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 $ 875 Accounts Payable Accounts Receivable 450 Stockholders' Equity: Supplies 250 Contributed Capital Retained Earnings $ 250 $1,000 325 Total Assets $1,575 Total Liabilities & Stk. Equity $1,575 January Transactions for Francine's Fast Deliveries, Inc. (FFD) Date 1 Owners invest $18,000 of additional cash in the business. 2a Supplies are purchased for $550 on account. 2b Insurance is paid for 12 months beginning January 1: $6,060 (Record as an astet) 2c Rent is paid for 3 months beginning in January: $2,550 (Record as an asset) 2d Two employees are hired. Each employee will be paid $870 per month 3 FFD borrows $21,000 from 1st State Bank at 6% annual interest. LLLLLLLL W A ... - .. --- 2a 3 6 7 8 9 10 16 Two employees are nirea. Eacn employee will be paid $870 per month FFD borrows $21,000 from 1st State Bank at 6% annual interest. A delivery van is purchased for cash. Including tax the total cost was $28,800. 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 $315 of the receivables from December's sales are collected. $200 of the accounts payable from December are paid. Performed services for customers on account. Mailed invoices totaling $8,200. Services are performed for cash customers: $5,740. Wages for the first half of the month are paid on January 16: $870. The company receives $2,150 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): $3,280 The last 2 weeks wages earned by employees are $435 per employee and will be paid on February 3. A $545 utility bill for January arrived. It is due on February 15. 20 25 20 30a 30b Additional Information for adjusting entries at January 31: a. Supplies on hand on January 31 total $160. 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. 6. Prepare the adjusted trial balance, using the revised set of t-account balances. 5 of 6 Credit oped ook FAST DELIVERIES, INC. Adjusted Trial Balance January 31 Account Title Debit Cash Accounts Receivable Supplies Prepaid Rent Prepaid Insurance Equipment Accumulated Depreciation-Equipment Accounts Payable Unearned Revenue Wages Payable Interest Payable Notes Payable Contributed Capital Retained Earnings Service Revenue Wages Expenses In Itilitiae Evnenca nu... " Required information I . Accounts Payable Unearned Revenue Wages Payable Interest Payable S Notes Payable Contributed Capital Retained Earnings Service Revenue Wages Expenses Utilities Expense Supplies Expenses Depreciation Expense Insurance Expense Rent Expense Interest Expense Totals 0 $
