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Project 1 Fall 15
naji alraddadi
Principles of Accounting I 2013: Fall 2015 Stephanie Ross
Project 1 Fall 15
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[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. The
resulting balance sheet at the beginning of 2012 is provided below:
Assets:
Cash
Accounts Receivable
Supplies
Total Assets
Francine’s Fast Deliveries, Inc.
Balance Sheet
at January 1, 2012
Liabilities:
$ 1,400 Accounts Payable
850 Stockholders’ Equity:
650 Contributed Capital
Retained Earnings
$2,900 Total Liabilities & Stk. Equity
$ 860
$ 1,500
540
$2,900
January Transactions for Francine’s Fast Deliveries, Inc. (FFD)
Date
1 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 month
3 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 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 $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 in
January and February.
25 Collections from customers on account (see January 9 transaction): $3,840
30a The last 2 weeks wages earned by employees are $680 per employee and will be paid on February
3.
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 points
Required information
Required:
1. 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 field.)
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Journal Entry Worksheet
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Owners invest $25,000 of additional cash in the business.
Date
General Journal
Debit
Credit
Jan. 1
*Enter debits before credits
done
clear entry
record entry
References
General Journal
Difficulty: Hard
Check my work
2.
value:
Required information
8.00 points
2. Post the beginning balances and January transactions to the TAccounts.
Cash
Beg. bal.
Accounts Receivable
Beg. bal.
End. bal.
End. bal.
Supplies
Beg. bal.
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Prepaid Insurance
Beg. bal.
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End. bal.
End. bal.
Prepaid Rent
Equipment
Beg. bal.
Beg. bal.
End. bal.
End. bal.
Accumulated Depreciation
Accounts Payable
Beg. bal.
Beg. bal.
End. bal.
End. bal.
Unearned Revenue
Notes Payable
Beg. bal.
Beg. bal.
End. bal.
End. bal.
Interest Payable
Wages Payable
Beg. bal.
Beg. bal.
End. bal.
End. bal.
Contributed Capital
Retained Earnings
Beg. bal.
Beg. bal.
End. bal.
End. bal.
Service Revenue
Wages Expense
Beg. bal.
Beg. bal.
End. bal.
End. bal.
Utilities Expense
Supplies Expense
Beg. bal.
Beg. bal.
End. bal.
End. bal.
Interest Expense
Insurance Expense
Beg. bal.
Beg. bal.
End. bal.
End. bal.
Rent Expense
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Depreciation Expense
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Beg. bal.
Beg. bal.
End. bal.
End. bal.
References
Worksheet
Difficulty: Hard
Check my work
3.
value:
2.50 points
Required information
3. Prepare an unadjusted trial balance using the TAccount balances.
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FAST DELIVERIES, INC.
Unadjusted Trial Balance
January 31
Account Title
Debit
Credit
Cash
Accounts Receivable
Supplies
Prepaid Insurance
Prepaid Rent
Equipment
Accumulated Depreciation—Equipment
Accounts Payable
Unearned Revenue
Notes Payable
Wages Payable
Interest Payable
Contributed Capital
Retained Earnings
Service Revenue
Wages Expenses
Supplies Expenses
Depreciation Expense
Interest Expense
Utilities Expense
Totals
References
Worksheet
Difficulty: Hard
Check my work
4.
value:
2.50 points
Required information
4.5. Analyze the accounts and prepare the adjusting entries required using the additional information
provided. Post the adjusting entry activity to the TAccounts in Requirement #2. (If no entry is
required for a transaction/event, select "No Journal Entry Required" in the first account field.)
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view transaction list
view general journal
Journal Entry Worksheet
1 2 3 4 5 6
Supplies on hand on January 31 total $310.
Date
General Journal
Debit
Credit
Jan. 31a
*Enter debits before credits
done
clear entry
record entry
References
General Journal
Difficulty: Hard
Check my work
5.
value:
3.00 points
Required information
6. Prepare the adjusted trial balance, using the revised set of taccount balances.
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FAST DELIVERIES, INC.
Adjusted Trial Balance
January 31
Account Title
Debit
Credit
Cash
Accounts Receivable
Supplies
Prepaid Rent
Prepaid Insurance
Equipment
Accumulated Depreciation—Equipment
Accounts Payable
Unearned Revenue
Wages Payable
Interest Payable
Notes Payable
Contributed Capital
Retained Earnings
Service Revenue
Wages Expenses
Utilities Expense
Supplies Expenses
Depreciation Expense
Insurance Expense
Rent Expense
Interest Expense
Totals
References
Worksheet
Difficulty: Hard
Check my work
6.
value:
3.00 points
Required information
7. Prepare endofJanuary financial statements. (Balance Sheet only, items to be deducted must be
indicated with a negative amount.)
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FAST DELIVERIES, INC.
Income Statement
FAST DELIVERIES, INC.
Statement of Retained Earnings
For the Month Ended January 31
Retained Earnings, Beginning of Period
Retained Earnings, End of Period
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FAST DELIVERIES, INC.
Balance Sheet
At January 31
Assets
Liabilities
Current Assets
Current Liabilities
Total Current Assets
Total Current Liabilities
Equipment, net
Total liabilities
Stockholders’ Equity
Total Stockholders’ Equity
Total Assets
Total Liabilities and Stockholders’ Equity
References
Financial Statements
Difficulty: Hard
Check my work
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