4.-5.Analyze the accounts and prepare the adjusting entries required using the additional information provided. Post the...
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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.) View transaction list Journal entry worksheet < 1 2 3 4 Date Jan. 31a Supplies on hand on January 31 total $310. Note: Enter debits before credits. 5 General Journal 6 Debit Credit > 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: Assets: Cash Accounts Receivable Supplies Total Assets Francine's Fast Deliveries, Inc. Balance Sheet at January 1, 2012 22223 2c Liabilities: $1,400 850 650 Accounts Payable Stockholders' Equity: Contributed Capital Retained Earnings $2,900 Total Liabilities & Stk. Equity $2,900 January Transactions for Francine's Fast Deliveries, Inc. (FFD) Date 1 Owners invest $25,000 of additional cash in the business. 2a Supplies are purchased for $900 on account. 2b Insurance is paid for 12 months beginning January 1: $7,320 (Record as an asset) Rent is paid for 3 months beginning in January: $3,600 (Record as an asset) 2d Two employees are hired. Each employee will be paid $1,360 per month $860 $1,500 540 FFD borrows $28,000 from 1st State Bank at 6% annual interest. A delivery van is purchased for cash. Including tax the total cost was $45,600. It 6 will be used for 4 years and will be depreciated monthly using straight-line with 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. $595 of the receivables from December's sales are collected. 7 8 $688 of the accounts payable from December are paid. 9 Performed services for customers on account. Mailed invoices totaling $9,600. 10 Services are performed for cash customers: $6,720. 16 Wages for the first half of the month are paid on January 16: $1,360. 20 The company receives $3,200 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): $3,840 30a The last 2 weeks wages earned by employees are $680 per employee and will be paid on February 3. 30b A $860 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 $310. 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. Beg. bal. Jan. 1 Jan. 3 Jan. 7 Jan. 10 Jan. 20 Jan. 25 End. bal. Beg. bal. Jan. 2a End. bal. Beg. bal. Jan. 2c End. bal. Cash 1,400 25,000 28,000 595 6,720 3,200 3,840 10,187 Supplies 650 900 310 7,320 Jan. 2b 3,600 Jan. 2c 45,600 Jan. 6 688 Jan. 8 1,360 Jan. 16 2,400 0 1,240 Jan. 31a Prepaid Rent 0 3,600 0 1,200 Jan. 31e Beg. bal. Jan. 9 End. bal. Beg. bal. Jan. 2b End. bal. Beg. bal. Jan. 6 End. bal. Accounts Receivable 850 9,600 6,015 Prepaid Insurance 0 7,320 6,710 Equipment 0 45,600 595 Jan. 7 3,840 Jan. 25 45,600 0 610 Jan. 31e Account Title Cash Accounts Receivable Supplies Prepaid Rent Prepaid Insurance Equipment Accumulated Depreciation Equipment Accounts Payable Unearned Revenue Wages Payable Interest Payable Notes Payable Contributed Capital Retained Earnings Service Revenue Adjusted Trial Balance January 31 Wages Expenses Utilities Expense Supplies Expenses Depreciation Expense Insurance Expense Debit Credit 7. Prepare end-of-January financial statements. (Balance Sheet only, items to be deducted must be indicated with a negative amount.) FAST DELIVERIES, INC. Income Statement $ 0 Beg. bal. End. bal. Beg. bal. Jan. 30b End. bal. Beg. bal. Jan. 31c End. bal. Beg. bal. Jan. 31e Service Revenue 0 0 860 0 9,600 Jan. 9 6,720 Jan. 10 Utilities Expense 860 16,320 Interest Expense Rent Expense 0 Jan. 31b Beg. bal. Jan. 16 Jan. 30a End. bal. Beg. bal. Jan. 31a End. bal. Beg. bal. Jan. 31e End. bal. Beg. bal. Jan. 31d Wages Expense 0 1,360 1,360 2,720 Supplies Expense 0 Insurance Expense 0 0 Depreciation Expense Beg. bal. End. bal. Beg. bal. Jan. 31b End. bal. Beg. bal. End. bal. Beg. bal. Accumulated Depreciation 0 Unearned Revenue 0 0 Interest Payable 0 0 3,200 Jan. 20 3,200 Contributed Capital Jan. 31d 0 Jan. 31c 25.000 Jan 1 Beg. bal. Jan. 8 End. bal. Beg. bal. End. bal. Beg. bal. End. bal. Beg. bal. Accounts Payable 688 1,072 Notes Payable 900 Jan. 2a 860 Jan. 30b 28,000 Jan. 3 28,000 Wages Payable 1,360 Jan. 30a 1,360 Retained Earnings Account Title Cash Accounts Receivable Supplies Prepaid Insurance Prepaid Rent Unadjusted Trial Balance January 31 Equipment Accumulated Depreciation-Equipment Accounts Payable Unearned Revenue Notes Payable Wages Payable Interest Payable Contributed Capital Retained Earnings Service Revenue Wages Expenses Supplies Expenses Depreciation Expense Interest Expense Utilities Expense Debit 860 Credit 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.) View transaction list Journal entry worksheet < 1 2 3 4 Date Jan. 31a Supplies on hand on January 31 total $310. Note: Enter debits before credits. 