Francines 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. (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 Liabilities: $ 1,700 Accounts Payable 1,050 Stockholders' Equity: 850 Contributed Capital Retained Earnings Assets: Cash Accounts Receivable Supplies $ 960 $2,000 640 Total Assets $3,600 Total Liabilities & Stk. Equity $3,600 January Transactions for Francine's Fast Deliveries, Inc. (FFD) Date 1 Owners invest $29,000 of additional cash in the business. 2a Supplies are purchased for $1,150 on account. 2b Insurance is paid for 12 months beginning January 1: $8,040 (Record as an asset) 2c Rent is paid for 3 months beginning in January: $4,350 (Record as an asset) 2d Two employees are hired. Each employee will be paid $1,640 per month 3 FFD borrows $33,000 from 1st State Bank at 6% annual interest. A delivery van is purchased for cash. Including tax the total cost was $55,200. It 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 $735 of the receivables from December's sales are collected. 8 $768 of the accounts payable from December are paid. 9 Performed services for customers on account. Mailed invoices totaling $10,600. 10 Services are performed for cash customers: $7,420. Wages for the first half of the month are paid on January 16: $1,640. 20 The company receives $3,950 from a customer for an advance order for services to be provided in January and February. 16 25 30a 30b The company receives $3,950 from a customer for an advance order for services to be provided in January and February. Collections from customers on account (see January 9 transaction): $4,240 The last 2 weeks wages earned by employees are $820 per employee and will be paid on February 3. A $1,040 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 $400. h 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. Credit FAST DELIVERIES, INC. Adjusted Trial Balance January 31 Account Title Debit Cash $ 10,047 Accounts Receivable 6,675 Supplies 400 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 Rent Expense Interest Expense FAST DELIVERIES, INC. Income Statement $ 0 FAST DELIVERIES, INC. Balance Sheet At January 31 Assets Liabilities sets Current Assets Current Liabilities Total Current Assets $ 0 Total Current Liabilities Equipment, net 0 Total liabilities Stockholders' Equity Total Stockholders' Equity Total Liabilities and Stockholders' Equity Total Assets
