Francine's Fast Deliveries, Inc. (FFD) was organized in December of 2011. It had limited activity in...

  

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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 Assets: Cash Accounts Receivable Liabilities: Accounts Payable Stockholders' Equity: Contributed Capital Retained Earnings $ 1,010 $1,475 900 700 Supplies $1,500 565 Total Assets $3,075 Total Liabilities & Stk. Equity $3,075 January Transactions for Francine's Fast Deliveries, Inc. (FFD) Date 1 Owners invest $26.000 of additional cash in the business. 2a Supplies are purchased for $950 on account. 2b Insurance is paid for 12 months beginning January 1: $7,500 (Record as an asset) 2c Rent is paid for 3 months beginning in January: $3,750 (Record as an asset) 2d Two employees are hired. Each employee will be paid $1,430 per month 3 FFD borrows $29.000 from 1st State Bank at 6% annual interest. A delivery van is purchased for cash. Including tax the total cost was $48,000. 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 $630 of the receivables from December's sales are collected. 8 $808 of the accounts payable from December are paid. 9 Performed services for customers on account. Mailed invoices totaling $9,800. Services are performed for cash customers: $6,860. 16 Wages for the first half of the month are paid on January 16: $1,430. The company receives $3,350 from a customer for an advance order for services 10 20 to be provided in January and February. 25 Collections from customers on account (see January 9 transaction): $3,920 The last 2 weeks wages earned by employees are $715 per employee and will be 30a paid on February 3. 30b A $905 utility bill for January arived. It is due on February 15. Additional Information for adjusting entries at January 31: a. Supplies on hand on January 31 total $330. The company completed 60% of the deliveries for the customer who paid in advance b. 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. Required: Record the transactions for January, the first full month of operations. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account fleld.) 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 Assets: Cash Accounts Receivable Liabilities: Accounts Payable Stockholders' Equity: Contributed Capital Retained Earnings $ 1,010 $1,475 900 700 Supplies $1,500 565 Total Assets $3,075 Total Liabilities & Stk. Equity $3,075 January Transactions for Francine's Fast Deliveries, Inc. (FFD) Date 1 Owners invest $26.000 of additional cash in the business. 2a Supplies are purchased for $950 on account. 2b Insurance is paid for 12 months beginning January 1: $7,500 (Record as an asset) 2c Rent is paid for 3 months beginning in January: $3,750 (Record as an asset) 2d Two employees are hired. Each employee will be paid $1,430 per month 3 FFD borrows $29.000 from 1st State Bank at 6% annual interest. A delivery van is purchased for cash. Including tax the total cost was $48,000. 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 $630 of the receivables from December's sales are collected. 8 $808 of the accounts payable from December are paid. 9 Performed services for customers on account. Mailed invoices totaling $9,800. Services are performed for cash customers: $6,860. 16 Wages for the first half of the month are paid on January 16: $1,430. The company receives $3,350 from a customer for an advance order for services 10 20 to be provided in January and February. 25 Collections from customers on account (see January 9 transaction): $3,920 The last 2 weeks wages earned by employees are $715 per employee and will be 30a paid on February 3. 30b A $905 utility bill for January arived. It is due on February 15. Additional Information for adjusting entries at January 31: a. Supplies on hand on January 31 total $330. The company completed 60% of the deliveries for the customer who paid in advance b. 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. Required: Record the transactions for January, the first full month of operations. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account fleld.)

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