Required information [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: FAST DELIVERIES, INCORPORATED Balance Sheet at January 1 Liabilities: Assets: Cash $ 10,500 Accounts Receivable Supplies 840 500 Total Assets Accounts Payable Stockholders' Equity: Common Stock $ 400 11,130 310 Retained Earnings $ 11,840 Total Liabilities and Stockholders' Equity $ 11,840 Two employees have been hired, at a monthly salary of $2,180 each. The following transactions occurred during January of the current year. January 2 3 5 6 7 8 9 10 16 20 25 January 31a. 31b. 31c. 31d. 31e. 31f. 31g. $3,900 is paid for 12 months' insurance starting January 1. (Record as an asset.) $4,800 is paid for 12 months of rent beginning January 1. (Record as an asset.) FDI borrows $32,400 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 $19,200. Stockholders contribute $4,000 of additional cash to FDI for its common stock. Additional supplies costing $1,100 are purchased on account and received. $400 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 $11,800. $7,900 of services are performed for customers who paid immediately in cash. $2,180 of salaries are paid for the first half of the month. FDI receives $4,000 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). Additional information for adjusting entries: A $1,200 bill arrives for January utility services. Payment is due February 15. Supplies on hand on January 31 are counted and determined to have cost $300. As of January 31, FDI 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 0.06). 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 January, equal to one-twelfth of the annual depreciation expense. Salaries earned by employees for the period from January 16 to 31 are $1,090 per employee and will be paid on February 3. Adjust the prepaid asset accounts (for rent and insurance) as needed. Taccounts. Set up T-accounts for the accounts on the trial balance. Enter beginning balances and post the transactions from January 1-25. Then post the adjusting journal entries from January 31. (Do not round Intermediate calculations.) Deb Beginning Balance Ending Balance Debit Beginning Balance Ending Balance Accounts Receivable Crodit Debit Credit Beginning Balance Ending Balance Supplies Prepaid Insurance Credit Debit Credit Beginning Balance Ending Balance Prepaid Rent Vehicles Debit Credit Dubit Credit Beginning Balance Bering Balance Ending Balance Ending Balance Accumulated Depreciation Accounts Payable Debit Credit Debit Credit Beginning Balance Bepino Balance Ending Balance Eg Balance Deferred Revenue Notes Payable (long-term)) Debit Credit Debit Credit Beginning Balarco Begiching Balance Ending Balance Interest Payable Salaries and Wages Payable Debit Credit Debit Credit Bepincing Basic Begtied Balardo Ending Balan Common Stock Retained Eamings Debit Credit Debit Credit Begrrira Balance Bagering Balance Service Revenue Salaries and Wages Expense Debit Credit Debit Credit Beginning Balance Beginning Balance Ending Balance Ending Balance Utilities Expense Supplies Expenses Debit Credit Debit Credit Beginning Balance Beginning Balance Ending Balance Ending Balance Interest Expense Insurance Expenses Debit Credit Debit Credit Beginning Balance Beginning Balance Ending Balance Ending Balance Rent Expense Depreciation Expense Debit Credit Debit Credit Beginning Balance Beginning Balance Ending Balance Ending Balance Required: 3. Prepare an unadjusted trial balance at January 31. FAST DELIVERIES, INCORPORATED Account Titles Unadjusted Trial Balance Cash Accounts Receivable Supplies Prepaid Insurance Prepaid Rent Vehicles Accumulated Depreciation Accounts Payable Deferred Revenue Notes Payable (long-term) Salaries and Wages Payable Interest Payable Common Stock Retained Earnings Service Revenue Salaries and Wages Expense Supplies Expenses Depreciation Expense Interest Expense Totals Debit Credit 4. Record all adjusting journal entries needed at January 31. Ignore income taxes. (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1 2 3 4 5 G 7 Record the adjusting entry for receipt of a $1,200 bill for January utility services. Payment is due February 15. Note: Enter debits before credits. Transaction (a) General Journal Debit Credit Record entry Clear entry View ganaral journal >