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 $ 1,700 Accounts Payable $ 960 Accounts Receivable 1,050 Stockholders' Equity Supplies 850 Contributed Capital $2,000 Retained Earnings 640 Total Assets $3,600 Total Liabilities & Stk. Equity $3,600 January Transactions for Francine's Fast Deliveries, Inc. (FFD) Date 1 Owners invest $29,000 of additional cash in the business. 2a Supplies are purchased for $1150 on account 2b Insurance is paid for 12 months beginning January 1: $8,040 (Record as an asset) 2c Rent is paid for 3 months beginning in January: $4,350 (Record as an asset) 2d Two employees are hired. Each employee will be paid $1,640 per month 3 FFD borrows $33,000 from 1st State Bank at 6% annual interest. A delivery van is purchased for cash. Including tax the total cost was $55,200. 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 $735 of the receivables from December's sales are collected. 8 $768 of the accounts payable frorn December are paid. 9 Performed services for customers on account. Mailed invoices totaling $10,600. 10 Services are performed for cash customers: $7,420, 16 Wages for the first half of the month are paid on January 16: $1,640 20 The company receives $3,950 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): $4.240 308 The last 2 weeks wages earned by employees are $820 per employee and will be paid on February 3 305 A $1,040 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 $400. The company completed 60% of the deliveries for the customer who paid in advance on January 20 Interest is accrued for the bank loan. (Assume a full month for the 15 State Bank loan.) d. Record January depreciation e. Adjust the prepaid asset (Rent and Insurance) accounts as needed b 2. Post the beginning balances and January transactions to the T-Accounts Required information Cash Accounts Receivable Beg. bal. Beg. bal. End, bal. End, bal Supplies Prepaid Insurance Bog. bal Bog, bal End, bal End. bal. Prepaid Rent Equipment Beg. bal Beg. bal End. bal. End. bal. Accumulated Depreciation Accounts Payable Beg bal. Beg bal. End, bal End, bal. Unearned Revenue Notes Payable Beg bal Beg bal End, bal End bal Interest Payable Wages Payable Bogbal Bog bal Interest Payable Wages Payable Beg bal. Beg bal. End. bal. End, bal. Contributed Capital Retained Earnings Beg bal Beg bal End, bal End. bal Service Revenue Wages Expense Beg. bal Beg. bal. End, bal End, bal Utilities Expense Supplies Expanse Beg. bal. Beg. bal End, bal. End, bal Interest Expense Insurance Expense Beg bal Beg bal End, bal End, bal Rent Expense Depreciation Expense Beg bal Beg bal End, bal End, bal
