Required Information C4-6 Recording/Posting Statements-Requires 2, LO 4-4] Transactions and Adjustments, and Preparing Trial Balances and...

       

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Required Information C4-6 Recording/Posting Statements-Requires 2, LO 4-4] Transactions and Adjustments, and Preparing Trial Balances and Financial Calculating Depreciation and Interest (Chapters 2, 3, and 4) [LO 2-3, LO 3-3, LO 4- Fast Deliveries, 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. FAST DELIVERIES, INC. Balance Sheet at January 1 Liabilities: Assets: Cash $11,700 $ 800 Accounts Payable Stockholders' Equity: Accounts Receivable 620 Supplies 410 Common Stock Retained Earnings 11,450 480 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. Ch. January 1 2 $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 2 2 3 FDI borrows $26,400 cash from First State Bank at 5% annual interest; this note is payable in two years. 4 S 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 500e are purchased on account and received. 7 $8ee of accounts receivable arising from last year's December sales are collected. $700 of accounts payable from December of last year are paid. 8 2 Performed services for customers on account. Sent invoices totaling $11,700. 10 $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. 233337227 Ch. January 1 $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 5% annual interest; this note is payable in two years. 53 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. $8ee of accounts receivable arising from last year's December sales are collected. $700 of accounts payable from December of last year are paid. Performed services for customers on account. Sent invoices totaling $11,700. $7,700 of services are performed for customers who paid immediately in cash. 16 $2,660 of salaries are paid for the first half of the month. 10 3 3 20 FDI receives $3,900 cash from a customer for an advance order for services to be provided later in January and in February. 3 25 $3,600 is collected from customers on account (see January 9 transaction). Ch. Additional information for adjusting entries: January 31a. 4 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. 4 31b. 31c. As of January 31, FDI had completed be% of the deliveries for the customer who paid in advance on January 28. 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 0.05). For convenience, calculate January interest as one-twelfth of the annual interest. 310. 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 persod from January 16-31 are $1,330 per employee and will be paid on February 3. 31g. Adjust the prepaid asset accounts (for rent and Ansurance) as needed. 7222 2 wwwwNNNNN 2 2 2 2 3 3 4 4 4 4 4 5555*vas 6 7 Required information Req ZA Req 28 Set up T-accounts for the accounts on the trial balance. Enter beginning balances and post the transactions January 1-2 entries of January 31. Cash Accounts Receivable Beg. Bal 11,700 620 Beg Bal (0) 28,400 6,000 (1) 11.700 (6) 8,000 3,600 (2) (7) 800 19.200 (4) (20) 3,900 700 (8) (25) 3,600 2.600 (16) End. Bal 22.240 End. Bal 7,920 Prepaid Insurance Beg. Bal Beg Bal (8) CO 6.000 End Bal End Bal 6.000 Supplies 410 900 1.310 800 (7) 3.600 (25) Required information Beg. Bal. (2) End. Bal. Beg Bal End. Bal Beg. Bal End Bal Beg Bal End Bal Prepaid Rent 3.600 3.600 Accumulated Depreciation Deferred Revenue Interest Payable 3.600 (25) 3.800 Beg. Bal End. Bal Beg Bal End, Bal Beg. Bal End Ball Beg Bal End Ba Equipment 19.200 19,200 Accounts Payable Notes Payable (long-term) 28.400 (3) 28.400 Salaries and Wages Payable Required information Beg. Bal. End. Bal. Beg. Bal End. Bal. Beg. Bal End. Bal Beg Bal Interest Payable Common Stock Service Revenue Utilities Expense 8.000 (5) 8,000 11.700 (0) 7.700 (10) 19.400 Beg. Bal End. Bal Beg Bal End. Bal Beg Bal (16) End Bal Beg Bal Salaries and Wages Payable Retained Earnings Salaries and Wages Expense 2.000 2,660 Supplies Expenses es Required information Beg. Bal End. Bal Beg. Bal End. Bal. Beg. Bal End, Bal Utilities Expense Interest Expense Rent Expense 2018/9/11 Beg. Bal End. Bal Beg Bal End. Bal. Beg Bal End. Bal Supplies Expenses Insurance Expenses Depreciation Expense Required information P KRONOMŲ REMY Unadjusted Trial Balance At January 31 Account Titles Cash Accounts Receivable Supplies Prepaid Insurance Prepaid Rent Equipment Accumulated Depreciation Accounts Payable Deferred Revenue Notes Payable (long-term) Salaries and Wages Payable Interest Payable Common Stock Retained Earnings Service Revenue Salaries and Wages Expense Supplies Expenses Depreciation Expense Interest Expense Totals Debit 