Francine's Fast Deliveries, Inc. Balance Sheet at January 1, 2012 Assets: Liabilities: $1,850 Accounts Payable $ 1,260 Cash Accounts Receivable 1150 Stockholders Equity. 950 Contributed Capital $2,000 690 Retained Earnings Total Assets $3,950 Total Liabilities & Stk. Equity $3,950 January Transactions for Francine's Fast Deliveries, Inc. (FFD) Date 1 Owners invest $31,000 of additional cash in the business 2a Supplies are purchased for $1,250 on account 2b Insurance is paid for 12 months beginning Jenuary 1: $8,400 (Record as an asset) 2c Rent is paid for 3 months beginning in January: $4,650 (Record as an asset 2d Two employees are hired. Each employee will be paid $1,780 per month FFD borrows $35,000 from 1st State Bank at 6% annual interest. 6 3 A dellve ry van is purchased for cash Including tax the total cost was $60,000. It will be used for 4 years and will be depreciated monthy using straight-lne with no salvage value. A full month of depreciation will be charged in January. $805 of the receivables from December's sales are collected. 8 $1,008 of the accounts payable from December are paid. 9 Performed services for customers on account. Mailed involces totaling $11,000. 10 Services are performed for cash customers: $7,700 16 Wages for the first half of the month are paid on January 16: $1780 20 The company receives $4,250 from a customer for an advance order for services to be providedin January and Februany Collections from customers on (see January 9 transaction): $4,400 25 30a The last 2 weeks wages earned by employees are $890 per employee and will be paid on February 3. 0b A $1130 utility bill for January arrived. It is due on February 15. Additional Information for adjusting entries at January 3t a Supplies on hand on January 31 total $440 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 The company completed 60% of the deliveries for the customer who paid in advance on January 20