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: see Assets: Cash Accounts Receivable Supplies $10,000 740 770 FAST DELIVERIES, INC. Balance Sheet at January 1 Liabilities: Accounts Payable Stockholders' Equity Common Stock Retained Earnings Total liabilities and Stockholders' Equity 11,410 500 $12,410 Total Assets $12,410 Two employees have been hired at a monthly salary of $2.900 each. The following transactions occurred during January of the current year Ch 2 2 2 January 1 2 5 NNNN $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 55,000 of additional cash to FDI for its common stock. Additional supplies costing $1,100 are purchased on account and received 5600 of accounts receivable arising from last year's December sales are collected $500 of accounts payable from December of last year are paid Performed services for customers on account. Sent invoices totaling $19,500. 57,800 of services are performed for customers who paid Imediately in cash. $2,900 of salaries are paid for the first half of the month FOI receives 53,900 cash from a customer for an advance order for services to be provided 7 8 9 10 88 25 $3,600 is collected from customers on account (see January 9 transaction). Ch. 4 4 4 January. Additional information for adjusting entries: 31a. A $1,200 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 $210. 31c. As of January 31, FDI had completed tex of the deliveries for the customer who paid in advance on January 20. 310. 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 0.81). For convenience, calculate January interest as one-twelfth of the annual interest. 3le 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. 31f. Salories earned by employees for the period from January 16-31 are $1,450 per employee and will be paid on February 3. 315. Adjust the prepaid asset accounts (for rent and insurance) as needed. 4 4 4-a. Post the adjusting journal entries from part 3, set up Taccounts for the accounts on the trial balance 4-6. Post the adjusting entries from part 3 and prepare an adjusted trial balance. 15 Complete this question by entering your answers in the tabs below. Reg 4 Reg 40 int Post the adjusting journal entries from part 3, set up T-accounts for the accounts on the trial balance. (Do not round intermediate calculations.) rence: Cash Accounts Receivable Beg Bal Beg Bal End Bal End, Bal Supplies Prepaid Insurance of 5 Beg Bal Beg Bal End Bal End, Bal Book Prepaid Ront Equipment Print Beg Bal Beg Bal erences End. Bal End. Bal Accumulated Depreciation Accounts Payable Beg Bal Beg Bal End Bal End. Bal Deferred Revenue Notos Payable (long torm) 515 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 Ball Beg Bal End. Bal End Bal Rent Expense Depreciation Expense Bog Bal Beg Bal. CES End Bal End. Bal