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: $ 400 Assets: Cash Accounts Receivable Supplies TAST DELIVERIES, INC. Balance Sheet at January 1 Liabilities: $11,000 Accounts Payable 820 Stockholders' Equity! 460 Common Stock Retained Earnings $12,280 Total Liabilities and Stockholders' Equity 11,150 730 $12,280 Total Assets Two employees have been hired, at a monthly salary of $2,900 each. The following transactions occurred during January of the current year. Ch. 2 2. 2 January 1 2 3 2 2 2 2 2 3 4 5 6 7 8 9 10 16 20 $3,600 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.) TDI borrow $33,600 cash from First State Bank at 6 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 atook. Additional supplies coating $1,500 are purchased on account and received $800 of accounts receivable arising from last year's December sales are collected. $500 of accounts payable from December of last year are paid. Performed services for customers on account. Sent invoices totaling $11,200. $7,100 of services are performed for customers who paid immediately in cash. $2,900 of salaries are paid for the first half of the month. PDI receives $3,600 cash from a customer for an advance order for services to be provided later in January and in February. $4,100 is collected from customers on account (see January 9 transaction). 3 3 3 25 < Prev 4 5 of 5 Next > NESTA

Answer 1

Cash 5 6 Beg. Bal 11000 36001 Beg. Bal Accounts Receivable 820 9 11200 8007 4100/25 7 3 33600 36002 8 5 2400014 8000 800 9 7 5008 2900 16 10 10 End. Bal 7120 7100 3600 20 12 25 4100 13 End. Bal 33600 14 15 16 Supplies Prepaid Insurance 17 Beg. Bal 1,670 lb 460 1500 Beg. Bal 18 6 1 3600 300 g 19 20 End. Bal 290 End. Bal 3300 21 22 Prepaid Rent Equipment 23 Beg. Bal Beg. Bal 24 2 3600 3008 4 24000 25 26 End. Bal 3300 End. Bal 24000

28 Accumulated Depreciation Accounts Payable 29 Beg. Bal Beg. Bal 30 500 e 8 500 400 15006 1000 30b 31 32 33 End. Bal 500 End. Bal 2400 34 Unearned Revenue Notes Payable Beg. Bal 35 36 37 38 Beg. Bal с 2,160 3600 20 336003 39 End. Bal 1440 End. Bal 33600 40 41 Interest Payable Wages Payable 42 Beg. Bal Beg. Bal 43 168d 2900 f 44 45 End. Bal 168 End. Bal 2900 46

47 Common Stock Retained Earnings 48 Beg. Bal 11150 Beg. Bal 730 49 800015 50 51 End. Bal 19150 End. Bal 730 52 53 Service Revenue Wages Expense Beg. Bal Beg. Bal 16 2900 54 55 56 57 1120019 7100 10 2,160 C f 2900 58 59 End. Bal 20460 End. Bal 5800 60 61 Utilities Expense Supplies Expense 62 Beg. Bal Beg. Bal Beg. Bal 63 a 1000 1,670 64 65 End. Bal 1000 End. Bal 1670

67 Interest Expense Insurance Expense 68 Beg. Bal Beg. Bal 69 168 300 70 71 End. Bal 168 End. Bal 300 72 73 Rent Expense Depreciation Expense 74 Beg. Bal Beg. Bal 300 e 500 75 76 77 End. Bal 300 End. Bal 500 78

157 158 159 Account Title Credit FAST DELIVERIES INC. Adjusted Trial Balance Debit 33600 7120 290 160 161 162 163 3300 164 3300 24000 165 166 500 167 2400 33600 168 169 170 171 172 173 174 175 Cash Accounts Receivable Supplies Prepaid Insurance Prepaid Rent Equipment Accumulated Depreciation Accounts Payable Notes Payable Unearned Revenue Interest Payable Wages Payable Common Stock Retained Earnings Service Revenue Wages Expense Utilities expense Supplies expense Interest Expense Insurance Expense 1440 168 2900 19150 730 20460 176 5800 1000 1670 177 178 179 168 300

180 300 181 Rent Expense Depreciation Expense Total 500 182 81348 81348 183