Question

so these t-accounts

Two employees have been hired, at a monthly salary of $2,100 each. The following transactions occurred during January of the current year. NNNNNN $4,200 is paid for 12 months' Insurance starting January 1. (Record as an asset.) 53,600 is paid for 12 months of rent beginning January 1. (Record as an asset.) FDI borrows $30,000 cash from 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 $19,200. Stockholders contribute $8,000 of additional cash to FDI for its common stock. Additional supplies costing $1,400 are purchased on account and received. $800 of accounts receivable arising from last year's December sales are collected. $5ee of accounts payable from December of last year are paid. Performed services for customers on account. Sent invoices totaling $11,600. $7,400 of services are performed for customers who paid immediately in cash. $2,100 of salaries are paid for the first half of the month. FDI receives $3,700 cash from a customer for an advance order for services to be provided later in January and in February $3,900 is collected from customers on account (see January 9 transaction). 10 16 20 25 Ch. January Additional information for adjusting entries: 31a. A $1,100 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 $260. 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. Yearly interest is determined by multiplying the amount borrowed by the annual interest rate (expressed as 0.04). 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. Salaries earned by employees for the period from Janary 16-31 are $1,050 per employee and will be paid on February 3. Adjust the prepaid asset accounts for rent and insurance) as needed.

Answer 1

Adjusting entries:

Date	Account Titles	Debit	Credit
Jan 31		$	$
a.	Utilities Expense	1,100
	Accounts Payable		1,100
b.	Supplies Expense	1,790
	Supplies		1,790
c.	Deferred Revenue ( $ 3,700 x 60 % )	2,220
	Service Revenue		2,220
d.	Interest expense ( $ 30,000 x 4 % x 1/12 )	100
	Interest Payable		100
e.	Depreciation Expense { $ 19,200 / ( 4 x 12 ) }	400
	Accumulated Depreciation		400
f.	Salaries and Wages Expense	2,100
	Salaries and Wages Payable		2,100
g.	Insurance Expense	350
	Prepaid Insurance		350
h.	Rent Expense	300
	Prepaid Rent		300

Fast Deliveries Inc. Adjusted Trial Balance January 31
Account Titles	Debit	Credit
	$	$
Cash	36,100
Accounts Receivable	7,720
Supplies	260
Prepaid Insurance	3,850
Prepaid Rent	3,300
Equipment	19,200
Accumulated Depreciation		400
Accounts Payable		2,700
Deferred Revenue		1,480
Salaries and Wages Payable		2,100
Notes Payable		30,000
Interest Payable		100
Common Stock		19,830
Retained Earnings		840
Service Revenue		21,220
Salaries and Wages Expense	4,200
Supplies Expense	1,790
Utilities Expense	1,100
Depreciation Expense	400
Insurance Expense	350
Rent Expense	300
Interest Expense	100
Totals	$ 78,670	$ 78,670