Francines Fast Deliveries, Inc. Balance Sheet at January 1, 2012
Assets:				Liabilities:
Cash	$	1,100		Accounts Payable	$	725
Accounts Receivable		600		Stockholders Equity:
Supplies		450		Contributed Capital	$	1,000
				Retained Earnings		425
Total Assets	$	2,150		Total Liabilities & Stk. Equity	$	2,150

January Transactions for Francines Fast Deliveries, Inc. (FFD)

Date
1	Owners invest $21,000 of additional cash in the business.
2a	Supplies are purchased for $700 on account.
2b	Insurance is paid for 12 months beginning January 1: $6,600 (Record as an asset)
2c	Rent is paid for 3 months beginning in January: $3,000 (Record as an asset)
2d	Two employees are hired. Each employee will be paid $1,080 per month
3	FFD borrows $24,000 from 1st State Bank at 6% annual interest.
6	A delivery van is purchased for cash. Including tax the total cost was $36,000. 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	$420 of the receivables from Decembers sales are collected.
8	$580 of the accounts payable from December are paid.
9	Performed services for customers on account. Mailed invoices totaling $8,800.
10	Services are performed for cash customers: $6,160.
16	Wages for the first half of the month are paid on January 16: $1,080.
20	The company receives $2,600 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): $3,520
30a	The last 2 weeks wages earned by employees are $540 per employee and will be paid on February 3.
30b	A $680 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 $230.
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 1st State Bank loan.)
d.	Record January depreciation.
e.	Adjust the prepaid asset (Rent and Insurance) accounts as needed.

JOURNAL ENTRIES

1

Owners invest $21,000 of additional cash in the business.

2

Supplies are purchased for $700 on account.

3

Insurance is paid for 12 months beginning January 1: $6,600 (Record as an asset).

4

Rent is paid for 3 months beginning in January: $3,000 (Record as an asset).

5

Two employees are hired. Each employee will be paid $1,080 per month.

6

FFD borrows $24,000 from 1st State Bank at 6% annual interest.

7

A delivery van is purchased for cash. Including tax the total cost was $36,000. 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.

8

$420 of the receivables from Decembers sales are collected.

9

$580 of the accounts payable from December are paid.

10

Performed services for customers on account. Mailed invoices totaling $8,800.

11

Services are performed for cash customers: $6,160.

12

Wages for the first half of the month are paid on January 16: $1,080.

13

The company receives $2,600 from a customer for an advance order for services to be provided in January and February.

14

Collections from customers on account (see January 9 transaction): $3,520

15

The last 2 weeks wages earned by employees are $540 per employee and will be paid on February 3.

16

A $680 utility bill for January arrived. It is due on February 15.