent Expense Credit 0 Ending Balance Debit 300 Depreciation Expense Credit Beginning Balance January 310 500 Cash Accounts Receivable Debit Credit Debit Credit Beginning 12,300 Balance Beginning Balance 810 January 3 25,200 4,200 January 1 January 9 10,600 600 January 5 4,000 3,600 January 2 3,100 January 7 January 25 January 7 600 24,000 January 4 January 10 7,100 200 January 8 January 20 3,600 2,740 January 16 January 25 3,100 Ending 21,160 Balance Ending Balance 7,710 Supplies Debit Credit Prepaid Insurance Debit Credit Beginning Balance 260- Beginning Balance January 6 1,100 250 January 31b January 1 4,200 300 January 31g Ending Balance 1,110 Ending Balance 3,900 Prepaid Rent Vehicles Debit Credit Debit Credit Beginning Balance January 2 3,600 Beginning Balance January 4 24,000 Ending Balance Debit Beginning Balance Ending Balance 3,600 Accumulated Depreciation Ending Balance 24,000 Accounts Payable Credit Debit Credit Beginning 500 January 310 Balance January 8 300- 200 1,100 January 6 500 Ending Balance 1,000 January 31a 2,200 Required information [The following information applies to the questions displayed below.] Fast Deliveries, Incorporated (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, INCORPORATED Balance Sheet at January 1 Liabilities: Accounts Payable Stockholders' Equity: Assets: Cash $ 12,300 Accounts Receivable Supplies 810 260 Common Stock Retained Earnings $ 13,370 Total Liabilities and Stockholders' Equity $ 300 Total Assets 11, 160 1,910 $ 13,370 Two employees have been hired, at a monthly salary of $2,740 each. The following transactions occurred during January of the current year. January 1 2 3 4 5 6 7 9 10 16 20 25 January 31a 31b. 31c. 31d. 31. 31f. 31g. $4,200 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 $25, 200 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 $4,000 of additional cash to FDI for its common stock. Additional supplies costing $1,100 are purchased on account and received. $600 of accounts receivable arising from last year's December sales are collected. $200 of accounts payable from December of last year are paid. Performed services for customers on account. Sent invoices totaling $10,600. $7,100 of services are performed for customers who paid immediately in cash. $2,740 of salaries are paid for the first half of the month. FDI receives $3,600 cash from a customer for an advance order for services to be provided later in January and in February. $3,100 is collected from customers on account (see January 9 transaction). Additional information for adjusting entries: A $1,000 bill arrives for January utility services. Payment is due February 15. Supplies on hand on January 31 are counted and determined to have cost $258. 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 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 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 to 31 are $1,370 per employee and will be paid on February 3. Adjust the prepaid asset accounts (for rent and insurance) as needed