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[The following information applies to the questions displayed below.) Francine's Fast Deliverles, Inc. (FFD) was organized in December of 2011. It had limited activity in

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[The following information applies to the questions displayed below.) Francine's Fast Deliverles, 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 Deliverles, Inc. Balance Sheet at January 1, 2012 Assets: Liabilities: Cash $1,325 Accounts Payable Accounts Receivable 750 Stockholders' Equity Supplies 600 Contributed Capital Retained Earnings $ 665 $1,500 Total Assets $2,675 Total Liabilities & Stk. Equity $2,675 TE January Transactions for Francine's Fast Deliveries, Inc. (FFD) Date 1 Owners Invest $24,000 of additional cash in the business. 2a Supplies are purchased for $850 on account. 2b Insurance is paid for 12 months beginning January 1: $7,140 (Record as an asset) 20 Rent is paid for 3 months beginning in January: $3,450 (Record as an asset) 20 Two employees are hired. Each employee will be paid $1,290 per month 3 FFD borrows $27,000 from 1st State Bank at 6% annual interest A delivery van is purchased for cash. Including tax the total cost was $43,200. 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 $525 of the receivables from December's sales are collected. 8 $532 of the accounts payable from December are paid. 9 Performed services for customers on account. Malled Invoices totaling $9,400, 10 Services are performed for cash customers: $6,580. 16 Wages for the first half of the month are paid on January 16: $1,290. 20 The company receives $3,050 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): $3,760 The last 2 weeks wages earned by employees are $645 per employee and will be paid on February 3. 30a

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