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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,

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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: $ 400 Assets: Cash Accounts Receivable Supplies TAST DELIVERIES, INC. Balance Sheet at January 1 Liabilities: $11,000 Accounts Payable 820 Stockholders' Equity! 460 Common Stock Retained Earnings $12,280 Total Liabilities and Stockholders' Equity 11,150 730 $12,280 Total Assets Two employees have been hired, at a monthly salary of $2,900 each. The following transactions occurred during January of the current year. Ch. 2 2. 2 January 1 2 3 2 2 2 2 2 3 4 5 6 7 8 9 10 16 20 $3,600 is paid for 12 months' insurance starting January 1. (Record as an asset.) $3,600 is paid for 12 months of rent beginning January 1. (Record as an asset.) TDI borrow $33,600 cash from First State Bank at 6 annual interest this note is payable in two years. A delivery van is purchased using cash. Including tax, the total cost was $24,000. Stockholders contribute $8,000 of additional cash to TDI for its common atook. Additional supplies coating $1,500 are purchased on account and received $800 of accounts receivable arising from last year's December sales are collected. $500 of accounts payable from December of last year are paid. Performed services for customers on account. Sent invoices totaling $11,200. $7,100 of services are performed for customers who paid immediately in cash. $2,900 of salaries are paid for the first half of the month. PDI receives $3,600 cash from a customer for an advance order for services to be provided later in January and in February. $4,100 is collected from customers on account (see January 9 transaction). 3 3 3 25 NESTA 10 16 20 $7,100 of services are performed for customers who paid immediately in cash. $2,900 of salaries are paid for the first half of the month. FDI receives $3,600 cash from a customer for an advance order for services to be provided later in January and in February. $4,100 is collected from customers on account (Bee January 9 transaction). 3 25 ch. 4 4 4 4 January Additional information for adjusting entries: 3la. A $1,000 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. 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 0.06). For convenience, calculate January interest as one-twelfth of the annual interest. 3le. Assume the van will be used for 4 years, after which it will have no value. Thus, 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. 311. salaries earned by employees for the period from January 16-31 are $1,450 per employee and will be paid on February 3. 31g. Adjust the prepaid asset accounts (for rent and insurance) as needed. 4 4 4 C4-6 Part 4 4-a. Post the adjusting journal entries from part 3, set up T-accounts for the accounts on the trial balance. 4-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 Reg 4B C4-6 Part 4 4-a. Post the adjusting Journal entries from part 3, set up T-accounts for the accounts on the trial balance, 4-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 Reg 43 Post the adjusting journal entries from part 3, set up T-accounts for the accounts on the trial balance. (Do not round intermediate calculations.) Cash Accounts Receivable Bog. Bal Beg Bal es End. Bol End. Bal Supplies Prepaid Insurance + Bog. Bal Beg Bal End. Bal End. Bol Prepaid Rent Equipment Required information Equipment Prepaid Rent Beg. Ball Beg. Bal End, Bal End, Bal Accumulated Depreciation Accounts Payable Beg. Bal Beg Bal End. Bal. End. Bal. Deferred Revenue Notes Payable (long-term) Beg Bal Beg. Bal (c) 0 End. Bal End. Bal. Interest Payable Salaries and Wages Payable Beg. Bal Beg Bal End Bal End, Bal Common Stock Retained Earnings Required information beg. a. bu, bal End. Bal End, Bal Common Stock Retained Earnings 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. BAI End. Bal Interest Expense Insurance Expenses DO S F DU $ 2 3 4 % 5 & 7 6 8 9 W E R T Y Required information End. Bal. End. Bal. Interest Expense Insurance Expenses Beg. Bal. Beg. Bal End. Bal. End. Bal Rent Expense Depreciation Expenso Bog. Bal Beg, Bal End. Bal End. Bai. Req Req 4B > 319. employee and will be paid on February 3. Adjust the prepaid asset accounts (for rent and insurance) as needed. C4-6 Part 4 4-a. Post the adjusting journal entries from part 3, set up T-accounts for the accounts on the trial balance. 4-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. Reg 4 Reg 4 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 30 FS % & 2 3 $ 4

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