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. $ 700 Assets: Cash Accounts Receivable Supplies $12,600 600 720 FAST DELIVERIES, INC. Balance Sheet at January 1 Liabilities: Accounts Payable Stockholders' Equity: Common Stock Retained Earnings Total Liabilities and Stockholders' Equity 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. Ch. January 1 2 3 56,000 is paid for 12 months insurance starting Danuary 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 6 WWW.NNNNN 8 9 10 16 20 in two years. A delivery van is purchased using cash. Including tax, the total cost was $28,800. Stockholders contribute $4,800 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. $2,968 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). 25 ch January 31a. 31b 310 310. Additional information for adjusting entries: A $1,100 bill arrives for January utility services. Payment is due February 15, Supplies on hand on January 31 are counted and determined to have cost $280. As of January 31, FOI had completed 60% of the deliveries for the customer who paid in advance on January 20. 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 8.05) For convenience, calculate January Interest as one-twelfth of the annual interest 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 Banuary equal to one-twelfth of the annual depreciation expense. Salaries earned by employees for the period from January 16-31 are 51.430 Decemployee and WR be paid on FebruaIBH adiusite the leadilacet adcountinent and instancias needed 31 317 31 -a. Post the adjusting journal entries from part 3. set up T-accounts for the accounts on the trial balance. -b. Post the adjusting entries from part 3 and prepare an adjusted trial balance. Complete this question by entering your answers in the tabs below. Req 4A Req 4B Post the adjusting journal entries from part 3, set up T-accounts for the accounts on the trial balance. (Do not rour calculations.) Cash Accounts Receivable Beg Bal Beg Bal End Ball End. Bal 34 of 5 End Bal End. Bal. Prepaid Rent Beg Bal Equipment Beg. Bal. End. Bal. End. Bal. Print ste en Accumulated Depreciation Accounts Payable Beg Bal. Beg Bal. End. Bal End. Bal Deferred Revenue Notes Payable (long-term) Beg. Bal Beg Bal Notes Payable (long-term) Deferred Revenue Beg. Bal. Beg Bal End. Bal. End Bal Salaries and Wages Payable Interest Payable Beg. Bal. Beg Bal End. Bal End Bal Retained Earnings Common Stock Beg Bal Beg Bal End Bal End Bal Service Revenue Salaries and Wages Expense Beg Bal. Beg. Bal. End. Bal End. Bal. Utilities Expense Supplies Expenses Beg Bal Beg. Bal End. Bal End Bal Interest Expense Insurance Expenses Beg Bal Beg Bal AST DELIVERIES 6 Saved 1 1 Required information Interest Expense Insurance Expenses Beg. Bal. Beg. Bal End. Bal End. Bal Rent Expense Depreciation Expense Beg Ball Beg Bal End Bal End Bal Req4B > Next Required information Post the adjusting entries from part 3 and prepare an adjusted trial balance. (Do not round intermediate calculations.) FAST DELIVERIES, INC. Adjusted Trial Balance Debit Credit Account Titles Cash Accounts Receivable Supplies Prepaid Rent Prepaid Insurance Equipment Accumulated Depreciation Accounts Payable Deferred Revenue Salaries and Wages Payable Interest Payable Notes Payable (long-term) Common Stock Interest Payable Notes Payable (long-term) Common Stock Retained Earnings Service Revenue Salaries and Wages Expense Utilities Expense Supplies Expenses Depreciation Expense Insurance Expense Rent Expense Interest Expense Totals ( Req 4A