5 General Journal 6 Debit Credit > 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: Assets: Cash Accounts Receivable Supplies Total Assets Francine's Fast Deliveries, Inc. Balance Sheet at January 1, 2012 22223 2c Liabilities: $1,400 850 650 Accounts Payable Stockholders' Equity: Contributed Capital Retained Earnings $2,900 Total Liabilities & Stk. Equity $2,900 January Transactions for Francine's Fast Deliveries, Inc. (FFD) Date 1 Owners invest $25,000 of additional cash in the business. 2a Supplies are purchased for $900 on account. 2b Insurance is paid for 12 months beginning January 1: $7,320 (Record as an asset) Rent is paid for 3 months beginning in January: $3,600 (Record as an asset) 2d Two employees are hired. Each employee will be paid $1,360 per month $860 $1,500 540 FFD borrows $28,000 from 1st State Bank at 6% annual interest. A delivery van is purchased for cash. Including tax the total cost was $45,600. It 6 will be used for 4 years and will be depreciated monthly using straight-line with 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. $595 of the receivables from December's sales are collected. 7 8 $688 of the accounts payable from December are paid. 9 Performed services for customers on account. Mailed invoices totaling $9,600. 10 Services are performed for cash customers: $6,720. 16 Wages for the first half of the month are paid on January 16: $1,360. 20 The company receives $3,200 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): $3,840 30a The last 2 weeks wages earned by employees are $680 per employee and will be paid on February 3. 30b A $860 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 $310. 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. Beg. bal. Jan. 1 Jan. 3 Jan. 7 Jan. 10 Jan. 20 Jan. 25 End. bal. Beg. bal. Jan. 2a End. bal. Beg. bal. Jan. 2c End. bal. Cash 1,400 25,000 28,000 595 6,720 3,200 3,840 10,187 Supplies 650 900 310 7,320 Jan. 2b 3,600 Jan. 2c 45,600 Jan. 6 688 Jan. 8 1,360 Jan. 16 2,400 0 1,240 Jan. 31a Prepaid Rent 0 3,600 0 1,200 Jan. 31e Beg. bal. Jan. 9 End. bal. Beg. bal. Jan. 2b End. bal. Beg. bal. Jan. 6 End. bal. Accounts Receivable 850 9,600 6,015 Prepaid Insurance 0 7,320 6,710 Equipment 0 45,600 595 Jan. 7 3,840 Jan. 25 45,600 0 610 Jan. 31e Account Title Cash Accounts Receivable Supplies Prepaid Rent Prepaid Insurance Equipment Accumulated Depreciation Equipment Accounts Payable Unearned Revenue Wages Payable Interest Payable Notes Payable Contributed Capital Retained Earnings Service Revenue Adjusted Trial Balance January 31 Wages Expenses Utilities Expense Supplies Expenses Depreciation Expense Insurance Expense Debit Credit 7. Prepare end-of-January financial statements. (Balance Sheet only, items to be deducted must be indicated with a negative amount.) FAST DELIVERIES, INC. Income Statement $ 0 Beg. bal. End. bal. Beg. bal. Jan. 30b End. bal. Beg. bal. Jan. 31c End. bal. Beg. bal. Jan. 31e Service Revenue 0 0 860 0 9,600 Jan. 9 6,720 Jan. 10 Utilities Expense 860 16,320 Interest Expense Rent Expense 0 Jan. 31b Beg. bal. Jan. 16 Jan. 30a End. bal. Beg. bal. Jan. 31a End. bal. Beg. bal. Jan. 31e End. bal. Beg. bal. Jan. 31d Wages Expense 0 1,360 1,360 2,720 Supplies Expense 0 Insurance Expense 0 0 Depreciation Expense Beg. bal. End. bal. Beg. bal. Jan. 31b End. bal. Beg. bal. End. bal. Beg. bal. Accumulated Depreciation 0 Unearned Revenue 0 0 Interest Payable 0 0 3,200 Jan. 20 3,200 Contributed Capital Jan. 31d 0 Jan. 31c 25.000 Jan 1 Beg. bal. Jan. 8 End. bal. Beg. bal. End. bal. Beg. bal. End. bal. Beg. bal. Accounts Payable 688 1,072 Notes Payable 900 Jan. 2a 860 Jan. 30b 28,000 Jan. 3 28,000 Wages Payable 1,360 Jan. 30a 1,360 Retained Earnings Account Title Cash Accounts Receivable Supplies Prepaid Insurance Prepaid Rent Unadjusted Trial Balance January 31 Equipment Accumulated Depreciation-Equipment Accounts Payable Unearned Revenue Notes Payable Wages Payable Interest Payable Contributed Capital Retained Earnings Service Revenue Wages Expenses Supplies Expenses Depreciation Expense Interest Expense Utilities Expense Debit 860 Credit
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Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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