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Fast Deliveries, Incorporated (FDI), was organized in December last year and had limited activity last year. balance sheet at the beginning of the current year is provided below: FAST DELIVERIES, INCORPORATED Balance Sheet at January 1 Liabilities: Assets: Cash $ 11,100 760 Accounts Receivable. Supplies Accounts Payable Stockholders' Equity: Common Stock $ 400 11,650 430 620 Retained Earnings $ 12,480 Total Assets $ 12,480 Total Liabilities and Stockholders' Equity Two employees have been hired, at a monthly salary of $2,860 each. The following transactions occurred during January of the current year. January 1 2 $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.). FDI borrows $30,000 cash from First State Bank at 68 annual interest; this note is payable in two years. 3 5 A delivery van is purchased using cash. Including tax, the total cost was $28,800. Stockholders contribute $7,000 of additional cash to FDI for its common stock. Additional supplies costing $1,400 are purchased on account and received. 6 7 $500 of accounts receivable arising from last year's December sales are collected. $300 of accounts payable from December of last year are paid. 8 9 10 16 20 Performed services for customers on account. Sent invoices totaling $10,300. $7,200 of services are performed for customers who paid immediately in cash. $2,860 of salaries are paid for the first half of the month.. FDI receives $3,600 cash from a customer for an advance order for services to be provided later in January and in February. 25 $3,100 is collected from customers on account (see January 9 transaction). January Additional information for adjusting entries: 31a. 31b. 310. A $1,100 bill arrives for January utility services. Payment is due February 15. Supplies on hand on January 31 are counted and determined to have cost $210. 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 0.06). For

Fast Deliveries, Incorporated (FDI), was organized in December last year and had limited activity last year. balance sheet at the beginning of the current year is provided below: FAST DELIVERIES, INCORPORATED Balance Sheet at January 1 Liabilities: Assets: Cash $ 11,100 760 Accounts Receivable. Supplies Accounts Payable Stockholders' Equity: Common Stock $ 400 11,650 430 620 Retained Earnings $ 12,480 Total Assets $ 12,480 Total Liabilities and Stockholders' Equity Two employees have been hired, at a monthly salary of $2,860 each. The following transactions occurred during January of the current year. January 1 2 $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.). FDI borrows $30,000 cash from First State Bank at 68 annual interest; this note is payable in two years. 3 5 A delivery van is purchased using cash. Including tax, the total cost was $28,800. Stockholders contribute $7,000 of additional cash to FDI for its common stock. Additional supplies costing $1,400 are purchased on account and received. 6 7 $500 of accounts receivable arising from last year's December sales are collected. $300 of accounts payable from December of last year are paid. 8 9 10 16 20 Performed services for customers on account. Sent invoices totaling $10,300. $7,200 of services are performed for customers who paid immediately in cash. $2,860 of salaries are paid for the first half of the month.. FDI receives $3,600 cash from a customer for an advance order for services to be provided later in January and in February. 25 $3,100 is collected from customers on account (see January 9 transaction). January Additional information for adjusting entries: 31a. 31b. 310. A $1,100 bill arrives for January utility services. Payment is due February 15. Supplies on hand on January 31 are counted and determined to have cost $210. 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 0.06). For

Century 21 Accounting General Journal
Century 21 Accounting General Journal
11th Edition
ISBN:9781337680059
Author:Gilbertson
Publisher:Gilbertson
Chapter16: Financial Statements And Closing Entries For A Corporation
Section: Chapter Questions
Problem 2AP
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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: $ 400 Cash $ 11,100 760 Accounts Receivable. Supplies Accounts Payable: Stockholders Equity: Common Stock 620 11,650 430 Retained Earnings $ 12,480 Total Assets $ 12,480 Total Liabilities and Stockholders' Equity Two employees have been hired, at a monthly salary of $2,860 each. The following transactions occurred during January of the current year. January 1 $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.). 2 3 FDI borrows $30,000 cash from First State Bank at 6% annual interest; this note is payable in two years. 4 5 A delivery van is purchased using cash. Including tax, the total cost was $28,800. Stockholders contribute $7,000 of additional cash to FDI for its common stock. Additional supplies costing $1,400 are purchased on account and received. 6 7 $500 of accounts receivable arising from last year's December sales are collected. $300 of accounts payable from December of last year are paid. 8 9 10 Performed services for customers on account. Sent invoices totaling $10,300. $7,200 of services are performed for customers who paid immediately in cash. $2,860 of salaries are paid for the first half of the month. 16 20 FDI receives $3,600 cash from a customer for an advance order for services to be provided later in January and in February. 25 $3,100 is collected from customers on account (see January 9 transaction). Additional information for adjusting entries: January 31a. 31b. $1,100 bill arrives for January utility services. Payment is due February 15. Supplies on hand on January 31 are counted and determined to have cost $210. 310. 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. multiplying the amount borrowed by the annual Yearly interest is determined by. interest rate (expressed as 0.06). For bral fat of the soul into
Transcribed Image Text: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: $ 400 Cash $ 11,100 760 Accounts Receivable. Supplies Accounts Payable: Stockholders Equity: Common Stock 620 11,650 430 Retained Earnings $ 12,480 Total Assets $ 12,480 Total Liabilities and Stockholders' Equity Two employees have been hired, at a monthly salary of $2,860 each. The following transactions occurred during January of the current year. January 1 $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.). 2 3 FDI borrows $30,000 cash from First State Bank at 6% annual interest; this note is payable in two years. 4 5 A delivery van is purchased using cash. Including tax, the total cost was $28,800. Stockholders contribute $7,000 of additional cash to FDI for its common stock. Additional supplies costing $1,400 are purchased on account and received. 6 7 $500 of accounts receivable arising from last year's December sales are collected. $300 of accounts payable from December of last year are paid. 8 9 10 Performed services for customers on account. Sent invoices totaling $10,300. $7,200 of services are performed for customers who paid immediately in cash. $2,860 of salaries are paid for the first half of the month. 16 20 FDI receives $3,600 cash from a customer for an advance order for services to be provided later in January and in February. 25 $3,100 is collected from customers on account (see January 9 transaction). Additional information for adjusting entries: January 31a. 31b. $1,100 bill arrives for January utility services. Payment is due February 15. Supplies on hand on January 31 are counted and determined to have cost $210. 310. 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. multiplying the amount borrowed by the annual Yearly interest is determined by. interest rate (expressed as 0.06). For bral fat of the soul into
cuசவாளUT UAN ம AULNANONAM CHMANNY 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 period from January 16 to 31 are $1,430 per employee and will be paid on February 3. 31g. Adjust the prepaid asset accounts (for rent and insurance) as needed. Required: T accounts. Set up T-accounts for the accounts on the trial balance. Enter beginning balances and post the transactions from January 1-25. Then post the adjusting journal entries from January 31. (Do not round intermediate calculations.) Cash Accounts Receivable Debit Credit Debit Credit Beginning Balance Beginning Balance Ending Balance Ending Balance
Transcribed Image Text:cuசவாளUT UAN ம AULNANONAM CHMANNY 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 period from January 16 to 31 are $1,430 per employee and will be paid on February 3. 31g. Adjust the prepaid asset accounts (for rent and insurance) as needed. Required: T accounts. Set up T-accounts for the accounts on the trial balance. Enter beginning balances and post the transactions from January 1-25. Then post the adjusting journal entries from January 31. (Do not round intermediate calculations.) Cash Accounts Receivable Debit Credit Debit Credit Beginning Balance Beginning Balance Ending Balance Ending Balance
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