Question

Required information C4-6 Recording/Posting Transactions and Adjustments, and Preparing Trial Balances and Financial Statements-Requires Calculating Depreciation and Interest (Chapters 2, 3, and 4) (LO 2-3, LO 3-3, LO 4- 2, LO 4-4) 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 Assets: Liabilities: Cash $12,600 Accounts Payable Accounts Receivable 600 Stockholders' Equity: Supplies 720 Common Stock 11,900 Retained Earnings 1,320 Total Assets $13,920 Total Liabilities and Stockholders' Equity $13,920 700 Two employees have been hired, at a monthly salary of $2,960 each. The following transactions occurred during January of the current year

Answer 1

12820 Debit Credit 19040 5500 4400 o 280 1800 15900 Income Statement Service revenue Less: expenses Salary Utilities Supplies Interest Depreciation Rent Insurance Total expense 5920 1100 1840 125 600 400 500 1320 30000 10485 28800 12820 Income 2335 TRIAL BALANCE Particulars Cash Prepaid Insurance Prepaid rent Accounts receivable Supplies Accounts payable Common stock Retained earnings 5% note payable Delivery van Service revenue Salaries expense Deferred revenue Utilities expense Utilities expense payable Supplies expense Interest expense Interest payabke Depreciation expense Acc. Dep Advance from customers Insurance expense Rent expenseo Salaries payable TOTAL 5920 1480 1100 Statement of retained earnings Opening balance Add: profit for the year Closing balance 1100 1320 2335 3655 1840 125 125 600 Amount 1800 600 400 BALANCE SHEET Assets Cash Prepaid rent Prepaid insurance SUPPLIES Delivery van Less: Acc dep 500 400 Amount Liabilities 19040 Accounts payable 4400 5% note payable 5500 Deferred revenue 280 Utilities expense payable Interest payable 28200 Advance from customers Salaries payable Common stock Retained earnings 2960 68505 28800 600 30000 1480 1100 125 400 2960 15900 3655 68505 Total 57420 Total 57420 Shant1 77 cboot170 Shoot170 chetton chant1 01 choat 192 chat102 chant 194 Shoot105 Shootin