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:

Francines Fast Deliveries, Inc. Balance Sheet at January 1, 2012
Assets:				Liabilities:
Cash	$	1,175		Accounts Payable	$	865
Accounts Receivable		650		Stockholders Equity:
Supplies		500		Contributed Capital	$	1,000
				Retained Earnings		460
Total Assets	$	2,325		Total Liabilities & Stk. Equity	$	2,325

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

Date
1	Owners invest $22,000 of additional cash in the business.
2a	Supplies are purchased for $750 on account.
2b	Insurance is paid for 12 months beginning January 1: $6,780 (Record as an asset)
2c	Rent is paid for 3 months beginning in January: $3,150 (Record as an asset)
2d	Two employees are hired. Each employee will be paid $1,150 per month
3	FFD borrows $25,000 from 1st State Bank at 6% annual interest.
6	A delivery van is purchased for cash. Including tax the total cost was $38,400. 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	$455 of the receivables from Decembers sales are collected.
8	$692 of the accounts payable from December are paid.
9	Performed services for customers on account. Mailed invoices totaling $9,000.
10	Services are performed for cash customers: $6,300.
16	Wages for the first half of the month are paid on January 16: $1,150.
20	The company receives $2,750 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): $3,600
30a	The last 2 weeks wages earned by employees are $575 per employee and will be paid on February 3.
30b	A $725 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 $375.
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.

Answer is complete and correct Cash Accounts Receivable Beg bal Jan. 1 Jan. 3 Jan. Beg bal 1,175 22,000 25,000 455 6,300 2,750 3,600 650 6.780Jan. 2b 3,150 Jan. 2c 9,000 455Jan. 7 3,600 Jan. 25 Jan. 9 38,400 Jan. 6 End bal Jan. 10 Jan. 20 Jan. 25 692 Jan. 8 5,595 1.150 Jan. 16 End bal 11.108 Supplies 500 750 Prepaid Insurance Beg bal Beg bal Jan. 2a 875 Jan. 31a Jan. 2b 6,780 56Jan. 31e End bal End bal 375 6,215 Prepaid Rent Equipment Beg bal Jan. 2c Beg bal 3,150 1,050 Jan. 31e Jan. 6 38,400 End bal 2,100 38,400 bal Accounts Payable Accumulated Depreciation Beg bal 865 750 Jan. 2a 725 Jan. 30b Beg bal 692 800Jan. 31d Jan. 8 End bal 1,648 End bal 800 Notes Payable Unearned Revenue Beg bal Beg bal 25,000Jan. 3 Jan. 31b 1,650 2,750Jan. 20 End bal 25,000 End bal 1,100 Wages Payable Interest Payable Beg bal Beg bal 1.150 Jan. 30a 125 Jan. 31c End bal 1,150 End bal 125 Retained Earnings 460 Contributed Capital Beg bal Beg bal 1,000 22,000Jan. 1 End bal 460 End bal 23,000 Wages Expense Service Revenue Beg Beg bal 9,000 Jan. 9 6,300 Jan. 10 1,650 Jan. 31b bal Jan. 16 Jan. 30a 1,150 1,150 End bal 2,300 16,950 bal Supplies Expense Utilities Expense Beg bal Beg bal Jan. 31a 875 Jan. 30b 725 End bal 875 End bal 725 Insurance Expense Interest Expense Beg bal Beg bal Jan. 31e 565 Jan. 31c 125 End bal 565 125 bal Depreciation Expense Rent Expense Beg bal Beg bal Jan. 31e Jan. 31d 800 1,050 End bal 800 End bal 1,050 3 3. Prepare an unadjusted trial balance using the T-Account balances Part 3 of 6 Answer is complete but not entirely correct. FAST DELIVERIES, INC. Unadjusted Trial Balance January 31 16.66 polnts Account Title Debit Credit Cash Accounts Receivable Supplies Prepaid Insurance Prepaid Rent Equipment Accumulated Depreciation $ 11,108 5,595 1,875 6,780 3,150 38,400 Equipment Accounts Payable Unearned Revenue Notes Payable Wages Payable Interest Payable Contributed Capital Retained Earnings Service Revenue Wages Expenses Supplies Expenses Depreciation Expense Interest Expense Utilities Expense Totals 800 1,648 2,750 25,000 1,150 1,500 23,000 460 16,950 2,300 850 800 1,500 725 $ 73,083 73,258