Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I'm not sure what I'm doing wrong? I'm fairly confident that my calculations are only wrong for the 31 A-E. Required Information [The following information

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

I'm not sure what I'm doing wrong? I'm fairly confident that my calculations are only wrong for the 31 A-E.

Required Information [The following information applies to the questions displayed 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 Assets: Liabilities: Cash $ 1.400 Accounts Payable $ 860 Accounts Receivable 850 Stockholders' Equity: Supplies 650 Contributed Capital $ 1.500 Retained Earnings Total Assets $2.900 Total Liabilities & Stk. Equity $2,900 540 January Transactions for Francine's Fast Deliveries, Inc. (FFD) Date 1 Owners invest $25.000 of additional cash in the business. 2a Supplies are purchased for $900 on account. 26 Insurance is paid for 12 months beginning January 1: $7.320 (Record as an asset) 2c Rent is paid for 3 months beginning in January: $3.600 (Record as an asset) 2d Two employees are hired. Each employee will be paid $1,360 per month 3 FFD borrows $28.000 from 1st State Bank at 6% annual interest. A delivery van is purchased for cash. Including tax the total cost was $45.600. 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 $595 of the receivables from December's sales are collected. 8 $688 of the accounts payable from December are paid. 9 Performed services for customers on account. Mailed invoices totaling $9.600. 10 Services are performed for cash customers: $6.720. 16 Wages for the first half of the month are paid on January 16: $1.360. 20 The company receives $3.200 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): $3.840 30a The last 2 weeks wages earned by employees are $680 per employee and will be paid on February 3. 300 A $860 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 $310. 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. b. Accounts Receivable Cash 1,400 25,000 28,000 Beg. bal. Jan. 9 850 9,800 0 595 Jan. 7 3,840 Jan 25 Beg. bal. Jan. 1 Jan. 3 Jan. 7 Jan. 10 Jan. 20 Jan. 25 0 7.320 Jan. 2b 3,600 Jan. 2c 45,600 Jan. 6 688 Jan. 8 1,360 Jan. 18 595 6.720 3,200 End. bal. 6,015 3,840 End. bal. 10.187 Supplies 650 900 Beg. bal. Jan. 2a 0 Beg. bal. Jan. 2b Prepaid Insurance 0 0 7,320 610 Jan. 31e 1.240 Jan. 31a End, bal 310 End. bal. 6.710 Beg. bal. Jan. 2c Prepaid Rent 0 3,600 0 810 Jan. 31e Beg. bal. Jan. 6 Equipment 0 45,600 End. bal. 2.990 End. bal. 45,600 Beg. bal. Accumulated Depreciation 0 0 950 Jan. 31d Beg. bal. Jan. 8 Accounts Payable 880 888 900 Jan. 2a 860 Jan. 30b End. bal. 950 End. bal. 1.932 Beg. bal. Unearned Revenue 0 0 3,200 Jan. 20 Beg bal Notes Payable 0 0 28,000 Jan. 3 Jan. 316 End. bal. 3,200 End. bal. 28.000 Interest Payable 0 Beg. bal. 0 Beg. bal. Wages Payable 0 0 1,360 Jan. 30a 140 Jan. 310 End. bal. 140 End. bal. 1,360 Retained Earnings Beg bal Contributed Capital 1,500 25,000 Jan. 1 Beg, bal 540 End, bal. 28,500 End. bal. 540 Service Revenue 0 Wages Expense 0 Beg. bal. 0 0 9,600 Jan. 9 6,720 Jan. 10 1,920 Jan. 316 Beg bal. Jan. 18 Jan. 30a 1,360 1.380 End, bal. 18,240 End. bal. 2.720 Utilities Expense 0 Beg bal. Beg bal. Jan. 30b Supplies Expense 0 0 340 880 Jan. 31a End. bal. 880 End. bal. 340 Interest Expense 0 140 Insurance Expense 0 0 Beg. bal. Jan. 310 0 Beg. bal Jan. 31e 610 End. bal. 140 End, bal. 610 Rent Expense 0 Depreciation Expense 0 0 0 Beg, bal. Jan. 31e Beg. bal. Jan. 310 1.200 950 End. bal. 1.200 End. bal. 950 950 X Answer is complete but not entirely correct. FAST DELIVERIES, INC. Unadjusted Trial Balance January 31 Account Title Debit Credit Cash Is 10.187 Accounts Receivable 6,015 Supplies 310 X Prepaid Insurance 8.710 X Prepaid Rent 2.990 % Equipment 45,600 Accumulated Depreciation- Equipment Accounts Payable 1.932 Unearned Revenue 3.200 Notes Payable 28.000 Wages Payable 1.360 Interest Payable 140 x Contributed Capital 28.500 Retained Earnings 540 Service Revenue 18.240 x Wages Expenses 2.720 Supplies Expenses 340 X Depreciation Expense 950 X Interest Expense 140 Utilities Expense 860 Totals S 78.822 IS 80.882

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing Business Continuity Global Best Practices

Authors: Rolf Von Roessing

1st Edition

1931332150, 978-1931332156

More Books

Students also viewed these Accounting questions

Question

=+ (d) Even if F has jumps, E[ F(X)] ={ + E, P2[X=x].

Answered: 1 week ago