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: Two employees have been hired, at a monthly salary of $2,360 each. The following tranactions occurred during January of the current year. 78500 of accounts receivable arising from last year"s Decenber sales are collected. 8.$400 of accounts payable froe Decenber of last year are paid. 9 Perforned services for customers on account. Sent invoices totaline $10,000. 10$7,900 of services are perforned for custoners who paid insediately in cash. 16 \$2, $60 of salaries are paid for the first half of the month. 20 FOI receives $4,000 cash from a custoner for an advance order for services to be peovided later in January and in February. 25. $4,300 is collected froe custosers on account (see January 9 transaction). 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 $290. 31c. As of January 31 , FDI had conpleted 695 of the deliveries for the custoner who paid in advance on January 20 . 31d. Accrue one month of interest on the bank loan. Yearly interest is deternined by multiplying the amount borrowed by the annual intecest rate (expressed as 0.05). For convenience, calculate January interest as one twelfth of the annual interest. 31e. Assume the yan will be used for 4 years, after wich it wlil bave no value, Thus, each year, one-fourth of the van's benefits will be used up, which inplies annual depreciation equal to one-fourth of the van's total cost, Record depreciation for the eonth of January, equal to onetivelfth of the annual depreciation expense. 311. Salarles earned by enployees for the period fros 3 anuary 16 to 31 are $1,180 per enployee and wil be paid on February 3 . 31E. Adjust the prepaid asset accounts (for rent and insurance) as needed, C4-6 (Algo) Part 6 Required: 6-a. Prepare an income statement. 6-b. Prepare the statement of retained earnings. 6-c. Prepare the balance sheet