Project 1: Part 2

2.	Post the beginning balances and January transactions to the T-Accounts.

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	$	1,625		Accounts Payable	$	1,310
Accounts Receivable		1,000		Stockholders Equity:
Supplies		800		Contributed Capital	$	1,500
				Retained Earnings		615
Total Assets	$	3,425		Total Liabilities & Stk. Equity	$	3,425

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

Date
1	Owners invest $28,000 of additional cash in the business.
2a	Supplies are purchased for $1,100 on account.
2b	Insurance is paid for 12 months beginning January 1: $7,860 (Record as an asset)
2c	Rent is paid for 3 months beginning in January: $4,050 (Record as an asset)
2d	Two employees are hired. Each employee will be paid $1,570 per month
3	FFD borrows $32,000 from 1stState Bank at 6% annual interest.
6	A delivery van is purchased for cash.Including tax the total cost was $52,800. 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	$700 of the receivables from Decembers sales are collected.
8	$1,048 of the accounts payable from December are paid.
9	Performed services for customers on account.Mailed invoices totaling $10,200.
10	Services are performed for cash customers: $7,140.
16	Wages for the first half of the month are paid on January 16: $1,570.
20	The company receives $3,800 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): $4,080
30a	The last 2 weeks wages earned by employees are $785 per employee and will be paid on February 3.
30b	A $995 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 $380.
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 1stState Bank loan.)
d.	Record January depreciation.
e.	Adjust the prepaid asset (Rent and Insurance) accounts as needed.