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prepare an adjusted trial balance

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 Assets: Liabilities: Cash $ 12,300 Accounts Payable $ 300 Accounts Receivable 810 Stockholders' Equity: Supplies 260 Common Stock 1,168 Retained Earnings 1,910 Total Assets $ 13,370 Total Liabilities and Stockholders' Equity $ 13,370 Two employees have been hired, at a monthly salary of $2,740 each. The following transactions occurred during January of the current year January 1 $4,200 is paid for 12 months' insurance starting January 1. (Record as an asset.) 2 $3,600 is paid for 12 months of rent beginning uary i. (Record as an asset.) 3 FDI borrows $25,200 cash from First State Bank at 5% annual interest; this note is payable in two years. 4 A delivery van is purchased using cash. Including tax, the total cost was $24,000. Stockholders contribute $4,000 of additional cash to FDI for its common stock. Additional supplies costing $1,100 are purchased on account and received. $600 of accounts receivable arising from last year's December sales are collected. $200 of accounts payable from December of last year are paid. Performed services for customers on account. Sent invoices totaling $10,680. $7,100 of services are performed for customers who paid immediately in cash. $2,740 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). 5 6789101920 January Additional information for adjusting entries: 31a. A $1,000 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 $250. 31c. 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 0.05). For convenience, calculate January interest as one-twelfth of the annual interest. 3le. 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 $1,370 per employee and will be paid on February 3. 319. Adjust the prepaid asset accounts (for rent and insurance) as needed. FAST DELIVERIES, INCORPORATED Adjusted Trial Balance At January 31 Account Titles Debit Credit Cash Accounts Receivable Supplies Prepaid Rent Prepaid Insurance Vehicles Accumulated Depreciation Accounts Payable Deferred Revenue Salaries and Wages Payable Interest Payable Notes Payable (long-term) Common Stock Retained Earnings Retained Earnings Service Revenue Salaries and Wages Expense Utilities Expense Supplies Expenses Depreciation Expense Insurance Expense Rent Expense Interest Expense Totals $ 0 $ 0

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