Fast Dellveries, Inc. (FDI), was organized in December last year and had limited activity last year....

 

  
 
 

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Fast Dellveries, Inc. (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: Assets Cash Accounts Receivable Supplies YAST DELIVERIES, INC. Balance Sheet at January1 Liabilities: Accounts Payable Stockholders Equity: Common Stock Retained tarnings 400 $10,500 880 750 11,510 220 Total Assets $12,130 Total labilities and Stockholders Equity $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. Januery $5,100 is paid for 12 months Insurance starting January 1. (Record as an asset.) $4, 800 is pald for 12 nonths of rent beginning January 1. (Record as an asset.) For borrows $34, 000 cash from First State Bank at 4A annual interesti this note is payable In two years. A delivery van is purchased using cash. Including tek the total cost was $24,000, Stockholders contribute $8,000 of additional cash to FOT for its common stock. FDI borrows $34,800 cash from First State Bank at 4% annual interest; this note is payable in two years. 3. 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 Decenber sales are collected. $500 of accounts payable from December of last year are paid. Performed services for custoners on account. Sent lnvoices totaling $11,800. $7,600 of services are performed for customers who paid imediately in cash. $2,540 of salaries are paid for the first half of the month. EDI receives $3,800 cash fros a customer for an advance order for services to be provided later in January and in February. $4,800 is collected from customers on account (see January 9 transaction). 2. in 10 16 20 25 Danuary AddStlonal infornation for adjusting entries 3la. 316, Ch. A $900 bill arrives for January utility services. Payment is dueFebruary 15. Supplies on hand on January 31 are counted and deternined to have cost $210. As of January 31, FOI had conpleted 6e of the deliveries for the custoner who pald 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 0.04). For convenience, calculate fanuary interest as one-twelfth of the annual interest. Assume the van will be used for 4 years, after which it wlll 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, rqual to one-twelfth of the annual depreciation expense. Salaries earned by enployees for the period fron January 16-31 are $1,270 per employee and will be pald on February 3. Adjust the prepaid asset accounts (for rent and Insurance) as needed. 4. 4. 31d. 314. 31g 3. Record all adjusting journal entries needed at January 31. (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 View journal entry worksheet No Date General Journal Debit Credit 1. (a) Uslities Expense Accounts Payable 2. (b) Supplies Expenses Supplies 3 (c) Deferred Revenue Service Revenue Interest Expense Interest Payable 4. (d) (c) Deferred Revenue Service Revenue 4. (d) Interest Expense Interest Payable Depreciation Expense Accumulated Depreciation 5. (e) Salaries and Wages Expense Salaries and Wages Payable (f) (g1) Insurance Expense Prepaid Insurance 8. (92) Rent Expense Prepaid Rent 7, Fast Dellveries, Inc. (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: Assets Cash Accounts Receivable Supplies YAST DELIVERIES, INC. Balance Sheet at January1 Liabilities: Accounts Payable Stockholders Equity: Common Stock Retained tarnings 400 $10,500 880 750 11,510 220 Total Assets $12,130 Total labilities and Stockholders Equity $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. Januery $5,100 is paid for 12 months Insurance starting January 1. (Record as an asset.) $4, 800 is pald for 12 nonths of rent beginning January 1. (Record as an asset.) For borrows $34, 000 cash from First State Bank at 4A annual interesti this note is payable In two years. A delivery van is purchased using cash. Including tek the total cost was $24,000, Stockholders contribute $8,000 of additional cash to FOT for its common stock. FDI borrows $34,800 cash from First State Bank at 4% annual interest; this note is payable in two years. 3. 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 Decenber sales are collected. $500 of accounts payable from December of last year are paid. Performed services for custoners on account. Sent lnvoices totaling $11,800. $7,600 of services are performed for customers who paid imediately in cash. $2,540 of salaries are paid for the first half of the month. EDI receives $3,800 cash fros a customer for an advance order for services to be provided later in January and in February. $4,800 is collected from customers on account (see January 9 transaction). 