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

Demonstrate perpetual inventory procedure, Q. Illustrate perpetual inventor...

Q. Illustrate perpetual inventory procedure? Data from Exhibit serves like the basis for some of the entries. You would debit the Merchandise Inventory account to record the en

Example of net purchases, Q. Example of Net purchases? Only the descrip...

Q. Example of Net purchases? Only the description would change. If Hanlon had previously paid the account the debit would be to Cash instead of Accounts Payable ever since Hanl

State the term- debits must always equal credits, State the term- Debits mu...

State the term- Debits must always equal credits To help understand Temporary Owner's Equity accounts. All transactions which affect owner's equity could be recorded in one

What is intangible assets, Q. What is Intangible Assets? Intangible ass...

Q. What is Intangible Assets? Intangible assets consist of the nonmonetary, noncurrent, nonphysical assets of a business. Companies should charge the costs of intangible assets

Explain the meaning of payroll deductions, Explain the meaning of Payroll D...

Explain the meaning of Payroll Deductions There are numerous deductions taken from an employee's earnings. These are deducted by employer before employee receives a check. D

What is federal unemployment tax, What is Federal unemployment tax Fed...

What is Federal unemployment tax Federal unemployment tax (FUTA) requires the payment of taxes to provide benefits for workers during periods of temporary unemployment. This

What is purchase discounts account, Q. What is Purchase Discounts account? ...

Q. What is Purchase Discounts account? The buyer records the purchase discount merely when the invoice is paid within the discount period and the discount is taken. The Purchas

What are accounting software packages, Q. What are Accounting software pack...

Q. What are Accounting software packages? Accounting software packages are normally menu driven and organized into modules such as accounts payable, general ledger, accounts re

What is periodic inventory procedure, Q. What is periodic inventory procedu...

Q. What is periodic inventory procedure? In the periodic inventory procedure the Merchandise Inventory account is updated periodically subsequent to a physical count has been m

Accounting project, journal entries and how to calculate entries 1. Braves...

journal entries and how to calculate entries 1. Braves estimates bad debt expense at 2% of net sales 2. At 12/31/11, 6 months of rent remains on the storage facility Braves lease

zack

9/25/2012 3:16:03 PM

where can u see all the replies

Write Your Message!

Captcha
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!

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