Question

Prepare the income statment, statement of retained earnings and balance sheet.

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 Francine's Fast Deliveries, Inc. Balance Sheet of January 1, 2012 Liabilities: $ 1.775 Accounts Payable 1,100 Stockholders' Equity 900 Contributed Capital Retained Earnings $ 1110 $2,000 665 Total Assets $3,775 Total Liabilities & Stk. Equity $ 3.775 January Transactions for Francine's Fast Deliveries, Inc. (FFD) Date 1 Owners invest $30,000 of additional cash in the business. 2a Supplies are purchased for $1.200 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 employees are hired. Each employee will be paid $1,710 per month 3 FFD borrows $34,000 from 154 State Bank at 6% annual interest. 6 A delivery van is purchased for cash. Including tax the total cost was $57,600. 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 $770 of the receivables from December's sales are collected. 8 $888 of the accounts payable from December are paid. 9 Performed services for customers on account. Mailed invoices totaling $10,800. 10 Services are performed for cash customers: $7,560. 16 Wages for the first half of the month are paid on January 16: $1,710. 20 The company receives $4,100 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): $4,320 30a The last 2 weeks wages earned by employees are $855 per employee and will be paid on February 30 A $1,085 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 $420. b. The company completed 60% of the deliveries for the customer who paid in advance on January 20. Interest is accrued for the bank loan. (Assume a full month for the 15 State Bank loan.) d. Record January depreciation. e. Adjust the prepaid asset (Rent and Insurance) accounts as needed