T-balance

$ 400 Assets: Cash Accounts Receivable Supplies $10,500 880 750 FAST DELIVERIES, INC. Balance Sheet at January 1 Liabilities: Accounts Payable Stockholders' Equity: Common Stock Retained Earnings Total Liabilities and Stockholders' Equity 11,519 229 $12,130 Total Assets $12,130 Two employees have been hired, at a monthly salary of $2,540 each. The following transactions occurred during January of the current year ch. 2 2 2 January 1 2 3 NNNN 4 5 6 2 8 9 10 16 20 $5,100 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.) FOT borrows $34,800 cash fron 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 $24,000. Stockholders contribute $8,000 of additional cash to FDI for its common stock. Additional supplies costing $1,500 are purchased on account and received. $400 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 $11,800. 57,600 of services are performed for customers who paid immediately in cash. $2,540 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 $4,889 is collected from customers on account (see January 9 transaction). 3 25 25 $4,800 is collected from customers on account (see January 9 transaction). Ch. 4 4 4 4 January Additional information for adjusting entries: 31a. A $900 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 $210. 31c. 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 0.84). 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, 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 $1,270 per employee and will be paid on February 3. 318 Adjust the prepaid asset accounts (for rent and insurance) as needed. 4 4 C4.6 Part 4 4-0. 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 Cash Accounts Receivable Beg. Bal Beg. Bal End. Bal End. Bal. Supplies Prepaid Insurance Beg. Bal. Beg. Bal End. Bal End. Bal Prepaid Rent Equipment Bea. Bal Bea. 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 0 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. Bal Utilities Expense Supplies Expenses Beg Ball Beg. Bal