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:

FAST DELIVERIES, INCORPORATED
Balance Sheet at January 1
Assets:		Liabilities:
Cash	$ 12,100	Accounts Payable	$ 700
Accounts Receivable	710	Stockholders Equity:
Supplies	330	Common Stock	11,930
		Retained Earnings	510
Total Assets	$ 13,140	Total Liabilities and Stockholders Equity	$ 13,140

Two employees have been hired, at a monthly salary of $2,700 each. The following transactions occurred during January of the current year.

January
1	$4,200 is paid for 12 months insurance starting January 1. (Record as an asset.)
2	$4,800 is paid for 12 months of rent beginning January 1. (Record as an asset.)
3	FDI borrows $28,800 cash from First State Bank at 5% annual interest; this note is payable in two years.
4	A delivery van is purchased using cash. Including tax, the total cost was $24,000.
5	Stockholders contribute $8,000 of additional cash to FDI for its common stock.
6	Additional supplies costing $900 are purchased on account and received.
7	$500 of accounts receivable arising from last years December sales are collected.
8	$400 of accounts payable from December of last year are paid.
9	Performed services for customers on account. Sent invoices totaling $10,500.
10	$7,900 of services are performed for customers who paid immediately in cash.
16	$2,700 of salaries are paid for the first half of the month.
20	FDI receives $4,000 cash from a customer for an advance order for services to be provided later in January and in February.
25	$4,200 is collected from customers on account (see January 9 transaction).

January	Additional information for adjusting entries:
31a.	A $800 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 $240.
31c.	As of January 31, FDI 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 0.05). For convenience, calculate January interest as one-twelfth of the annual interest.
31e.	Assume the van will be used for 4 years, after which it will have no value. Thus, each year, one-fourth of the vans benefits will be used up, which implies annual depreciation equal to one-fourth of the vans total cost. Record depreciation for the month of January, equal to one-twelfth of the annual depreciation expense.
31f.	Salaries earned by employees for the period from January 16 to 31 are $1,350 per employee and will be paid on February 3.
31g.	Adjust the prepaid asset accounts (for rent and insurance) as needed.

Required:

4. Record all adjusting journal entries needed at January 31. Ignore income taxes. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

No	Transaction	General Journal	Debit	Credit
1	(a)	Utilities Expense	800
		Accounts Payable		800
2	(b)	Supplies Expense	240
		Supplies		240
3	(c)	Deferred Revenue
		Service Revenue
4	(d)	Interest Expense
		Interest Payable
5	(e)	Depreciation Expense
		Accumulated Depreciation
6	(f)	Salaries and Wages Expense
		Salaries and Wages Payable
7	(g1)	Insurance Expense
		Prepaid Insurance
8	(g2)	Rent Expense
		Prepaid Rent