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 $ $950$ Accounts Payable $ $400$

Accounts Receivable $500$ Stockholders$$ Equity:

Supplies $300$ Common Stock $ $1,000$

Retained Earnings $350$

Total Assets $ $1,750$ Total Liabilities & Stk$.$ Equity $ $1,750$

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

Date

$1$ Owners invest $$19,000$ of additional cash in the business.

$2$a Supplies are purchased for $$600$ on account.

$2$b Insurance is paid for $12$ months beginning January $1$: $$6,240($Record as an asset$)$

$2$c Rent is paid for $3$ months beginning in January: $$2,700($Record as an asset$)$

$2$d Two employees are hired. Each employee will be paid $$940$ per month

$3$ FFD borrows $$22,000$ from $1$st State Bank at $6\%$ annual interest.

$6$

A delivery van is purchased for cash. Including tax the total cost was $$31,200.$ 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.

$7$ $$350$ of the receivables from December$$s sales are collected.

$8$ $$320$ of the accounts payable from December are paid.

$9$ Performed services for customers on account. Mailed invoices totaling $$8,400.$

$10$ Services are performed for cash customers: $$5,880.$

$16$ Wages for the first half of the month are paid on January $16$: $$940.$

$20$

The company receives $$2,300$ 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$)$: $$3,360$

$30$a

The last $2$ weeks wages earned by employees are $$470$ per employee and will be paid on February $3.$

$30$b A $$590$ 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 $$180.$

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.