2. in 10 16 20 25 Danuary AddStlonal infornation for adjusting entries 3la. 316, Ch. A $900 bill arrives for January utility services. Payment is dueFebruary 15. Supplies on hand on January 31 are counted and deternined to have cost $210. As of January 31, FOI had conpleted 6e of the deliveries for the custoner who pald 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 0.04). For convenience, calculate fanuary interest as one-twelfth of the annual interest. Assume the van will be used for 4 years, after which it wlll 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, rqual to one-twelfth of the annual depreciation expense. Salaries earned by enployees for the period fron January 16-31 are $1,270 per employee and will be pald on February 3. Adjust the prepaid asset accounts (for rent and Insurance) as needed. 4. 4. 31d. 314. 31g 3. Record all adjusting journal entries needed at January 31. (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 View journal entry worksheet No Date General Journal Debit Credit 1. (a) Uslities Expense Accounts Payable 2. (b) Supplies Expenses Supplies 3 (c) Deferred Revenue Service Revenue Interest Expense Interest Payable 4. (d) (c) Deferred Revenue Service Revenue 4. (d) Interest Expense Interest Payable Depreciation Expense Accumulated Depreciation 5. (e) Salaries and Wages Expense Salaries and Wages Payable (f) (g1) Insurance Expense Prepaid Insurance 8. (92) Rent Expense Prepaid Rent 7, Fast Dellveries, Inc. (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: Assets Cash Accounts Receivable Supplies YAST DELIVERIES, INC. Balance Sheet at January1 Liabilities: Accounts Payable Stockholders Equity: Common Stock Retained tarnings 400 $10,500 880 750 11,510 220 Total Assets $12,130 Total labilities and Stockholders Equity $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. Januery $5,100 is paid for 12 months Insurance starting January 1. (Record as an asset.) $4, 800 is pald for 12 nonths of rent beginning January 1. (Record as an asset.) For borrows $34, 000 cash from First State Bank at 4A annual interesti this note is payable In two years. A delivery van is purchased using cash. Including tek the total cost was $24,000, Stockholders contribute $8,000 of additional cash to FOT for its common stock. FDI borrows $34,800 cash from First State Bank at 4% annual interest; this note is payable in two years. 3. 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 Decenber sales are collected. $500 of accounts payable from December of last year are paid. Performed services for custoners on account. Sent lnvoices totaling $11,800. $7,600 of services are performed for customers who paid imediately in cash. $2,540 of salaries are paid for the first half of the month. EDI receives $3,800 cash fros a customer for an advance order for services to be provided later in January and in February. $4,800 is collected from customers on account (see January 9 transaction). 2. in 10 16 20 25 Danuary AddStlonal infornation for adjusting entries 3la. 316, Ch. A $900 bill arrives for January utility services. Payment is dueFebruary 15. Supplies on hand on January 31 are counted and deternined to have cost $210. As of January 31, FOI had conpleted 6e of the deliveries for the custoner who pald 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 0.04). For convenience, calculate fanuary interest as one-twelfth of the annual interest. Assume the van will be used for 4 years, after which it wlll 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, rqual to one-twelfth of the annual depreciation expense. Salaries earned by enployees for the period fron January 16-31 are $1,270 per employee and will be pald on February 3. Adjust the prepaid asset accounts (for rent and Insurance) as needed. 4. 4. 31d. 314. 