Fast Delverles, Inc. (FFD) was organized in December of 2011. It had limited act
ID: 2342355 • Letter: F
Question
Fast Delverles, 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 Balance Sheet Cash $ 1,775 Payable 100 Stockholders Equity 900 Co $2,000 665 Supples Earnings Equity 3,775 January Transactions for Francine's Fast Dellveries, Inc. (FFDI 2a Supp es are purchased for $1200 on account 2b Insurance is paid for 12 months beginning January 1: $8,220 (Record as an asset) 2c Rent is paid for 3 months beginning in January. $4,500 (Record as an asset 2d Two 3 FFD 534,000 from 1st State Bank at 6% annual interest. 6 A delvery van is for cash. Including tax the total cost was $57,600. It will be used for 4 years and will be depreclated monthly using straight-line with no salvage value. A full month of 7 $770 of the receivables from 8 $888 of the accounts payable from December are paid. will be Malled invoices totaling $t0,800. $7.560. services for customers on a 16 Wages for the first half of the month are paid on January 16: $1710 20 The company receives $4,100 from a customer for an advance order for services to be provided in 25 30a The last 2 weeks wages earned by employees are $855 per employee and will be paid on February A $1,085 utity bill for January arrived, t is due on February 15. for adjusting entries at January 31: Supplies on hand on January 31 total $420. The company completed 60% or the deliveries for the customer who paid in advance on January 20. a. C. Interest is for the bank loan. (Assume a fuil month for the 1s: State Bank loan)Explanation / Answer
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Fast Deliveries Inc. Income Statement For the month ended January 31, 2012 $ $ Service Revenue 20,820 Less: Operating Expenses Wages Expense 2,565 Supplies Expense 1,680 Rent Expense 1,500 Insurance Expense 685 Utilities Expense 1,085 Depreciation Expense 1,200 8,715 Income from Operations 12,105 Less: Interest Expense 170 Net Income $ 11,935Related Questions
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