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[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
[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: $ 800 Accounts Payable 400 Stockholders' Equity: 200 Contributed Capital Retained Earnings Assets: Cash Accounts Receivable Supplies $ 100 $1,000 300 Total Assets $1,400 Total Liabilities & Stk. Equity $1,400 January Transactions for Francine's Fast Deliveries, Inc. (FFD) Date 1 Owners invest $17,000 of additional cash in the business. 2a Supplies are purchased for $500 on account. 2b Insurance is paid for 12 months beginning January 1: $5,880 (Record as an asset) 2c Rent is paid for 3 months beginning in January: $2,400 (Record as an asset) 2d Two employees are hired. Each employee will be paid $800 per month 3 FFD borrows $20,000 from 1st State Bank at 6% annual interest. A delivery van is purchased for cash. Including tax the total cost was $26,400. 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 $280 of the receivables from December's sales are collected. 8 $80 of the accounts payable from December are paid. 9 Performed services for customers on account. Mailed invoices totaling $8,000. 10 Services are performed for cash customers: $5,600. 16 Wages for the first half of the month are paid on January 16: $800. 20 The company receives $2,000 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): $3,200 20. The last 2 weeks wages earned by employees are $400 per employee and will be paid on February 3. 30b A $500 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 $140. h 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. Journal entry worksheet 2 3 4 5 6 Supplies on hand on January 31 total $140. Note: Enter debits before credits. Date General Journal Debit Credit Jan. 31a Record entry Clear entry View general journal Journal entry worksheet
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