31g 3. Record all adjusting journal entries needed at January 31. (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 View journal entry worksheet No Date General Journal Debit Credit 1. (a) Uslities Expense Accounts Payable 2. (b) Supplies Expenses Supplies 3 (c) Deferred Revenue Service Revenue Interest Expense Interest Payable 4. (d) (c) Deferred Revenue Service Revenue 4. (d) Interest Expense Interest Payable Depreciation Expense Accumulated Depreciation 5. (e) Salaries and Wages Expense Salaries and Wages Payable (f) (g1) Insurance Expense Prepaid Insurance 8. (92) Rent Expense Prepaid Rent 7, Fast Dellveries, Inc. (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: Assets Cash Accounts Receivable Supplies YAST DELIVERIES, INC. Balance Sheet at January1 Liabilities: Accounts Payable Stockholders Equity: Common Stock Retained tarnings 400 $10,500 880 750 11,510 220 Total Assets $12,130 Total labilities and Stockholders Equity $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. Januery $5,100 is paid for 12 months Insurance starting January 1. (Record as an asset.) $4, 800 is pald for 12 nonths of rent beginning January 1. (Record as an asset.) For borrows $34, 000 cash from First State Bank at 4A annual interesti this note is payable In two years. A delivery van is purchased using cash. Including tek the total cost was $24,000, Stockholders contribute $8,000 of additional cash to FOT for its common stock. FDI borrows $34,800 cash from First State Bank at 4% annual interest; this note is payable in two years. 3. 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 Decenber sales are collected. $500 of accounts payable from December of last year are paid. Performed services for custoners on account. Sent lnvoices totaling $11,800. $7,600 of services are performed for customers who paid imediately in cash. $2,540 of salaries are paid for the first half of the month. EDI receives $3,800 cash fros a customer for an advance order for services to be provided later in January and in February. $4,800 is collected from customers on account (see January 9 transaction). 2. in 10 16 20 25 Danuary AddStlonal infornation for adjusting entries 3la. 316, Ch. A $900 bill arrives for January utility services. Payment is dueFebruary 15. Supplies on hand on January 31 are counted and deternined to have cost $210. As of January 31, FOI had conpleted 6e of the deliveries for the custoner who pald 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 0.04). For convenience, calculate fanuary interest as one-twelfth of the annual interest. Assume the van will be used for 4 years, after which it wlll 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, rqual to one-twelfth of the annual depreciation expense. Salaries earned by enployees for the period fron January 16-31 are $1,270 per employee and will be pald on February 3. Adjust the prepaid asset accounts (for rent and Insurance) as needed. 4. 4. 31d. 314. 31g 3. Record all adjusting journal entries needed at January 31. (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 View journal entry worksheet No Date General Journal Debit Credit 1. (a) Uslities Expense Accounts Payable 2. (b) Supplies Expenses Supplies 3 (c) Deferred Revenue Service Revenue Interest Expense Interest Payable 4. (d) (c) Deferred Revenue Service Revenue 4. (d) Interest Expense Interest Payable Depreciation Expense Accumulated Depreciation 5. (e) Salaries and Wages Expense Salaries and Wages Payable (f) (g1) Insurance Expense Prepaid Insurance 8. (92) Rent Expense Prepaid Rent 7, Fast Dellveries, Inc. (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: Assets Cash Accounts Receivable Supplies YAST DELIVERIES, INC. Balance Sheet at January1 Liabilities: Accounts Payable Stockholders Equity: Common Stock Retained tarnings 400 $10,500 880 750 11,510 220 Total Assets $12,130 Total labilities and Stockholders Equity $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. Januery $5,100 is paid for 12 months Insurance starting January 1. (Record as an asset.) $4, 800 is pald for 12 nonths of rent beginning January 1. (Record as an asset.) For borrows $34, 000 cash from First State Bank at 4A annual interesti this note is payable In two years. A delivery van is purchased using cash. Including tek the total cost was $24,000, Stockholders contribute $8,000 of additional cash to FOT for its common stock. FDI borrows $34,800 cash from First State Bank at 4% annual interest; this note is payable in two years. 3. 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 Decenber sales are collected. $500 of accounts payable from December of last year are paid. Performed services for custoners on account. Sent lnvoices totaling $11,800. $7,600 of services are performed for customers who paid imediately in cash. $2,540 of salaries are paid for the first half of the month. EDI receives $3,800 cash fros a customer for an advance order for services to be provided later in January and in February. $4,800 is collected from customers on account (see January 9 transaction). 