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: Assets: Cash Accounts Receivable Supplies $10,900 Fast Deliveries Inc Balance Sheet At Jan 1, CY Liabilities: Accounts Payable SS 500 $ 500 800 Total Liabilities $ 400 Stockholders Equity: Common Stock $ 11,000 Retained Earnings $ 600 Total Stockholders Equity $ 11,600 Total Assets $ 12,100 Total Liabilities & Stockholders Equity $ 12,100 Additional Information: Two employees have been hired, at a monthly salary of $2,200 each, starting on January 1. The following transactions occurred during January of the current year. Jan PROJECT #1 - PART A 1 Paid 12 months insurance starting January 1, $5,700. 2 Paid 12 months rent starting January 1, $4,200. 3 FDI borrows $30,000 cash from First State Bank at 6% annual interest; this note is payable in two years. 4 A delivery van is purchased using cash. The total cost was $24,000. 5 Stockholders contribute $6,000 of additional cash to FDI for its common stock. 6 Additional supplies costing $1,000 are purchased on account and received. 7 Accounts receivable of $600 is collected from December sales. 8 Accounts payable of $400 is paid from December purchases. 9 Performed services for customers on account, sending invoices totaling $10,400. 10 Performed services for customers totaling $7,600 who paid in cash. 16 Salaries totaling $2,200 were recorded and paid for the first half of the month. 20 FDI receive $3,500 cash from a customer for an advance order for services to be provided later in January and February. 25 Accounts receivable of $4,500 is collected from customer on account from January 9. REQUIRED FOR POINTS Part A: PROCESS (steps to follow): 1 Record journal entries for the transactions dated January 1-25 of the current year on the enclosed journal entry form (separate tab). 2 Create a T-account for every account used to date by FDI on the T-account tab. Correctly post any beginning balances. Post each of the entries to the correct T-accounts on the enclosed T-account form (separate tab). 3 Using the addition/sum and subtract functions in Excel/Sheets, calculate the correct subtotal balance for each T-account on the enclosed form. A suggestion to check the work is to create an unadjusted trial balance using the subtotals*** An example of the process can be found in the demonstration case starting on page 177 through page 179. Be sure to reference the Learning Resources (Google slides for chapter 2-4). Use of the basic reference/linking function and addition/sum/subtraction function in Excel/Sheets must be included to the fullest extent possible to earn full project points. Referencing 'answer' cells back to "input' cells creates a functioning, effective worksheet. Either the Google Sheet can be shared with me or the Excel worksheet can be placed in the Assignment/Dropbox folder in D2L Jan PROJECT #1-PART B 31 A $1,200 invoice/bill arrives for utility services used in January. Payment is due Feb 15. 31 Supplies on hand on Jan 31 are counted and determined to have cost $250. 31 As of Jan 31, FDI had completed 60% of the deliveries for the customer who paid in advance on Jan 20. mer who paid in ince on Jan 20, 31 As of Jan 31, FDI owed one month of interest on the loan from Jan 3. 31 The delivery van purchased on Jan 4 has been in use for one month. The life of the van is 4 years and method used is based on life. 31 Salaries earned by employees for the second half of the month are 1,100 per employee and will be paid Feb 3. 31 Prepaid rent and insurance were both used for January REQUIRED FOR POINTS: This uses your Part A file to continue the process. Using the balances in the T-accounts (update as needed from Part A submission) and the information given, calculate and record the adjusting journal entries for January 4 31 on the enclosed journal entry form (same tab). 5 Post each of the adjusting entries to the same T-accounts on the enclosed T-account form. This posting should be below the previous totals submitted for Part A Using the addition/sum and subtract functions in Excel/Sheets, calculate the correct final balance for each T-account on the correct side. The T-account should have the unadjusted total, the adjusting journal entries, then a new separate final total. A suggestion to check the work is to create an adjusted trial balance using the 6 totals*** 7 Prepare the 3 Financial statements in good form using the final ending T-account balances as of January 31, current year Use the reference or linking function in Excel/Sheets to link the financial statements accounts and amounts to the T-accounts. Referencing 'answer' cells back to 'input' cells creates a functioning, effective worksheet. Making these connections allows the worksheet to be used for analyzing potential changes in the results. A blank sheet/tab is included, but the statements should be created by the student. Financial statements must follow outline shown in the textbook and homework with titles and totals