FAST DELIVERIES, INCORPORATED

Balance Sheet at January $1$

Two employees have been hired, at a monthly salary of $$2,980$ each. The following transactions occurred during January

of the current year.

January Additional information for adjusting entries:

$31$a$.$ A $$1,200$ bill arrives for January utility services. Payment is due February $15.$

$31$b$.$ Supplies on hand on January $31$ are counted and determined to have cost $$300.$

$31$c$.$ As of January $31,$ FDI had completed $60\%$ of the deliveries for the customer who paid in advance

on January $20.$

$31$d$.$ 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 $0\mathrm{.}04).$ For convenience, calculate

January interest as one$-$twelfth of the annual interest.

$31$e$.$ 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.

$31$f$.$ Salaries earned by employees for the period from January $16$ to $31$ are $$1,490$ per employee and

will be paid on February $3.$

$31$g$.$ Adjust the prepaid asset accounts $($for rent and insurance$)$ as needed.

$******$DIRECTIONS$********$

Prepare an unadjusted trial balance at January $31.$

Prepare Set up T$-$accounts for the accounts on the trial balance. Enter beginning balances and post the transactions from January $1-25.$ Then post the adjusting journal entries from January $31.($Do not round intermediate calculations.$)$

Prepare an unadjusted trial balance. $($Do not round intermediate calculations$)$

Prepare an income statement sheet

prepare the statement of retained earnings sheet