Required Informetlon Fast Deliverles, Inc. (FDI), was organized In December last year and had lmited activity last year. The resulting balance sheet at the beginning of the current year Is provided below: FAST DELIVERIES, INC Balance Sheet at January 1 Assets Liabilities Cash Accounts Receivable Supplies $11,480 980 358 Accounts Payable $ 38e Stockholders' Equity: Common Stock 11,248 1,118 $12,658 Retained Earnings Total Assets $12,658 Total Liabilities and Stockholders' Equity Two employees have been hlred, at a monthly salary of $2,040 each. The following transactions occurred during January of the current year anuary $5,780 is paid for 12 months' insurance starting January 1 (Record as an asset. $4,880 is paid for 12 months of rent beginning January 1. (Record as an asset.) FDI borrows $27,600 cash from First State Bank at 4% annual interest; this note is payable in two years A delivery van is purchased using cash. Including tax, the total cost was $24,88 Stockholders contribute $5,ee8 of additional cash to FDI for its common stock Additional supplies costing $98e are purchased on account and received $880 of accounts receivable arising from last year's December sales are collected $68e of accounts payable from December of last year are paid Performed services for customers on account. Sent invoices totaling $18,18e $8,880 of services are performed for customers who paid immediately in cash $2,848 of salaries are paid for the first half of the month FDI receives $4,888 cash from a customer for an advance order for services to be provided later in January and in February $4,188 is collected from customers on account (see January 9 transaction) 2 18 16 25 Ch. January Additional information for adjusting entries: 31a 31b. 31c A $880 bill arrives for January utility services. Payment is due February 15 Supplies on hand on January 31 are counted and determined to have cost $288 As of January 31, FDI had completed 60% of the deliveries for the customer who paid in advance on January 28 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 8.84) For convenience, calculate January interest as one-twelfth of the annual interest 31d. 31e Assume the van will be used for 4 years, after which it wil1 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 16-31 are $1,828 per employee and will be paid on February 3 Adjust the prepaid asset accounts (for rent and insurance) as needed 31f. 31g. -a. Prepare an Income statement. -b. Prepare the statement of retalned earnings. -c. Prepare the balance sheet