accounting- Principles of Accounting I 2013: Fall 2015 Stephanie Ross Project 1 Fall 15

QUESTION

11/18/2015Project 1 Fall 15naji alraddadiPrinciples of Accounting I 2013: Fall 2015 Stephanie RossProject 1 Fall 15instructions | help[The following information applies to the questions displayed below.]Francine’s Fast Deliveries, Inc. (FFD) was organized in December of 2011. It had limited activity in 2011. Theresulting balance sheet at the beginning of 2012 is provided below:Assets:CashAccounts ReceivableSuppliesTotal AssetsFrancine’s Fast Deliveries, Inc.Balance Sheetat January 1, 2012Liabilities:$ 1,400 Accounts Payable850 Stockholders’ Equity:650 Contributed CapitalRetained Earnings$2,900 Total Liabilities & Stk. Equity$ 860$ 1,500540$2,900January Transactions for Francine’s Fast Deliveries, Inc. (FFD)Date1 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)2c 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 month3 FFD borrows $28,000 from 1st State Bank at 6% annual interest.6 A delivery van is purchased for cash. Including tax the total cost was $45,600. It will be used for 4years and will be depreciated monthly using straight-line with no salvage value. A full month ofdepreciation will be charged in January.7 $595 of the receivables from December’s sales are collected.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 inJanuary and February.25 Collections from customers on account (see January 9 transaction): $3,84030a The last 2 weeks wages earned by employees are $680 per employee and will be paid on February3.30b 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.1.value:6.00 pointsRequired informationRequired:1. Record the transactions for January, the first full month of operations. (If no entry is required for atransaction/event, select "No Journal Entry Required" in the first account field.)http://ezto.mheducation.com/hm.tpx?_=0.9384926494154403_14478577236531/911/18/2015Project 1 Fall 15view transaction listview general journalJournal Entry Worksheet1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16Owners invest $25,000 of additional cash in the business.DateGeneral JournalDebitCreditJan. 1*Enter debits before creditsdoneclear entryrecord entryReferencesGeneral JournalDifficulty: HardCheck my work2.value:Required information8.00 points2. Post the beginning balances and January transactions to the T­Accounts.CashBeg. bal.Accounts ReceivableBeg. bal.End. bal.End. bal.SuppliesBeg. bal.http://ezto.mheducation.com/hm.tpx?_=0.9384926494154403_1447857723653Prepaid InsuranceBeg. bal.2/911/18/2015Project 1 Fall 15End. bal.End. bal.Prepaid RentEquipmentBeg. bal.Beg. bal.End. bal.End. bal.Accumulated DepreciationAccounts PayableBeg. bal.Beg. bal.End. bal.End. bal.Unearned RevenueNotes PayableBeg. bal.Beg. bal.End. bal.End. bal.Interest PayableWages PayableBeg. bal.Beg. bal.End. bal.End. bal.Contributed CapitalRetained EarningsBeg. bal.Beg. bal.End. bal.End. bal.Service RevenueWages ExpenseBeg. bal.Beg. bal.End. bal.End. bal.Utilities ExpenseSupplies ExpenseBeg. bal.Beg. bal.End. bal.End. bal.Interest ExpenseInsurance ExpenseBeg. bal.Beg. bal.End. bal.End. bal.Rent Expensehttp://ezto.mheducation.com/hm.tpx?_=0.9384926494154403_1447857723653Depreciation Expense3/911/18/2015Project 1 Fall 15Beg. bal.Beg. bal.End. bal.End. bal.ReferencesWorksheetDifficulty: HardCheck my work3.value:2.50 pointsRequired information3. Prepare an unadjusted trial balance using the T­Account balances.http://ezto.mheducation.com/hm.tpx?_=0.9384926494154403_14478577236534/911/18/2015Project 1 Fall 15FAST DELIVERIES, INC.Unadjusted Trial BalanceJanuary 31Account TitleDebitCreditCashAccounts ReceivableSuppliesPrepaid InsurancePrepaid RentEquipmentAccumulated Depreciation—EquipmentAccounts PayableUnearned RevenueNotes PayableWages PayableInterest PayableContributed CapitalRetained EarningsService RevenueWages ExpensesSupplies ExpensesDepreciation ExpenseInterest ExpenseUtilities ExpenseTotalsReferencesWorksheetDifficulty: HardCheck my work4.value:2.50 pointsRequired information4.­5. Analyze the accounts and prepare the adjusting entries required using the additional informationprovided. Post the adjusting entry activity to the T­Accounts in Requirement #2. (If no entry isrequired for a transaction/event, select "No Journal Entry Required" in the first account field.)http://ezto.mheducation.com/hm.tpx?_=0.9384926494154403_14478577236535/911/18/2015Project 1 Fall 15view transaction listview general journalJournal Entry Worksheet1 2 3 4 5 6Supplies on hand on January 31 total $310.DateGeneral JournalDebitCreditJan. 31a*Enter debits before creditsdoneclear entryrecord entryReferencesGeneral JournalDifficulty: HardCheck my work5.value:3.00 pointsRequired information6. Prepare the adjusted trial balance, using the revised set of t­account balances.http://ezto.mheducation.com/hm.tpx?_=0.9384926494154403_14478577236536/911/18/2015Project 1 Fall 15FAST DELIVERIES, INC.Adjusted Trial BalanceJanuary 31Account TitleDebitCreditCashAccounts ReceivableSuppliesPrepaid RentPrepaid InsuranceEquipmentAccumulated Depreciation—EquipmentAccounts PayableUnearned RevenueWages PayableInterest PayableNotes PayableContributed CapitalRetained EarningsService RevenueWages ExpensesUtilities ExpenseSupplies ExpensesDepreciation ExpenseInsurance ExpenseRent ExpenseInterest ExpenseTotalsReferencesWorksheetDifficulty: HardCheck my work6.value:3.00 pointsRequired information7. Prepare end­of­January financial statements. (Balance Sheet only, items to be deducted must beindicated with a negative amount.)http://ezto.mheducation.com/hm.tpx?_=0.9384926494154403_14478577236537/911/18/2015Project 1 Fall 15FAST DELIVERIES, INC.Income StatementFAST DELIVERIES, INC.Statement of Retained EarningsFor the Month Ended January 31Retained Earnings, Beginning of PeriodRetained Earnings, End of Periodhttp://ezto.mheducation.com/hm.tpx?_=0.9384926494154403_14478577236538/911/18/2015Project 1 Fall 15FAST DELIVERIES, INC.Balance SheetAt January 31AssetsLiabilitiesCurrent AssetsCurrent LiabilitiesTotal Current AssetsTotal Current LiabilitiesEquipment, netTotal liabilitiesStockholders’ EquityTotal Stockholders’ EquityTotal AssetsTotal Liabilities and Stockholders’ EquityReferencesFinancial StatementsDifficulty: HardCheck my work©2015 McGraw-Hill Education. All rights reserved.http://ezto.mheducation.com/hm.tpx?_=0.9384926494154403_14478577236539/9

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