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D comprehensive Problem X --) ? | ezto.rnheducat tpx? 0.5754762869005311 1532561

ID: 2430837 • Letter: D

Question

D comprehensive Problem X --) ? | ezto.rnheducat tpx? 0.5754762869005311 1532561620112 D) was organzed in December of 2011 t had limted actnuty in 2011 The Francine's Fast Deliveries, Inc. (FF resulang belance sheet at the beginning of 2012 Is provided below Balance Sheet s 1160 $1550 Accounts Payable Cash Accounts Receivable 950 Stockholders Equity 750 Contributed Copital $1,500 590 Retained Earnings $3.250 $3.250 Total Liabilitmes& Stk. Equity Total Assets January Transactions for Francine's Fast Deliveries, Inc. (FFD) Date 1 Owners invest $27000 of additional cash in the business. 2a Supplies are purchased for $1.050 on account 2b Insurance is paid for 12 months beginning Januory 1 $7.680 (Record as an asset 2c Rent is paid for 3 months beginning in January $3.900 (Record as an asset 2d Two employees are hired. Each employee will be paid $1,500 per month 3 FFD borrows S31000 from 1st State Bank at 6% annual interest. 6 A delvery van is purchased for cash. including tax the total cost was $50.400 It will be used for 4 years and will be depreciated monthly using straight-line with no salivage value. A full month of depreciation will be charged in January 7 $665 of the receivables from Decembers salles are collected 8 $928 of the accounts payable from December are poid 9 Performed services for customers on account. Mailed invoices totaling $10.000 10 Services are performed for cash customers: $7,000. 16 Wages for the first nalf of the month are paid on January 16: $1,500 20 The company receives $3.650 from a customer for an advance order for services to be provided in 25 30a 30b January and February Collections from customers on account (see January 9 transaction $4000 The last 2 weeks wages earned by employees are $750 per employee and will be peid on February A $950 utblity bill for January arrived. It is due on February 15 Additional Information for adjusting entries at January 31 o Supplies on hand on January 31 total $360 b The company completed 60% of the deliveries for the customer who paid in odvance on January 20. c. interest is accrued for the bank loan. (Assume a full month for the 1st State Bank loan.) d. Record January depreciason e Adjust the prepaid asset (Rent and Insurance) accounts as needed e emprehensive Prob..| Microsoft Excel-Na

Explanation / Answer

*Rent and insurance expenses included in utilities expenses

Fast Deliveries Inc unadjusted trial balance Jan-31 Accounts title Debit Credit Cash $        10,447 Accounta receivables $          6,295 Supplies $              360 Prepaid insurance $          7,040 prepaid rent $          2,600 equipments $        50,400 Accumulated depreciation on equipments $          1,050 accounts payable $          2,232 unearned revenue $          1,460 notes payable $        31,000 wages payable $          1,500 interest payable $              155 Contributed capital $        28,500 retained earnings $              590 service revenue $        19,190 wages expenses $          3,000 supplies expneses $          1,440 depreciation expenses $          1,050 interest expenses $              155 utilities expenses* $          2,890 Total $        85,677 $        85,677