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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

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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 $ 1700 Accounts Payable Accounts Receivable 1,050 Stockholders' Equity Supplies 850 Contributed Capital Retained Earnings $ 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. 6 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 $735 of the receivables from December's sales are collected. 8 5768 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. 16 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 25 Collections from customers on account (see January 9 transactions $4.240 300 The last 2 weeks wages earned by employees are $820 per employee and will be paid on February 3. 30 A $1040 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. The company completed 60% of the deliveries for the customer who paid in advance on January 20, Interest is accrued for the bank loan. (A a full month for the 1st State Bank loan.) d. Record January depreciation. e. Adjust the prepaid asset (Rent and Insurance) accounts as needed b. 4.-5.Analyze the accounts and prepare the adjusting entries required using the additional information provided. Post the adjusting entry activity to the T- Accounts in Requirement #2. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list x 1 Supplies on hand on January 31 total $400. 2 The company completed 60% of the deliveries for the customer who paid in advance on January 20. 3 Interest is accrued for the bank loan. (Assume a full month for the 1st State Bank loan.) 4 Record January depreciation. Credit 5 Adjust the prepaid asset, Insurance account as needed. 6 Adjust the prepaid asset, Rent account as needed. Note : - Journal entry has been entered Record entry Clear entry View general journal

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