2. in 10 16 20 25 Danuary AddStlonal infornation for adjusting entries 3la. 316, Ch. A $900 bill arrives for January utility services. Payment is dueFebruary 15. Supplies on hand on January 31 are counted and deternined to have cost $210. As of January 31, FOI had conpleted 6e of the deliveries for the custoner who pald 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 0.04). For convenience, calculate fanuary interest as one-twelfth of the annual interest. Assume the van will be used for 4 years, after which it wlll 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, rqual to one-twelfth of the annual depreciation expense. Salaries earned by enployees for the period fron January 16-31 are $1,270 per employee and will be pald on February 3. Adjust the prepaid asset accounts (for rent and Insurance) as needed. 4. 4. 31d. 314. 31g 3. Record all adjusting journal entries needed at January 31. (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 View journal entry worksheet No Date General Journal Debit Credit 1. (a) Uslities Expense Accounts Payable 2. (b) Supplies Expenses Supplies 3 (c) Deferred Revenue Service Revenue Interest Expense Interest Payable 4. (d) (c) Deferred Revenue Service Revenue 4. (d) Interest Expense Interest Payable Depreciation Expense Accumulated Depreciation 5. (e) Salaries and Wages Expense Salaries and Wages Payable (f) (g1) Insurance Expense Prepaid Insurance 8. (92) Rent Expense Prepaid Rent 7, Fast Dellveries, Inc. (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: Assets Cash Accounts Receivable Supplies YAST DELIVERIES, INC. Balance Sheet at January1 Liabilities: Accounts Payable Stockholders Equity: Common Stock Retained tarnings 400 $10,500 880 750 11,510 220 Total Assets $12,130 Total labilities and Stockholders Equity $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. Januery $5,100 is paid for 12 months Insurance starting January 1. (Record as an asset.) $4, 800 is pald for 12 nonths of rent beginning January 1. (Record as an asset.) For borrows $34, 000 cash from First State Bank at 4A annual interesti this note is payable In two years. A delivery van is purchased using cash. Including tek the total cost was $24,000, Stockholders contribute $8,000 of additional cash to FOT for its common stock. FDI borrows $34,800 cash from First State Bank at 4% annual interest; this note is payable in two years. 3. 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 Decenber sales are collected. $500 of accounts payable from December of last year are paid. Performed services for custoners on account. Sent lnvoices totaling $11,800. $7,600 of services are performed for customers who paid imediately in cash. $2,540 of salaries are paid for the first half of the month. EDI receives $3,800 cash fros a customer for an advance order for services to be provided later in January and in February. $4,800 is collected from customers on account (see January 9 transaction). 2. in 10 16 20 25 Danuary AddStlonal infornation for adjusting entries 3la. 316, Ch. A $900 bill arrives for January utility services. Payment is dueFebruary 15. Supplies on hand on January 31 are counted and deternined to have cost $210. As of January 31, FOI had conpleted 6e of the deliveries for the custoner who pald 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 0.04). For convenience, calculate fanuary interest as one-twelfth of the annual interest. Assume the van will be used for 4 years, after which it wlll 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, rqual to one-twelfth of the annual depreciation expense. Salaries earned by enployees for the period fron January 16-31 are $1,270 per employee and will be pald on February 3. Adjust the prepaid asset accounts (for rent and Insurance) as needed. 4. 4. 31d. 314. 31g 3. Record all adjusting journal entries needed at January 31. (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 View journal entry worksheet No Date General Journal Debit Credit 1. (a) Uslities Expense Accounts Payable 2. (b) Supplies Expenses Supplies 3 (c) Deferred Revenue Service Revenue Interest Expense Interest Payable 4. (d) (c) Deferred Revenue Service Revenue 4. (d) Interest Expense Interest Payable Depreciation Expense Accumulated Depreciation 5. (e) Salaries and Wages Expense Salaries and Wages Payable (f) (g1) Insurance Expense Prepaid Insurance 8. (92) Rent Expense Prepaid Rent 7,

Answer rating: 100% (QA)

Account Titles Debit Credit 31a Utilities Expense 900 Accounts Payable 900 31b Supplies Expense 20... View the full answer