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Required information [The following information applies to the questions displayed below] Fast Deliveries, Incorporated (FDH), was organized in December last year and had limited activity
Required information [The following information applies to the questions displayed below] Fast Deliveries, Incorporated (FDH), 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: $ 480 Assets: Cash Accounts Receivable Supplies FAST DELIVERIES, INCORPORATED Balance Sheet at January 1 Liabilities: $ 11,000 Accounts Payable 820 Stockholders' Equity 460 Connon Stock Retained Earnings $ 12,288 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 January 1 2 3 4 5 6 7 8 9 10 16 2e $3,682 is paid for 12 months' insurance starting January 1. (Record as an asset.) $3,682 is paid for 12 months of rent beginning January 1. (Record as an asset.) FDI borrows $33,688 cash from First State Bank at 6x annual interest; this note is payable in two years. A delivery van is purchased using cash. Including tax, the total cost was $24.cee. Stockholders contribute $8,eee of additional cash to FDI for its common stock. s Additional supplies costing $1,5ee are purchased on account and received. $8ee of accounts receivable arising from last year's December sales are collected. $3ee of accounts payable from December of last year are paid. Performed services for customers on account. Sent invoices totaling $11,280. $7,189 of services are performed for customers who paid immediately in cash. $2,989 of salaries are paid for the first half of the month. FDI receives $3,688 cash from a customer for an advance order for services to be provided later in January and in February. $4,182 is collected from customers on account (see January 9 transaction). 25 January Additional information for adjusting entries: 31a. A $1,eee 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 $298. 31c. As of January 31, FDI had completed 6 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. 311 Salaries earned by employees for the period from January 16 to 31 are $1,458 per employee and will be paid on February 3. 31g. Adjust the prepaid asset accounts (for rent and insurance) as needed. Required: 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 at Journal entry worksheet Record the adjusting entry for receipt of a $1,000 bill for January utility services. Payment is due February 15 Note: Enter debits before credits Transaction General Journal Debit Credit a) Record entry Clear entry View general Journal
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