3 Part 3 of 6 Required Information The following information applies to the questionsplayed below) France's Fast Deliveries, Inc. ) was organized in December of 2011. It had mited activity in 2011. The resulting balance sheet at the beginning of 2012 provided below: 16.66 points Francinerast Dellveres, ne Balance Sheet at anuary 1, 2012 Assets Llabilities: Cash $ 1175 Accounts Payable Accounts Receivable 550 Stockholders' Equity Supplies 500 Contributed Capital Retained Earnings eBook $ 865 $1000 460 Print Total Assets $2.325 Total Liabilities & SK Equity $2,325 January Transactions for Francine's Fast Deliveries, Inc. (FFD) Date 1 Owners Invest $22,000 of additional cash in the business. Za Supplies are purchased for $750 on account 2b Insurance is paid for 12 months beginning January $6,780 (Record as an asset) 20 Rent is paid for 3 months beginning in January: $3,750 (Record as an asset? 2d Two employees are hired. Each employee will be paid $1150 per month 3 FFD borrows $25,000 from 1st State Bank at 6% annual interest. A delivery van is purchased for cash including tax the total cost was 6 $38,400. It will be used for 4 years and will be depreciated monthly using straight line with no salvage value. A tus month of depreciation will be charged in January 7 $455 of the receivables from December's sales are collected 8 $692 or the accounts payable from December are paid 9 Performed services for customers on account Malled invoices totaling $9,000 10 Services are performed for cash customers: $6,300 16 Wages for the first half of the month are paid on January 16: $1150 20 The company receives $2750 from a customer for an advance order for services to be provided in January and February 25 Collections from customers on account see January 9 transaction $3,600 300 The last 2 weeks wages earned by employees are $575 per employee and will be paid on February 300 A $725 utility bill for January arved it is due on February 15. Addional information for adjusting entries at January 31 Supplies on hand on January 31105375 The company completed box of the deliveries for the customer who paid in advance on naty 20. testised for the Bank, ASSUmmon to the state Bank Recordinuty deteci con Adjust the prepalo asset Rent and secounts as needed Check my work mode : This shows what is correct or i 3 Olequired intormation 3 of 6 Answer is not complete FAST DELIVERE, IN Unadmed Thal Balance January 31 Account TH Dobit Credit Cash 5 11. 108 Accounts Receivable 5,595 Supplies 375 Prepaid Insurance 6,125 Prepaid Rent 2,100 Equipment 38,400 Accumulated Depreciation 800 Equipment Accounts Payable 923 Uneamed Revenue 875 Notes Payable Wages Payable 565 X Interest Payable 125 X Contributed Capital 22,000 Retained Earnings 460 Service Revenue 17,175 Wages Expenses 575 Supplies Expenses 875 Depreciation Expense 800 X Interest Expense 125 Utilities Expense 725 Totals $ 66,803 $ 42.923 Required information [The following information applies to the questions displayed below.) Francine's Fast Deliveries, Inc. (FFD) was organized in December of 2011. It had limited activity in 2011. The resulting balance sheet at the beginning of 2012 is provided below: Francine's Fast Deliveries, Inc. Balance Sheet at January 1, 2012 Assets: Liabilities: Cash $ 1,175 Accounts Payable $ 865 Accounts Receivable 650 Stockholders' Equity Supplies 500 Contributed Capital $1.000 Retained Earnings 460 Total Assets $2,325 Total Liabilities & Stk. Equity $2,325 January Transactions for Francine's Fast Deliveries, Inc. (FFD) Date 1 Owners Invest $22,000 of additional cash in the business. 2a Supplies are purchased for $750 on account. 2b Insurance is paid for 12 months beginning January 1: $6,780 (Record as an asset) Rent is paid for 3 months beginning in January: $3,150 (Record as an 2c asset) 2d Two employees are hired. Each employee will be paid $1,150 per month 3 FFD borrows $25,000 from 1st State Bank at 6% annual Interest. A delivery van is purchased for cash. Including tax the total cost was 6 $38,400. It will be used for 4 years and will be depreciated monthly using straight-line with no salvage value. A full month of depreciation will be charged in January 7 $455 of the receivables from December's sales are collected. 8 $692 of the accounts payable from December are paid Performed services for customers on account. Mailed Invoices totaling $9,000. 10 Services are performed for cash customers: $6,300. 16 Wages for the first f the mon are paid on January 16: $1,150. 20 The company receives $2,750 from a customer for an advance order for services to be provided in January and February 25 Collections from customers on account (see January 9 transaction $3,600 The last 2 weeks wages earned by employees are $575 per employee and will be paid on February 3. 300 A $725 utility bill for January arrived. It is due on February 15. Additional Information for adjusting entries at January 31: a. Supplies on hand on January 31 total $375. b. The company completed 60% of the deliveries for the customer who paid in advance on January 20. Interest is accrued for the bank loan. (Assume a full month for the 1st State Bank loan.) d. Record January depreciation. e. Adjust the prepaid asset (Rent and Insurance) accounts as needed. 30a