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 $ 1,475 Accounts Payable $ 1,010 Accounts Receivable 900 Stockholders' Equity Supplies 700 Common Stock $1,500 Retained Earnings 565 Total Assets $3,075 Total Liabilities & Stk. Equity $3,075 9 January Transactions for Francine's Fast Deliveries, Inc. (FFD) Date 1 Owners invest $26,000 of additional cash in the business 2a Supplies are purchased for $950 on account 2b Insurance is paid for 12 months beginning January 1: $7,500 (Record as an asset) 2c Rent is paid for 3 months beginning in January: $3,750 (Record as an asset) 20 Two employees are hired. Each employee will be paid $1,430 per month 3 FFD borrows $29.000 from 1st State Bank at 6% annual interest A delivery van is purchased for cash. Including tax the total cost was $48,000. 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 $630 of the receivables from December's sales are collected 8 $808 of the accounts payable from December are paid. Performed services for customers on account. Mailed invoices totaling $9,800 10 Services are performed for cash customers: $6,860 16 Wages for the first half of the month are paid on January 16: $1,430, 20 The company receives $3,350 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); $3,920 30a The last 2 weeks wages earned by employees are $715 per employee and will be paid on February 3 300 A $905 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 $330 The company completed 60% of the deliveries for the customer who paid in advance b. 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 7 Prepare end-of-January financial statements. (Balance Sheet only. items to be deducted must be indicated with a negative amount.) FAST DELIVERIES, INC. Income Statement FAST DELIVERIES, INC. Statement of Retained Earnings For the Month Ended January 31 Retained Earnings, Beginning of Period Retained Earings, End of Period FAST DELIVERIES, INC. Balance Sheet At January 31 Assets Liabilities Current Assets Current Liabilities Total Current Assets Total Current Liabilities Equipment, not Total liabilities Stockholders' Equity Total Stockholders' Equity Total Liabilities and Stockholders' Equity Total Assets