Required information C4-6 (Algo) 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) [The following information applies to the questions displayed below) 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: PAST DELIVERIES, INCORPORATED Balance Sheet at January 1 Assets: Liabilities: Cash $ 12,100 Accounts Payable $ 700 Accounts Receivable Stockholders' Equity: Supplies Common Stock 11,930 Retained Earnings Total Assets $ 13, 140 Total Liabilities and Stockholders' Equity $ 13,140 710 330 510 Two employees have been hired, at a monthly salary of $2,700 each. The following transactions occurred during January of the current year January $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 51 annual interest; this note is payable in two years. 4 A delivery van lo 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 year's 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 YDI 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. AS600 bill arrives for January utility services. Payment is due February 15. 3lb. Supplies on hand on January 31 are counted and determined to have cont $240. 310. As of January 31, FDI had completed 601 of the deliveries for the customer who paid in advance on January 20. 31d. Acerue one month of interest on the bank loan. Yearly Interest is determined by multiplying the amount borroved by the annual interest rate (expressed as 0.05). For convenience, calculate January interest as one-twelfth of the annual interest. 310. 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. Salarien earned by employees for the period from January 16 to 31 are $1,350 per employee and will be paid on February ). 31g. Adjust the prepaid asset accounts for rent and insurance) as needed 31. I arrunt SATIN Arne Ano Arrunte On The Traianranter neinninn minnroc Ann CT TO Trancar inne romanian Required information Cash Accounts Receivable Credit Credit Debit Beginning Balance January 9 10,500 500 January 7 4,200 January 25 Debit Beginning Balance January 3 January 5 January 7 January 10 January 20 January 25 8,000 500 4,200 January 1 4,800 January 2 24,000 January 4 400 January 8 2,700 January 16 7.900 4,000 4,200 11,500 Ending Balance 5,800 Ending Balance Supplies Prepaid Insurance Credit Credit Debit Beginning Balance January 8 Debit Beginning Balance January 1 January 31b 900 4,200 January 319 900 Ending Balance 4,200 Ending Balance Prepaid Rent Vehicles Credit Credit Debit Beginning Balance January 2 Debit Beginning Balance January 4 4,800 January 316 24,000 4,800 Ending Balance 24,000 Ending Balance Accumulated Depreciation Accounts Payable Credit Credit Debit Beginning Balance Debit Beginning Balance January 8 January 310 400 900 January 6 800 January 310 1,300 Ending Balance Ending Balance . IURO + ILUMINIO Required information 4,800 24,000 Ending Balance Ending Balance Accumulated Depreciation Accounts Payable Debit Credit Credit Beginning Balance Debit Beginning Balance January 8 January 310 400 900 January 6 800 January 31a Ending Balance Ending Balance 1,300 Deferred Revenue Notes Payablo (long-term) Credit Debit Credit Debit Beginning Balance January 31c Beginning Balance 4.000 January 20 28,800 January 3 Ending Balance 4,000 Ending Balance 28,800 Interest Payable Credit Dobit Beginning Balance Salaries and Wages Payable Dobit Credit Beginning Balance 2,700 January 311 January 310 Ending Balance Ending Balance 2,700 Common Stock Retained Earnings Debit Credit Credit Beginning Balance Debit Beginning Balance 8,000 January 5 Ending Balance 8,000 Ending Balance Service Revenue Credit Debit Beginning Balance Salaries and Wages Expense Debit Credit Beginning Balance January 16 2,700 10,500 January 9 Required Information Ending Balance 8,000 Ending Balance Service Revenue Credit Deblt Beginning Balance Salaries and Wages Expense Debit Credit Beginning Balance January 16 2,700 January 311 10,500 January 9 7,900 January 10 January 310 Ending Balance 18,400 Ending Balance 2,700 Utilities Expense Supplies Expenses Credit Credit Debit Beginning Balance January 31a Debit Beginning Balance January 316 Ending Balance Ending Balance Interest Exponse Insurance Expenses Credit Credit Dobit Beginning Balance January 310 Debit Beginning Balance January 319 Ending Balance Ending Balance Rent Expense Depreciation Expense Credit Credit Debit Beginning Balance January 319 Debit Beginning Balance January 310 Ending Balance Ending Balance