11.700 620 410 12 730 S Credit Required Information C4-6 Recording/Posting Statements-Requires 2, LO 4-4] Transactions and Adjustments, and Preparing Trial Balances and Financial Calculating Depreciation and Interest (Chapters 2, 3, and 4) [LO 2-3, LO 3-3, LO 4- Fast Deliveries, 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. FAST DELIVERIES, INC. Balance Sheet at January 1 Liabilities: Assets: Cash $11,700 $ 800 Accounts Payable Stockholders' Equity: Accounts Receivable 620 Supplies 410 Common Stock Retained Earnings 11,450 480 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. Ch. January 1 2 $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 2 2 3 FDI borrows $26,400 cash from First State Bank at 5% annual interest; this note is payable in two years. 4 S 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 500e are purchased on account and received. 7 $8ee of accounts receivable arising from last year's December sales are collected. $700 of accounts payable from December of last year are paid. 8 2 Performed services for customers on account. Sent invoices totaling $11,700. 10 $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. 233337227 Ch. January 1 $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 5% annual interest; this note is payable in two years. 53 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. $8ee of accounts receivable arising from last year's December sales are collected. $700 of accounts payable from December of last year are paid. Performed services for customers on account. Sent invoices totaling $11,700. $7,700 of services are performed for customers who paid immediately in cash. 16 $2,660 of salaries are paid for the first half of the month. 10 3 3 20 FDI receives $3,900 cash from a customer for an advance order for services to be provided later in January and in February. 3 25 $3,600 is collected from customers on account (see January 9 transaction). Ch. Additional information for adjusting entries: January 31a. 4 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. 4 31b. 31c. As of January 31, FDI had completed be% of the deliveries for the customer who paid in advance on January 28. 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 0.05). For convenience, calculate January interest as one-twelfth of the annual interest. 310. 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 persod from January 16-31 are $1,330 per employee and will be paid on February 3. 31g. Adjust the prepaid asset accounts (for rent and Ansurance) as needed. 7222 2 wwwwNNNNN 2 2 2 2 3 3 4 4 4 4 4 5555*vas 6 7 Required information Req ZA Req 28 Set up T-accounts for the accounts on the trial balance. Enter beginning balances and post the transactions January 1-2 entries of January 31. Cash Accounts Receivable Beg. Bal 11,700 620 Beg Bal (0) 28,400 6,000 (1) 11.700 (6) 8,000 3,600 (2) (7) 800 19.200 (4) (20) 3,900 700 (8) (25) 3,600 2.600 (16) End. Bal 22.240 End. Bal 7,920 Prepaid Insurance Beg. Bal Beg Bal (8) CO 6.000 End Bal End Bal 6.000 Supplies 410 900 1.310 800 (7) 3.600 (25) Required information Beg. Bal. (2) End. Bal. Beg Bal End. Bal Beg. Bal End Bal Beg Bal End Bal Prepaid Rent 3.600 3.600 Accumulated Depreciation Deferred Revenue Interest Payable 3.600 (25) 3.800 Beg. Bal End. Bal Beg Bal End, Bal Beg. Bal End Ball Beg Bal End Ba Equipment 19.200 19,200 Accounts Payable Notes Payable (long-term) 28.400 (3) 28.400 Salaries and Wages Payable Required information Beg. Bal. End. Bal. Beg. Bal End. Bal. Beg. Bal End. Bal Beg Bal Interest Payable Common Stock Service Revenue Utilities Expense 8.000 (5) 8,000 11.700 (0) 7.700 (10) 19.400 Beg. Bal End. Bal Beg Bal End. Bal Beg Bal (16) End Bal Beg Bal Salaries and Wages Payable Retained Earnings Salaries and Wages Expense 2.000 2,660 Supplies Expenses es Required information Beg. Bal End. Bal Beg. Bal End. Bal. Beg. Bal End, Bal Utilities Expense Interest Expense Rent Expense 2018/9/11 Beg. Bal End. Bal Beg Bal End. Bal. Beg Bal End. Bal Supplies Expenses Insurance Expenses Depreciation Expense Required information P KRONOMŲ REMY Unadjusted Trial Balance At January 31 Account Titles Cash Accounts Receivable Supplies Prepaid Insurance Prepaid Rent Equipment Accumulated Depreciation Accounts Payable Deferred Revenue Notes Payable (long-term) Salaries and Wages Payable Interest Payable Common Stock Retained Earnings Service Revenue Salaries and Wages Expense Supplies Expenses Depreciation Expense Interest Expense Totals Debit 11.700 620 410 12 730 S Credit

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Fast Deliveries Inc Journal entries Date Account 1Jan Prepai... View the full answer