Question

• Prepare the unajusted trial balance

-Include heading

-Total debits equals total credits

IThe following information applles 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 Francine's Fast Deliverles, Inc. Balance Sheet ot January 1, 2012 Liabilities: Assets: $1,775 Accounts Payable Stockholders' Equity Contributed Capital Retained Earnings $ 1110 Cash Accounts Receivable Supplies 1,100 900 $2,000 665 $3,775 Total Liabilities & Stk. Equity $ 3,775 Total Assets 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 1st State Bank at 6 % annual interest. 6 A delivery van is purchased for cash. Including tax the total cost was $57600. 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 3. A $1,085 utility bill for January arrived. It is due on February 15. 30b 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 1 State Bank loan.) d. Record January depreciation. e. Adjust the prepaid asset (Rent and Insurance) accounts as needed.

Answer 1

A trial balance is a statement of all the debits and credits of the ledger account balances entered in the double entry book keeping system. Any disagreemnet between the debit and credit totals indicates an error or an unidentified transaction which is recorded in the name of suspense account.

Unadjusted Trial Balance
Debits
Cash	9607
Supplies	420
Wages	3420
Utility expense	1085
Prepaid insurance	7535
Prepaid rent	3000
Accounts receivable	6810
Delivery van	57600
Depreciation	1200
Insurance	685
Rent expense	1500
Interest expense	170
Suspense account	540
Total	93572
Credits
Accounts payable	2507
Service revenue	20820
Capital	32000
Retained earnings	665
Loan payable	34000
Unearned service revnue	1640
Wages payable	1770
Interest payable	170
Total	93572