Background information: 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: Assets: Cash Francine's Fast Deliveries, Inc. Balance Sheet at January 1, 2022 Liabilities: $950 Accounts Payable 1000 Stockholders' Equity: 300 Contributed Capital Retained Earnings $2,250 Total Liabilities & Stk. Equity Accounts Receivable Supplies $600 Total Assets $1,000 650 $2,250 January Transactions for Francine's Fast Deliveries, Inc. (FFD) Ch. Date 3 Owners invest $17,500 of additional cash in the business 3 2a Supplies are purchased for $1,200 3 2b Insurance is paid for 12 months beginning January 1: $4,200 (Record as an asset) 3 2c Rent is paid for 3 months beginning in January 26,300 (Record as an asset) 3 2d Two employees are hired. Each employee will os paid $2,500 per month 3 3 FFD borrows $36,000 from 1s State Bank at 10% annual interest. 3 6 A delivery van is purchased for cash. Including tax the total cost was 4 $21,600. 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 3 7 $800 of the receivables from December's sales are collected. 3 8 $700 of the accounts payable from December are paid. 9 Performed services for customers on account. Mailed invoices totaling $12,300. 3 10 Services are performed for cash customers: $8,400. 3 16 Wages for the first half of the month are paid on January 16: $2,500. 20 The company receives $3,600 from a customer for an advance order for services to be provided in January and February. 3 25 Collections from customers on account (see January 9 transaction): $6,100 4 30a The last 2 weeks' wages earned by employees are $1,250 per employee and will be paid on February 3. . 4 306 A $1,350 utility bill for January arrived. It is due on February 15. 4 a) b) Additional Information for adjusting entries at January 31: (Ch. 4) Supplies on hand on January 31 total $300. The company completed 40% 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.) Adjust the prepaid asset accounts as needed Record January Depreciation d) e) ACCT 201 Project 1 Name Credit Debit 127 500 17,500 14200 1. Journal entries for January. # Account Name 1 cash capital 20 Supplies Accounts payable ab Prepaid insurance Cash 20 Prepaid rent 20 1,200 4,200 4.200 61300 6,300 36.000 36,000 21.600 a1.600 800 og 800 700 700 3 Cash Loan 6 Delivery van cash 7 Cash Accounts receivable Accounts payable Cash a Accounts recewable Seruice revenue 10 Cash Service Revenue 16 Wapes cash 20 Cash Advance Las Cash Accounts receivable 12,300 12.300 8.400 8,400 2.500 2 soo 3,600 3.600 6.100 30a wages 6.100 1,250 1,250 Ob b utility expenses 1,350 ACCT 201 Project 1 Name 2. Post to T accounts (Below) Leave space for the following T Accounts needed for adjusting entries: Accumulated Depreciation, Interest Payable Supplies Prepaid Insurance Rev. 12,300 CASH Accounts Receivable Bal. 950 * Bal. 1,000 Cash 800 bol.300 Supplies Accounts Rec. 1000. Service 1,200 Cash 6,100 Acc Loan 36,000 Paycube Service Rev. 20,70 contributed 1,000 capital Prepaid Rent Equipment Accum. Depreciation Notes Payable Interest Payable Accounts Payable Unearned Revenue Cash 700 Bol.600 Supplies 1,200 Wages Payable Contributed Capital Retained Earnings Service Revenue Wages Expense Utility Expense Supplies Expense Interest Expense Insurance Expense Rent Expense Depreciation Expense 3. Prepare Unadjusted Trial Balance, Post the adjusting entries in (4) and complete the Adjusted Trial Balance Unadjusted Adjustments Adjusted TB TB Account Debit Credit Debit Credit Debit Credit CASH Accounts Receivable Supplies Prepaid Insurance Prepaid Rent Equipment Accumulated Depreciation Accounts Payable Unearned Revenue Notes Payable Interest Payable Wages Payable Contributed Capital Retained Earnings Service Revenue Wages Expense Utility Expense Supplies Expense Interest Expense Insurance Expense Rent Expense Depreciation Expense Totals Name ACCT 201 Project 1 4. Prepare adjusting entries below. Account Name Debit Credit # 5. Post the adjusting entries to the T-accounts to update your account balances. Name ACCT 201 Project 1 6. Prepare the end of January financial statements below: FFD, Inc. Income Statement For the period January 1 - January 31, 2022 Revenue Expenses Net income FFD, Inc. Statement of Retained Eamings For the period January 1 - January 31, 2022 Retained earnings, beginning of period Add: Less: Retained earings, end of period FFD, Inc. Balance Sheet as of January 31, 2022 ASSETS LIABILITIES Total Liabilities STOCKHOLDERS' EQUITY Total stockholders' equity Total stockholders' equity & Liab