January 2011 Transactions for Francines Fast Deliveries, Inc. (FFD) Date 1. Owners invest $18,000 of additional cash in the business. 2a. Supplies are purchased for $1,200 2b. Insurance is paid for 6 months beginning January 1: $2,400 (Record as asset) 2c. Rent is paid for 2 months beginning in January: $4,500 (Record as an asset) 2d. Two employees are hired. Each employee will be paid $2,400 per month 3. FFD borrows $12,000 from 1st State Bank at 12% annual interest. 6. A delivery van is purchased for cash. Including tax the total cost was $10,800. It will be used for 2 years and will be depreciated monthly using straight-line with no salvage value. A full month of depreciation will be charged in January. 7. $1,100 of the receivables from Decembers sales are collected. 8. All of the accounts payable from December are paid. 9. Mailed invoices for services performed for customers on account: $9,800. 10. Services are performed for cash customers: $7,200. 16. Wages for the first half of the month are paid on January 16. 20. The company receives $3,600 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): $4,500 30a. The last 2 weeks wages earned by employees are $1,200 per employee and will be paid on February 3. 30b. A $775 utility bill for January arrived. It is due on February 15. 4 Additional Information for adjusting entries at January 31: a. Supplies on hand on January 31 total $500. b. The company completed 45% 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. Adjust the prepaid asset accounts as needed e. Record January Depreciation