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 $1,100 Accounts Payable Accounts Receivable 600 Stockholders' Equity: Supplies 450 Contributed Capital Retained Earnings $ 725 $1,000 425 Total Assets $2,150 Total Liabilities & Stk. Equity $2,150 January Transactions for Francine's 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. A delivery van is purchased for cash. Including tax the total cost was $36,000. It Prepare end-of-January financial statements. (Balance Sheet only, items to be deducted must be indicated with a negative amount.) FAST DELIVERIES, INC. Income Statement For the Month Ended January 31 Service Revenue Expenses Wages Expense Supplies Expense Depreciation Expense Interest Expense Utilities Expense Insurance Expense Rent Expense Net Income FAST DELIVERIES, INC. Statement of Retained Eamings For the Month Ended January 31 Retained Earnings, Beginning of Period Add: Net Income Less: Dividends Retained Earnings, End of Period 425 FAST DELIVERIES, INC. Balance Sheet At January 31 Assets Liabilities Current Liabilities Current Assets Cash Accounts Receivable Accounts Payable Uneamed Revenue Wages Payable Interest Payable Supplies Prepaid Insurance Prepaid Rent Total Current Assets Equipment Accummulated Depreciation Total Current Liabilities Notes Payable Equipment, net Total liabilities Stockholders' Equity Contributed Capital