User Account

All Pages

Project, Accounting Basics

Assignment Help:

Instructions:
1. Using the journal entry sheet provided, record the transactions for January. January is the first
full month of operations.
2. After journalizing the transactions above, post the transactions to the T accounts.
Reminder: Do not forget to enter the opening balances from the January 1 balance sheet.
3. Prepare an Unadjusted Trial Balance using the t-account balances.
4. Analyze the accounts - prepare the adjusting entries required. Additional information is
listed below. Also, be sure to reexamine descriptive information given for the January and
February transactions to identify possible adjustments that should be entered.
5. Post the adjusting entries to T accounts
6. Prepare the Adjusted Trial Balance using the revised set of t-account balances.
7. Prepare end-of-January financial statements.


Background information:
Fast Deliveries, Inc. (FFD) was organized in December of 2010. It had limited activity in 2010. The resulting balance sheet at the beginning of 2011 is provided below: Francine’s Fast Deliveries, Inc.
Balance Sheet
at January 1, 2011
Assets:
Liabilities:
Cash
$ 700
Accounts Payable
$ 600
Accounts Receivable
800
Stockholders’ Equity:
Supplies
500
Contributed Capital
$ 1,000
Retained Earnings
400
Total Assets
$ 2,000
Total Liabilities & Stk. Equity
$ 2,000


January Transactions for Francine’s Fast Deliveries, Inc. (FFD)
Ch. Date
2 1 Owners invest $18,000 of additional cash in the business.
2 2a Supplies are purchased for $2,000
2 2b Insurance is paid for 6 months beginning January 1: $5,700 (Record as an asset)
2 2c Rent is paid for 3 months beginning in January: $4,500 (Record as an asset)
2 2d Three employees are hired. Each employee will be paid $2,800 per month
2 3 FFD borrows $30,000 from 1st State Bank at 10% annual interest.
2 6 A delivery van is purchased for cash. Including tax the total cost was $26,640. It
will be used for 3 years and will be depreciated monthly using straight-line with
no salvage value. A full month of depreciation will be charged in January.
2 7 All of the receivables from December’s sales are collected.
2 8 All of the accounts payable from December are paid.
3 9 Performed services for customers on account. Mailed invoices totaling $10,200.
3 10 Services are performed for cash customers: $7,600.
2 15 FFD borrows $9,000 from 2nd State Bank at 8% annual interest.
3 16 Wages for the first half of the month are paid on January 16: $4,200.
3 20 The company receives $3,500 from a customer for an advance order for services
to be provided in January and February.
3 25 Collections from customers on account (see January 9 transaction): $4,500
3 30a The last 2 weeks wages earned by employees are $1,400 per employee and will be
paid on February 3.
3 30b A $3,100 utility bill for January arrived. It is due on February 15.
4 Additional Information for adjusting entries at January 31:
a. Supplies on hand on January 31 total $250.
b. The company completed 30% of the deliveries for the customer who paid in
advance on January 20.
c. Interest is accrued for the two bank loans. (Assume a full month for the 1st State
Bank loan and a half month for the 2nd State Bank loan.)
d. Adjust the prepaid asset accounts as needed
e. Record January Depreciation

Related Discussions:- Project

CIS 180, Start in cell E3. Complete the series of substitution values rangi...

Start in cell E3. Complete the series of substitution values ranging from 5 to 15 at increments of 1, vertically down column E.

Contributed capital, what is the contributed capital and how do you figure ...

what is the contributed capital and how do you figure it out?

What do the "transfer" items in the notes to the financial, What do the "tr...

What do the "transfer" items in the notes to the financial statements relate to? (in the capital assets section; Plant, property & equipment and Intangible assets

Nature of accounting function, An accounting is a service function. The mai...

An accounting is a service function. The main accounting executive through whatever name he is termed as holds a staff position except inside his own department where he exerts aut

Assignment, o depreciation on the building has been recorded in 2016. Depre...

o depreciation on the building has been recorded in 2016. Depreciation on the building is based on Double-Declining Balance. It was purchased on 1/1/15 and has an estimated useful

Advantages and disadvantages of lifo, Q. Advantages and Disadvantages of LI...

Q. Advantages and Disadvantages of LIFO? LIFO: Advantages (a) LIFO reports both sales revenue and cost of goods sold in current dollars and (b) lower income taxes result if use

Explain about financial statement, Q. Explain about financial statement? ...

Q. Explain about financial statement? The income statement is the statement of retained earnings the balance sheet and the statement of cash flows of Metro Courier Inc demonstr

Joint venture accounts, explain the separate set of books method for mainta...

explain the separate set of books method for maintaining joint venture accounts

Standards and conventions of accounting, Investigate the principles, standa...

Investigate the principles, standards and conventions of accounting by:   assessing  the need for financial information, its purpose and limitations   analysing the role

Responsibility of general manager and salesperson, Q. Responsibility of Gen...

Q. Responsibility of General Manager and salesperson? Upon promotion to manager Tracy will start the transformation from auditor to executive. She will manage numerous audits a

zack

9/25/2012 3:16:03 PM

where can u see all the replies

Write Your Message!

Captcha
Order Assignment

Featured Services

Order Now

Popular Subjects

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd