Fast Deliveries, Inc. (FDI), was organized in December last year and had limited activity last year. The resulting bala sheet at the beginning of the current year is provided below: FAST DELIVERIES, INC. Balance sheet at January 1 Assets: Liabilities: Cash $19,900 Accounts Payable $ 500 Accounts Receivable 740 Stockholders' Equity: Supplies 770 Common Stock 11,410 Retained Earnings 500 Total Assets $12,410 Total liabilities and Stockholders' Equity $12,410 Two employees have been hired, at a monthly salary of $2,900 each. The following transactions occurred during Jan of the current year January Ch. 2 2 2 2 3 EN 4 5 $4,500 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 $28,800 cash from First State Bank at 4% annual interest; this note is payable in two years A delivery van is purchased using cash. Including tax, the total cost was $19,200. Stockholders contribute $5,000 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. 55ee of accounts payable from December of last year are paid. Performed services for customers on account. Sent invoices totaling $10,500 $7,800 of services are performed for customers who paid immediately in cash. 2 2 2 2 8 g 10 - 3 3 3 10 16 20 $7,880 of services are performed for customers who paid immediately in cash. $2,900 of salaries are paid for the first half of the month. FDI receives $3,900 cash from a customer for an advance order for services to be provided later in January and in February. $3,600 is collected from customers on account (see January 9 transaction). 3 25 Ch. 4 4 4 4 January Additional information for adjusting entries 31a. A $1,200 bill arrives for January utility services. Payment is due February 15. 3lb. Supplies on hand on January 31 are counted and determined to have cost $210. 310. As of January 31, FOI 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 0.84). For convenience, calculate January interest as one-twelfth of the annual interest. Ble. 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. 311. Salaries earned by employees for the period from January 16-31 are 51,450 per employee and will be paid on February 3. 318 Adjust the prepaid asset accounts (for rent and insurance) as needed. 4 of 5 2-a. Set up Taccounts for the accounts on the trial balance Enter beginning balances and post the transactions January 1-25, adjusting entries of January 31 2-b. Prepare an unadjusted trial balance at January 31. Complete this question by entering your answers in the tabs below. Reg 2A Reg 28 Sot up T-accounts for the accounts on the trial balance. Enter beginning balances and post the transactions January 1-25, adjusting entries of January 31. Accounts Receivable Bag Bal 10,900 Beg Bal Beg Bal Beg Bal. End. Bal End. Bal Prepaid Rent Equipment Beg. Bal Beg Bal End. Bal End. Bal Accumulated Depreciation Accounts Payable Bog Bal Beg Bal End Bal End. Bal Deferred Revenue Notes Payable (long-term) Beg. Bal. Beg. Bal End. Bal End. Bal 0 Interest Payable Salaries and Wages Payable Beg Bal Beg Bal End Bal. End Bal Common Stock Retained Earnings Beg. Bal Beg. Bal End. Bal End. Bal Service Rovenue Beg. Bal. Salaries and Wages Expense Beg Bal End. Bal End. Bal Utilities Expense Supplies Expenses Beg Bal Beg Bal End Bal End Bal Interest Expense Insurance Expenses Beg. Bal Beg Bal Rent Expense Depreciation Expense Beg. Bal. Beg Bal End. Bal. End. Bal