Check my Required information C4-6 Recording/Posting Transactions and Adjustments, and Preparing Trial Balances and Financial Statements-Requires Calculating Depreciation and Interest (Chapters 2, 3, and 4) [LO 2-3, LO 3-3, LO 4- 2, LO 4-4) 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: Cash $12,600 Accounts Payable $ 700 Accounts Receivable 600 Stockholders' Equity: Supplies 720 Common Stock 11,900 Retained Earnings 1,320 Total Assets $13,920 Total Liabilities and Stockholders' Equity $13,920 Two employees have been hired, at a monthly salary of $2.960 each. The following transactions occurred during January of the current year Ch. 2 2 2 January 1 2 3 $6,000 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 $30, eee cash from First State Bank at 5% annual interest; this note is payable in two years. ch NNN January 1 2. 3 2 2 2 2 2 3 3 3 3 4 5 6 7 8 9 10 16 20 $6,000 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 $30, eee 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 $28,800. Stockholders contribute $4,000 of additional cash to FDI for its common stock. Additional supplies costing $1,400 are purchased on account and received. $7ee of accounts receivable arising from last year's December sales are collected. $300 of accounts payable from December of last year are paid. Performed services for customers on account. Sent invoices totaling $10,600. $7,40e of services are performed for customers who paid immediately in cash. $2,960 of salaries are paid for the first half of the month. FDI receives $3,700 cash from a customer for an advance order for services to be provided later in January and in February. $3,500 is collected from customers on account (see January 9 transaction). 3 25 Ch. 4 4 4 4 January Additional ormation for adjusting entries: 31a. A $1,100 bill arrives for January utility services. Payment is due February 15. 31b. Supplies on hand on January 31 are counted and determined to have cost $280. 31c. As of January 31, FDI had completed 60% of the deliveries for the customer who paid in advance on January 20 31d. 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. 31e. Assume the van will be used for 4 years, after which it will have no value. Thus, each year, one-fourth of the vanis 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. 31f. Salaries earned by employees on the period from January 16-31 are $1,489 per employee and 11 AM 4 4 Required: 1. Record journal entries for the transactions that occurred from January 125. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 5 6 7 > 8 .. 13 Record $6,000 paid for 12 months' insurance starting January 1. Note: Enter debits before credits General Journal Debit Credit Date Jan 01 Required: 1. Record journal entries for the transactions that occurred from January 125. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list View journal entry worksheet No Date General Journal Debit Credit