Fast Deliveries, Incorporated $($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:

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

Record journal entries for the transactions that occurred from January $125.$Two employees have been hired, at a monthly salary of $$2,980$ each. The following transactions occurred during January

of the current year.

January

$1$$$4,800$ is paid for $12$ months' insurance starting January $1.($Record as an asset.$)$

$2$$$3,600$ is paid for $12$ months of rent beginning January $1.($Record as an asset.$)$

$3$ FDI borrows $$26,400$ 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 $$24,000.$

Stockholders contribute $$6,000$ of additional cash to FDI for its common stock.

Additional supplies costing $$800$ are purchased on account and received.

$$800$ of accounts receivable arising from last year's December sales are collected.

$$600$ of accounts payable from December of last year are paid.

Performed services for customers on account. Sent invoices totaling $$11,500.$

$$7,600$ of services are performed for customers who paid immediately in cash.

$$2,980$ of salaries are paid for the first half of the month.

FDI receives $$3,800$ cash from a customer for an advance order for services to be provided

later in January and in February.

$$3,200$ is collected from customers on account $($see January $9$ transaction$).$

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.