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 $ 2,150 Accounts Payable $ 1,860 Accounts Receivable 1,350 Stockholders' Equity: Supplies 1.150 Common Stock $2,000 Retained Earnings 790 Total Assets $4,650 Total Liabilities & Stk. Equity $4,650 January Transactions for Francine's Fast Deliveries, Inc. (FFD) January Transactions for Francine's Fast Deliveries, Inc. (FFD) Date 1 Owners invest $35,000 of additional cash in the business. 2a Supplies are purchased for $1,450 on account. 2b Insurance is paid for 12 months beginning January 1: $9,120 (Record as an asset) 2c Rent is paid for 3 months beginning in January: $5,250 (Record as an asset) 2d Two employees are hired. Each employee will be paid $2,060 per month 3 FFD borrows $39,000 from 1st State Bank at 6% annual interest. A delivery van is purchased for cash. Including tax the total cost was $69,600. 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 $945 of the receivables from December's sales are collected. 8 $1,488 of the accounts payable from December are paid. 9 Performed services for customers on account. Mailed invoices totaling $11,800. 10 Services are performed for cash customers: $8,260. 16 Wages for the first half of the month are paid on January 16: $2,060. The company receives $4,850 from a customer for an advance order for services 20 to be provided in January and February. 25 Collections from customers on account (see January 9 transaction): $4,720 30a The last 2 weeks wages earned by employees are $1,030 per employee and will be paid on February 3. 300 A $1,310 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 $520. 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. Adiust the prepaid asset (Rent and Insurancel accounts as needed. Prepare end-of-January financial statements. (Balance Sheet only, items to be 7 deducted must be indicated with a negative amount.) FAST DELIVERIES, INC. Income Statement $ 0 Required information FAST DELIVERIES, INC. Statement of Retained Earnings For the Month Ended January 31 Retained Earnings, Beginning of Period Retained Earnings, End of Period FAST DELIVERIES, INC Balance Sheet At January 31 Assets Liabilities Current Assets Current Liabilities 0 Total Current Assets Total Current Liabilities 0 Total liabilities 0 Equipment, net Stockholders' Equity 0 Total Stockholders' Equity Total Liabilities and Stockholders' Equity $ 0 0 Total Assets C Required information 520 3,500 8,360 69,600 Supplies Prepaid Rent Prepaid Insurance Equipment Accumulated Depreciation Equipment Accounts Payable Deferred Revenue Wages Payable Interest Payable Notes Payable Common Stock Retained Earnings Service Revenue Wages Expenses Utilities Expense Supplies Expenses Depreciation Expense Insurance Expense Rent Expense Interest Expense Totals 1,450 3,132 1,940 2,060 195 39,000 37,000 790 22,970 4,120 1,310 2,080 1,450 760 1,750 195 $ 108,537 $ 108,537 8
