[The following information applies to the questions displayed below.]

Francines 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:

Francines Fast Deliveries, Inc. Balance Sheet at January 1, 2012
Assets:				Liabilities:
Cash	$	2,225		Accounts Payable	$	2,010
Accounts Receivable		1,400		Stockholders Equity:
Supplies		1,200		Common Stock	$	2,000
				Retained Earnings		815
Total Assets	$	4,825		Total Liabilities & Stk. Equity	$	4,825

January Transactions for Francines Fast Deliveries, Inc. (FFD)

Date
1	Owners invest $36,000 of additional cash in the business.
2a	Supplies are purchased for $1,500 on account.
2b	Insurance is paid for 12 months beginning January 1: $9,300 (Record as an asset)
2c	Rent is paid for 3 months beginning in January: $5,400 (Record as an asset)
2d	Two employees are hired. Each employee will be paid $2,130 per month
3	FFD borrows $40,000 from 1st State Bank at 6% annual interest.
6	A delivery van is purchased for cash. Including tax the total cost was $72,000. It 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	$980 of the receivables from Decembers sales are collected.
8	$1,608 of the accounts payable from December are paid.
9	Performed services for customers on account. Mailed invoices totaling $12,000.
10	Services are performed for cash customers: $8,400.
16	Wages for the first half of the month are paid on January 16: $2,130.
20	The company receives $5,000 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): $4,800
30a	The last 2 weeks wages earned by employees are $1,065 per employee and will be paid on February 3.
30b	A $1,355 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 $540.
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.)

Ref Ref Ref Ref E b $ Date Jan 1, 2012 Jan 9, 2012 Accounts Receivable Debit Date $ 1,400 Jan 7, 2012 $ 12,000 Jan 25, 2012 $ $ Credit 980 4,800 Date Jan 1, 2012 Jan 1, 2012 Jan 3, 2012 Jan 7, 2012 Jan 10, 2012 Jan 20, 2012 Jan 25, 2012 Date Jan 2, 2012 Jan 2, 2012 Jan 6, 2012 Jan 8, 2012 Jan 16, 2012 Credit $ 9,300 $ 5,400 $ 72,000 $ 1,608 $ 2,130 Cash Debit 2,225 36,000 40,000 980 8,400 5,000 4,800 $ $ $ $ $ Jan 31, 2012 Bal. $ 6,967 Jan 31, 2012 Bal. $ 7,620 Ref Ref Date Jan 1, 2012 Jan 2, 2012 Supplies Debit Date 1,200 Jan 31, 2012 1,500 Credit $ 2,160 Date Jan 2, 2012 Prepaid Insurance Ref Debit Date Ref bs 9,300 Jan 31, 2012 e0 $ Credit 775 $ $ a Jan 31, 2012 Bal. $ 540 Jan 31, 2012 Bal. $ 8,525 Ref Prepaid Rent Debit Date Ref Credit 5,400 Jan 31, 2012 e) $ 1,800 Ref Date Jan 2, 2012 Ref Delivery Van Debit Date $ 72,000 Credit Date Jan 6, 2012 $ Jan 31, 2012 Bal. $ 3,600 Jan 31, 2012 Bal. $ 72,000 Ref Ref Date Ref Ref Date Jan 8, 2012 Accounts Payable Debit Date $ 1,608 Jan 1, 2012 Jan 2, 2012 Jan 30, 2012 Credit $ 2,010 $ 1,500 $ 1,355 Common Stock Debit Date Jan 1, 2012 Jan 1, 2012 Credit $ 2,000 $ 36,000 b Jan 31, 2017 Bal. $ 3,257 Jan 31, 201 Bal. $ 38,000 Date Ref Retained Earning Debit Date Jan 1, 2012 Ref Date Credit $ 815 6% Loan from 1St State Bank Ref Debit Date Ref Jan 3, 2012 Credit $ 40,000 Jan 31, 2017 Bal. $ 815 Jan 31, 201 Bal. $ 40,000 Date Ref Debit Ref Ref Date Ref Credit Date Jan 9, 2012 Jan 10, 2012 Jan 31, 2012 Credit $ 12,000 $ 8,400 $ 3,000 Date Jan 16, 2012 Jan 30, 2012 Debit $ 2,130 $ 2,130 a b Jan 31, 2017 Bal. $23,400 Jan 31, 2012 Bal. $ 4,260 Ref Unearned Revenue Debit Date $ 3,000 Jan 20, 2012 Date Ref Date Jan 31, 2012 Ref b Ref Wages Payable Debit Date Jan 30, 2012 Credit $ 5,000 Credit $ 2130 a Jan 31, 2017 Bal. $ 2,000 Jan 31, 201 Bal. $ $ 2,130 Ref Utilities Expenses Debit Date $ 1,355 Credit Date Jan 30, 2012 Date Ref b Accumulated Depreciation - Delivery Van Ref Debit Date Ref Jan 31, 2012 d $ , Credit 1,500 Jan 31, 2012 Bal. $ 1,355 Jan 31, 201 Bal. $ 1,500 -! Ref Supplies Expense Debit Date $ 2,160 Ref Credit Ref Date Jan 31, 2012 Ref Interest Expense Debit Date $ 200 Credit Date Jan 31, 2012 Jan 31, 2012 Bal. $ 2,160 Jan 31, 2012 Bal. , $ $ 200 Date Ref Interest Payable Debit Date Jan 31, 2012 Ref Ref Credit $ 200 Depreciation Ref Debit Date d $ 1,500 Credit Date Jan 31, 2012 Jan 31, 2012 $ 200 Jan 31, 2012 Bal. $ 1,500 Ref Insurance Expense Debit Date $ 775 Credit Date Jan 31, 2012 Ref Ref e) Credit Rent Expense Debit Date 1,800 Date Jan 31, 2012 Ref e $ Jan 31, 2012 Bal. $ 775 Jan 31, 2012 Bal. $ 1,800 Trial Balance as on Jan 31, 2012 Particulars Dr. Cr. Cash $ 6,967 Accounts Receivable $ 7,620 Supplies $ 540 Delivery Van $ 72,000 Prepaid Insurance $ 8,525 Prepaid Rent $ 3,600 Accounts Payables $ 3,257 Interest Payable $ 200 Wages Payable $ 2,130 Unearned Revenue $ 2,000 6% Loan from 1st State Bank $ 40,000 Accumulated Depreciation - Delivery Van 1,500 Common Stock $ 38,000 Retained Earnings $ 815 Supplies Expenses $ 2,160 Insurance Expense $ 775 Rent Expense $ 1,800 Utlities Expense $ 1,355 Wages $ 4,260 Depreciation $ 1,500 Interest Expense $ 200 Service Revenue $ 23,400 $ 111,302 $ 111,302 $