Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

[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

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
[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: January Transactions for Francine's Fast Deliveries, Inc. (FFD) Date 1 Dumpre invest \$19 nn nf adritional cash in the hissinese Date 1 Owners invest $19,000 of additional cash in the business. 2a Supplies are purchased for $600 on account. 2b Insurance is paid for 12 months beginning January 1:$6,240 (Record as an asset) 2c Rent is paid for 3 months beginning in January: $2,700 (Record as an asset) 2d Two employees are hired. Each employee will be paid $940 per month 3 FFD borrows $22,000 from 1st State Bank at 6% annual interest. A delivery van is purchased for cash. Including tax the total cost was $31,200. 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$350 of the receivables from December's sales are collected. 8 \$320 of the accounts payable from December are paid. 9 Performed services for customers on account. Mailed invoices totaling $8,400. 10 Services are performed for cash customers: $5,880. 16 Wages for the first half of the month are paid on January 16: $940. 20 The company receives $2,300 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): $3,360 30a The last 2 weeks wages earned by employees are $470 per employee and will be paid on February 3. 30bA$590 utility bill for January arrived. It is due on February 15. 7$350 of the receivables from December's sales are collected. 8$320 of the accounts payable from December are paid. 9 Performed services for customers on account. Mailed invoices totaling $8,400. 10 Services are performed for cash customers: $5,880. 16 Wages for the first half of the month are paid on January 16: $940. 20 The company receives $2,300 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): $3,360 30 a The last 2 weeks wages earned by employees are $470 per employee and will be paid on February 3. 30 b A $590 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 $180. b. 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. 4.-5. Analyze the accounts and prepare the adjusting entries required using the additional information provided. Post the adjusting entry activity to the T-Accounts in Requirement \#2. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Journal entry worksheet 23456 Journal entry worksheet The company completed 60% of the deliveries for the customer who paid in advance on January 20. Note: Enter debits before credits. Journal entry worksheet Interest is accrued for the bank loan. (Assume a full month for the 1st State Bank loan.) Note: Enter debits before credits. Journal entry worksheet Journal entry worksheet Adjust the prepaid asset, Insurance account as needed. Note: Enter debits before credits. Journal entry worksheet

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Performance Audit Report Property Assessment Division Department Of Revenue

Authors: Montana Legislature Office Of The L

1st Edition

1019260211, 978-1019260210

More Books

Students also viewed these Accounting questions