Questions 1-6 Project 1: Review of Accounting Cycle The following information applies to the questions displayed below Francine's Fast Inc. (FFD) was organized in December of 2011. It had limite activity in 2011. The resulting balance sheet at the beginning of 2012 is provided below: rancine's Fast Deliveries, In Balance Sheet at January 1, 2012 Liabilities: Assets 2,010 $2,225 Accounts payable Cash 1.400 Stockholders' Equity Accounts Receivable $2,000 1,200 Contributed Capital Supplies 815 Retained Earnings $4,825 $4,825 Total Liabilities & Stk. Equity Total Assets January Transactions for Francine's Fast Deliveries, Inc. (FFD) Date 1 owners invest $36,000 of additional cash in the business 2a Supplies are purchased for $1,500 account. (Record as an asset is paid beginning January $9,30o 2c Rent is paid for 3 months beginning in January: $5,400 (Record as an asse) 2d Two employees are hired. Each employee will be paid $2.130 per month 3 FED borrows $40,000 from 1st State Bank at 6% annual interest. 6 A delivery van is purchased for cash. Including tax the total cost was $72,000. 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 $980 of the receivables from December's sales are collecte 8 $1,608 of the accounts payable from December are paid 9 Performed services for customers on account. Mailed invoices totaling $12,000 10 Services are performed for cash customers: $8,400 16 Wages for the first half of the month are paid on January 16: $2,130 20 The company receives $5,000 from a customer for an advance order for services to be provided in January and February January 9 transaction): $4,8oo 25 Collections from customers on account (s 30a The last 2 weeks wages earned by employees are $1,065 per employee and will be paid on February 3, 30b A $1,355 utility bill for January arrived. It is due on February 15. Additional Information for adjusting e at January 31 Supplies on hand on January 31 total $540 b. The company completed 60% of the deliveries for the customer who paid in advance on January 20 nterest 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