Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please use the same format! i am having trouble with matching each transaction appropriately. i dont even understand how t accounts work it confuses me

please use the same format! i am having trouble with matching each transaction appropriately. i dont even understand how t accounts work it confuses me more.
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Re Required information C4-6 Recording/Posting Transactions and Adjustments, and Preparing Trial Balances and Financial Statements-Requires Calculating Depreciation and Interest (Chapters 2, 3, and 4) [LO 2-3, LO 3-3, LO 4. 2, LO 4.4) 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: Assets: Cash Accounts Receivable Supplies FAST DELIVERIES, INC. Balance Sheet at January 1 Liabilities: Accounts Payable Stockholders' Equity: Common Stock Retained Earnings Total Liabilities and Stockholders' Equity $ $12,600 600 720 700 11,900 1,320 $13,920 Total Assets $13,920 Two employees have been hired, at a monthly salary of $2,960 each. The following transactions occurred during January of the current year Two employees have been hired, at a monthly salary of $2.960 each. The following transactions occurred during January of the current year. Ch. NNN January 1 2 3 4 www WNNNNN 5 6 7 8 9 10 16 20 $6,000 is paid for 12 months' insurance starting January 1. (Record as an asset.) $4,800 is paid for 12 months of rent beginning January 1. (Record as an asset.) FDI borrows $30,000 cash from First State Bank at 5% annual interest; this note is payable in two years. A delivery van is purchased using cash. Including tax, the total cost was $28,800. Stockholders contribute $4,000 of additional cash to FDI for its common stock. Additional supplies costing $1,400 are purchased on account and received. $700 of accounts receivable arising from last year's December sales are collected $300 of accounts payable from December of last year are paid. Performed services for customers on account. Sent invoices totaling $10,600. $7,400 of services are performed for customers who paid immediately in cash. $2,960 of salaries are paid for the first half of the month. FDI receives $3,700 cash from a customer for an advance order for services to be provided later in January and in February $3,500 is collected from customers on account (see January 9 transaction). 3 25 Return to 3 25 later in January and in February. $3,500 is collected from customers on account (see January 9 transaction). Ch. 4 4 4 4 January Additional information for adjusting entries 31a A $1,100 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 $280. 310. 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 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. Salaries earned by employees for the period from January 16-31 are $1,480 per employee and will be paid on February 3. 318 Adjust the prepaid asset accounts (for rent and insurance) as needed. 4 4 4 Required information 2-a. Set 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. 2-b. Prepare an unadjusted trial balance at January 31. Answer is not complete. Complete this question by entering your answers in the tabs below. Reg 2A Req 2B Prepare an unadjusted trial balance at January 31. FAST DELIVERIES, INC. Unadjusted Trial Balance Account Titles Debit Credit Cash Beg. Bal. 12,600 Beg. Bal. Accounts Receivable 600 700 10,600 3,500 30,000 4,000 6,000 4,800 (1) 28,800 300 >> (2) OOOOO 700 2.960 7,400 3,700 3,500 End. Bal 19,040 End. Bal. 7,000 Beg Bal Supplies 720 1,400 Beg. Bal Prepaid Insurance 0 6,000 LIMUULI U.VN Required information End. Bal. 2,120 End. Bal. 6,000 Prepaid Rent 4,800 X Beg Bal Equipment 28,800 Beg. Bal. End, Bal 4,800 End, Bal 28,800 Accumulated Depreciation Beg Bal Beg. Bal Accounts Payable 300 300 1,400 700 2.100 End. Bal End. Bal Deferred Revenue Notes Payable (long-term) Beg. Bal. Beg. Bal C Prey 2 3 4 5 of 5 HB Next > Required information 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 Dol IDAR DI Required information End. Bal. End. Bal. Service Revenue Beg. Bal Salaries and Wages Expense Beg. Bal End, Bal End. Bal Utilities Expense Supplies Expenses Beg. Bal. Beg Bal End. Bal End Bal 1 Required information Interest Expense Insurance Expenses Beg. Bal. Beg. Bal End. Bal. End. Bal. Rent Expense Depreciation Expense 625 % 625 Beg. Bal. Beg. Bal. End. Bal. End Bal Rea 2 Required information Account Titles Credit Debit 29,900 $ Cash Accounts Receivable Supplies Prepaid Insurance Prepaid Rent Equipment Accumulated Depreciation Accounts Payable Deferred Revenue Notes Payable (long-term) Salaries and Wages Payable Interest Payable Common Stock Retained Earnings Service Revenue Salaries and wanda Financa Required information Accumulated Depreciation Accounts Payable Deferred Revenue Notes Payable (long-term) Salaries and Wages Payable Interest Payable Common Stock Retained Earnings Service Revenue Salaries and Wages Expense Supplies Expenses Depreciation Expense Interest Expense Totals $ 29,900 $ 0

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Handbook Of Communication Audits For Organisations

Authors: Owen D.W. Hargie, Dennis Tourish

1st Edition

0415186420, 978-0415186421

More Books

Students also viewed these Accounting questions