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 Liabilities: $ 1,850 Accounts Payable 1,150 Stockholders' Equity: 950 Contributed Capital Retained Earnings Assets: Cash Accounts Receivable Supplies $ 1,260 $2,000 690 Total Assets $3,950 Total Liabilities & Stk. Equity $3,950 January Transactions for Francine's Fast Deliveries, Inc. (FFD) Date 1 Owners invest $31,000 of additional cash in the business. 2a Supplies are purchased for $1,250 on account. 2b Insurance is paid for 12 months beginning January 1: $8,400 (Record as an asset) 2c Rent is paid for 3 months beginning in January: $4,650 (Record as an asset) 2d Two employees are hired. Each employee will be paid $1,780 per month 3 FFD borrows $35,000 from 1st State Bank at 6% annual interest. A delivery van is purchased for cash. Including tax the total cost was $60,000. 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 $805 of the receivables from December's sales are collected. 8 $1,008 of the accounts payable from December are paid. 9 Performed services for customers on account. Mailed invoices totaling $11,000. 10 Services are performed for cash customers: $7,700. 16 Wages for the first half of the month are paid on January 16: $1,780. The company receives $4,250 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): $4,400 The last 2 weeks wages earned by employees are $890 per employee and will 30a be paid on February 3. 30b A $1,130 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 $440. 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. Rent Expense Depreciation Expense Beg. bal. 0 0 Beg. bal. 0 End. bal. End. bal. 6. Prepare the adjusted trial balance, using the revised set of t-account balances. X Answer is complete but not entirely correct. FAST DELIVERIES, INC. Adjusted Trial Balance January 31 Account Title Debit Credit Cash $ 9,167 6,945 Accounts Receivable 440 Supplies Prepaid Rent Prepaid Insurance 7,700 X 3,100 X 60,000 Equipment Accumulated Depreciation- Equipment Accounts Payable 1,250 2,632 1,700 Unearned Revenue 35,000 X 1,780 X Wages Payable Interest Payable Notes Payable Contributed Capital Retained Earnings 175 x 33,000 690 Service Revenue 21,250 Wages Expenses Utilities Expense 3,560 1,760 Supplies Expenses 1,250 X Depreciation Expense 700 x 1,250 x 700 x Supplies Expenses Depreciation Expense Insurance Expense Rent Expense Interest Expense 1,550 X 175 x 1,130 X $ 97,477 $ Totals 97,477