Prepare the adjusted trial balance, using the revised set of t-account balances.

Prepare an unadjusted trial balance using the T-Account balances.

Post the beginning balances and January transactions to the T-Accounts.

Francines 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:

Francines Fast Deliveries, Inc. Balance Sheet at January 1, 2012 Assets: Liabilities: Cash $ 1,325 Accounts Payable $ 665 Accounts Receivable 750 Stockholders Equity: Supplies 600 Contributed Capital $ 1,500 Retained Earnings 510 Total Assets $ 2,675 Total Liabilities & Stk. Equity $ 2,675

January Transactions for Francines Fast Deliveries, Inc. (FFD)

Date 1 Owners invest $24,000 of additional cash in the business. 2a Supplies are purchased for $850 on account. 2b Insurance is paid for 12 months beginning January 1: $7,140 (Record as an asset) 2c Rent is paid for 3 months beginning in January: $3,450 (Record as an asset) 2d Two employees are hired. Each employee will be paid $1,290 per month 3 FFD borrows $27,000 from 1st State Bank at 6% annual interest. 6

A delivery van is purchased for cash. Including tax the total cost was $43,200. 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 $525 of the receivables from Decembers sales are collected. 8 $532 of the accounts payable from December are paid. 9 Performed services for customers on account. Mailed invoices totaling $9,400. 10 Services are performed for cash customers: $6,580. 16 Wages for the first half of the month are paid on January 16: $1,290. 20

The company receives $3,050 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): $3,760 30a

The last 2 weeks wages earned by employees are $645 per employee and will be paid on February 3.

30b A $815 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 $290. 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 needed.