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 300 FAST DELIVERIES, INC. Balance Sheet at January 1 Liabilities: $12,500 Accounts Payable 700 Stockholders' Equity: 630 Common Stock Retained Earnings $13,830 Total Liabilities and Stockholders' Equity 11, 770 1780 $13, 830 Total Assets Two employees have been hired, at a monthly salary of $2,300 each. The following transactions occurred during January of the current year W www WNNNNNNNN $5,100 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.) FDI borrows $36,000 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 $7,000 of additional cash to FDI for its common stock. Additional supplies costing $1,100 are purchased on account and received. $600 of accounts receivable arising from last year's December sales are collected $400 of accounts payable from December of last year are paid. Performed services for customers on account. Sent invoices totaling $10,900. $7,500 of services are performed for customers who paid immediately in cash. $2,300 of salaries are paid for the first half of the month. FDI receives $3,800 cash from a customer for an advance order for services to be provided later in January and in February $4,800 is collected from customers on account (see January 9 transaction). 20 25 Ch. January Additional information for adjusting entries: 31a. A $1,400 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 $270. 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. 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 $1,150 per employee and will be paid on February 3. 319. Adjust the prepaid asset accounts (for rent and insurance) as needed. 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 4A Req 48 Post the adjusting journal entries from part 3, set up T-accounts for the accounts on the trial balance. (Do not round intern calculations.) Cash Accounts Receivable Beg. Bal. I Beg. Bal. End. Bal End. Bal. Supplies Prepaid Insurance Beg. Bal. Beg. Bal. End. Bal. End. Bal. Prepaid Rent Equipment Beg. Bal. 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. End. Bal End. Bal Interest Payable Salaries and Wages Payable Beg. Bal. Beg. 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. Ball Utilities Expense Supplies Expenses Beg. Bal. Beg. Bal. End. Bal. End. Bal Interest Expense Insurance Expenses Beg. Bal. Beg. Bal. End. Bal. End. Bal. Rent Expense Depreciation Expense Beg. Bal. Beg. Bal. Post the adjusting entries from part 3 and prepare an adjusted trial balance. (Do not round intermediate calculations.) Credit FAST DELIVERIES, INC. Adjusted Trial Balance At January 31 Account Titles Debit 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) 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 0 $ 0 C4-6 Part 5 5-a. Prepare an income statement. 5-b. Prepare the statement of retained earnings. 5-c. Prepare the balance sheet. Complete this question by entering your answe Freq 5A Req 5B Req 5C Prepare an income statement. FAST DELIVERIES, INC. Income Statement At January 31 FAST DELIVERIES, INC. Income Statement At January 31 FAST DELIVERIES, INC. Statement of Retained Earnings At January 31 Retained earnings, beginning of period Retained earnings, end of period HAST DELIVERIES, INC. Balance Sheet At January 31 Assets Liabilities