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 Liabilities: Assets: Cash $ 10,500 Accounts Payable Accounts Receivable Stockholders' Equity: 840 500 $ 400 11,130 310 Supplies Common Stock Retained Earnings Total Assets $ 11,840 Total Liabilities and Stockholders' Equity $ 11,840 Two employees have been hired, at a monthly salary of $2,180 each. The following transactions occurred during January of the current year. January 1 2 $3,900 is paid for 12 months' insurance starting January 1. (Record as an asset.) $4,800 is paid for 12 months of rent beginning January 1. (Record as an asset.) FDI borrows $32,400 cash from First State Bank at 68 annual interest; this note is payable in two years. 3 5 5