Question

journal entry worksheet.. thank you.

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: Assets Cash Accounts Receivable Supplies $ FAST DELIVERIES, INC. Balance sheet at January 1 Liabilities: $11,300 Accounts Payable 650 Stockholders Iquity 200 Common Stock Retained Earnings $12,150 Total Liabilities and Stockholders' Equity 300 Total Assets 11,550 300 $12,150 Two employees have been hired, at a monthly salary of $2,720 each. The following transactions occurred during January of the current year. Ch. 2 2 January 1 2 3 4 5 6 7 B $4,200 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.) FDI borrows $28,800 cash from First State Bank at 68 annual interest this note is payable in two years. A delivery van is purchased using cash. Including tax, the total cost was $24,000. Stockholders contribute $8,000 of additional cash to TDI for its common stock. Additional supplies conting $1,200 are purchased on account and received. $800 of accounts receivable arising from last year's December sales are collected. $800 of accounts payable from December of last year are paid. Performed services for customers on account. Sent invoices totaling $10,300. $7,900 of services are performed for customers who paid immediately in cash. $2,720 of salaries are paid for the first half of the month. TDI receives $4,000 cash from a customer for an advance order for services to be provided later in January and in February. $4,900 is collected from customers on account (see January 9 transaction). 10 16 20 3 3 25

Answer 1

Preparation of Adjusting Entries for the Month Ended January 31: Journal Entries Date Account Title and Explaination Post. Ref. Debit $ Credit $ a $ 1,400.00 Utilities Expense Utilities Payable (To record adjusting entry for Utilities expense) $ 1,400.00 b $ 1,130.00 $ 1,130.00 Supplies Expense ($200+$1200-$270) Supplies (To record adjusting entry for consumption of Supplies) с $ 2,400.00 $ 2,400.00 Unearned Service Revenue ($4000 x 60%) Service Revenue (To record adjusting entry for earned portion of Unearned service revenue)

d $ 144.00 $ 144.00 e Interest Expense ($28800 x 6% x 1/12) Interest Payable (To record adjusting entry for accrued Interest) Depreciation Expense ($24000 x 1/4 x 1/12) Accumulated Depreciation (To record adjusting entry for Depreciation Expense) $ 500.00 $ 500.00 f $ 1,360.00 $ 1,360.00 Salaries Expense Salaries Payable (To record adjusting entry for accrued Salaries Expense) g $ 350.00 $ 350.00 Insurance Expense ($4200/12) Prepaid Insurance (To record adjusting entry for expired portion of Prepaid Insurance) $ 300.00 $ 300.00 Rent Expense ($3600/12) Prepaid Rent (To record adjusting entry for expired portion of Prepaid Rent)