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--- Only Need T - Accounts --- Francine's Fast Deliveries, Inc. (FFD) was organized in December of 2011. It had limited activity in 2011. The
--- Only Need T - Accounts ---
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 $1,100 Accounts Payable $ 725 Accounts Receivable Supplies 600 Stockholders' Equity: 450 Contributed Capital Retained Earnings $1,000 425 Total Assets $2,150 Tota Liabilities & Stk. Equity $2,150 January Transactions for Francine's Fast Deliveries, Inc. (FFD) ate 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. 6 A delivery van is purchased for cash. Including tax the total cost was $36,000. 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 $420 of the receivables from December's sales are collected. 8 $580 of the accounts payable from December are paid. 9 Performed services for customers on account. Mailed invoices totaling $8,800. 10 Services are performed for cash customers: $6,160. Wages for the first half of the month are paid on January 16: $1,080. The company receives $2,600 from a customer for an advance order for services to be provided in January and February. Collections from customers on account (see January 9 transaction): $3,520 The last 2 weeks wages earned by employees are $540 per employee and will be paid on February 16 20 25 30a 30b A $680 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 $230. 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 neededStep by Step Solution
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