[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 $ 11,700 Accounts Receivable. Supplies 620 410 Accounts Payable Stockholders' Equity: Common Stock $ 800 11,450 480 Retained Earnings Total Assets $ 12,730 Total Liabilities and Stockholders' Equity $ 12,730 Two employees have been hired, at a monthly salary of $2,660 each. The following transactions occurred during January of the current year. January $6,000 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.) 2 3 FDI borrows $26,400 cash from First State Bank at 53 annual interest; this note ig payable in two years. 5 A delivery van is purchased using cash. Including tax, the total cost was $19,200. Stockholders contribute $8,000 of additional cash to FDI for its common stock. Additional supplies costing $900 are purchased on account and received. 6 7 $800 of accounts receivable arising from last year's December sales are collected. $700 of accounts payable from December of last year are paid. 8 9 10 Performed services for customers on account. Sent invoices totaling $11,700. $7,700 of services are performed for customers who paid immediately in cash. $2,660 of salaries are paid for the first half of the month. 16 20 FDI receives $3,900 cash from a customer for an advance order for services to be provided later in January and in February. 25 $3,600 is collected from customers on account (see January 9 transaction). Additional information for adjusting entries: January 31a. 31b. 31c. A $900 bill arrives for January utility services. Payment is due February 15. Supplies on hand on January 31 are counted and determined to have cost $240. As of January 31, FDI had completed 60% of the deliveries for the customer who paid in advance on January 20. 31d. 31e. 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 0.05). 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. 31f. Salaries earned by employees for the period from January 16 to 31 are $1,330 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 is required for a transaction/event, select "No Journal Entry Required" In the first account fleld.) View transaction list X Record the adjusting entry for receipt of a $900 bill for January utility services. Payment is due February 15. 2 Record the adjusting entry for supplies on hand on January 31 that are counted and determined to have cost $240. Record the adjusting entry for FDI's completion by January 31 of 60% of the deliveries for the customer who paid in advance on January 20. 4 Record the adjusting entry for the accrual of one month of Interest on the bank loan. 5 Record the adjusting entry for depreciation for the month lble of the Note = journal entry has been entered Record entry Clear entry services. Credit 900 View general Journal View transaction list Record the adjusting entry for the accrual or one moncn of interest on the bank loan. 5 Record the adjusting entry for depreciation for the month of January, equal to one-twelfth of the annual depreciation expense. 6 Record the adjusting entry for salaries earned by employees for the period from January 16-31, which are $1,330 per employee and will be paid on February 3. 7 Record the adjusting entry to adjust the prepaid asset accounts for insurance as needed. 8 Record the adjusting entry to adjust the prepaid asset accounts for rent as needed. Note: = journal entry has been entered Record entry Clear entry