ACCT $2301-$ Comprehensive Problem $-$ Team B

Francine's Fast Deliveries, Inc. $($FFD$)$ was organized in December of $2021.$ It had limited activity in $2021.$ The resulting balance sheet at the beginning of $2022$ is provided below:

Francine's Fast Deliveries, Inc.

Balance Sheet January $1,2022$

Assets:

Cash

Accounts Receivable

Supplies

$$1,025$ Liabilities:

$550$ Accounts Payable

$350$

Stockholders' Equity:

Contributed Capital

Retained Earnings

Total Assets

$$1,925$

Total Liabilities & Stk$.$ Equity

$$525$

$q,$

$q,$

January Transactions for Francine's Fast Deliveries, Inc. $($FFD$)$

Date

$1$ Owners invest $$20,000$ of additional cash in the business.

$2$a Supplies are purchased for $$650$ on account.

$2$b Insurance is paid for $12$ months beginning January $1$: $$6,420($Record as an asset$)$

$2$c Rent is paid for $3$ months beginning in January: $$2,850($Record as an asset$)$

$2$d Two employees are hired. Each employee will be paid $$1,010$ per month

$3$ FFD borrows $$23,000$ from $1^{st}$ State Bank at $6\%$ annual interest.

$6$ A delivery van is purchased for cash. Including tax the total cost was $$33,600.$ 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$$$385$ of the receivables from December's sales are collected.

$8$$$420$ of the accounts payable from December are paid.

$9$ Performed services for customers on account. Mailed invoices totaling $$8,600.$

$10$ Services are performed for cash customers: $$6,020.$

$16$ Wages for the first half of the month are paid on January $16$:$$1,010.$

$20$ The company receives $$2,450$ 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$)$: $$3,440$

$30$a The last $2$ weeks wages earned by employees are $$505$ per employee and will be paid on February $3.$

$30b$ A $$635$ 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 $$200.$

b$.$ The company completed $60\%$ of the deliveries for the customer who paid in advance on January $20.$

c$.$ Interest is accrued for the bank loan. $($Assume a full month for the $1^{st}$ State Bank loan.$)$

d$.$ Record January depreciation.

e$.$ Adjust the prepaid asset $($Rent and Insurance$)$ accounts as needed.