Adjusted Trial Balance January 31 Account Title Debit Credit Cash Accounts Receivable Supplies Prepaid Rent Prepaid Insurance Equipment Accumulated DepreciationEquipment Accounts Payable Unearned Revenue Wages Payable Interest Payable Notes Payable Contributed Capital Retained Earnings Service Revenue Wages Expenses Utilities Expense Supplies Expenses Depreciation Expense Insurance Expense Prepare end-of-January financial statements. (Balance Sheet only, items to be deducted must be indicated with a negative amount.) 7. FAST DELIVERIES, INC. Income Statement Service Revenue Wages Expense Beg. bal Beg. bal. Jan. 16 Jan. 30a 9,600 Jan.9 1,360 1,360 Jan. 31b End. bal 16,320 End. bal. 2,720 Utilities Expense Supplies Expense Beg. bal. Jan. 30b Beg. bal. Jan. 31a 860 End. bal 860 End. bal Interest Expense Insurance Expense Beg. bal. Jan. 31c Beg. bal Jan. 31e End. bal End. bal. Rent Expense Depreciation Expense Beg. bal. Beg. bal Jan. 31e Jan. 31d Accumulated Depreciation Accounts Payable Beg. bal Beg. bal Jan. 8 Jan. 31d 688 900 Jan. 2a 860 Jan. 30b End. bal End. bal 1,072 Unearned Revenue Notes Payable Beg. bal Jan. 31b Beg. bal 3,200 Jan. 20 28,000 Jan. 3 End. bal 3,200 End. bal 28,000 Interest Payable Wages Payable Beg. bal Beg. bal Jan. 31c 1,360 Jan. 30a End. bal End. bal 1,360 Contributed Capital Retained Earnings Beg. bal Beg. bal 25 nnnl.lan 1 Unadjusted Trial Balance January 31 Account Title Debit Credit Cash Accounts Receivable Supplies Prepaid Insurance Prepaid Rent Equipment Accumulated Depreciation-Equipment Accounts Payable Unearned Revenue Notes Payable Wages Payable Interest Payable Contributed Capital Retained Earnings Service Revenue Wages Expenses Supplies Expenses Depreciation Expense Interest Expense Utilities Expense 860 4.-5.Analyze the accounts and prepare the adjusting entries required using the additional information provided. Post the adjusting entry activity to the T-Accounts in Requirement #2. (if no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 23 4 6 Supplies on hand on January 31 total $310 Note: Enter debits before credits. Date General Journal Debit Credit Jan. 31a 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: $1,400 Accounts Payable Cash Accounts Receivable Supplies $ 860 850 Stockholders' Equity: 650 Contributed Capital Retained Earnings $1,500 540 Total Assets $2,900 Total Liabilities&Stk. Equity $2,900 January Transactions for Francine's Fast Deliveries, Inc. (FFD) Date 1 Owners invest $25,000 of additional cash in the business 2a Supplies are purchased for $900 on account. 2b Insurance is paid for 12 months beginning January 1: $7,320 (Record as an asset) 2c Rent is paid for 3 months beginning in January: $3,600 (Record as an asset) 2d Two employees are hired. Each employee will be paid $1,360 per month 3 FFD borrows $28,000 from 1st State Bank at 6% annual interest. A delivery van is purchased for cash. Including tax the total cost was $45,600. It 6 will be used for 4 years and will be depreciated monthly using straight-line with Cash Accounts Receivable 1,400 25,000 28,000 595 6,720 3,200 3,840 850 9,600 Beg. bal Jan. 1 Jan. 3 Jan. 7 Jan. 10 Jan. 20 Jan. 25 Beg. bal 7,320 Jan. 2b 3,600 Jan. 2c Jan. 9 595 Jan. 7 3,840 Jan. 25 45,600 Jan. 6 688 Jan. 8 End. bal 6,015 1,360 Jan. 16 End. bal 10,187 Supplies 650 900 Prepaid Insurance Beg. bal 0 Beg. bal 0 0 Jan. 2a 1,240 Jan. 31a Jan. 2b 7,320 610 Jan. 31e End. bal 310 End. bal 6,710 Prepaid Rent Equipment Beg. bal Jan. 2c Beg. bal Jan. 6 0 3,600 45,600 End. bal 2,400 End. bal 45,600 6 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 $595 of the receivables from December's sales are collected. 8 $688 of the accounts payable from December are paid. 9 Performed services for customers on account. Mailed invoices totaling $9,600. 10 Services are performed for cash customers: $6,720. 16 Wages for the first half of the month are paid on January 16: $1,360. The company receives $3,200 from a customer for an advance order for services 20 to be provided in January and February. Collections from customers on account (see January 9 transaction): $3,840 25 The last 2 weeks wages earned by employees are $680 per employee and will be paid on February 3. 30b A $860 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 $310. The company completed 60% of the deliveries for the customer who paid in advance b. on January 20 C. 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