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

Genentech, Genentech, Inc. is a California-based biotech pioneer recently a...

Genentech, Inc. is a California-based biotech pioneer recently acquired by Swiss pharmaceutical giant Roche Holding AG. Roche paid $46.8 billion in cash for the 44 percent of Gen

Cash flow statement and accounting information systems, 1. My accountant ha...

1. My accountant has told me that my business made a profit of £100,000 last year. However over the same time period my bank balance has decreased and not increased as I expected.

Introduction to inventories, Q. Introduction to inventories? Subsequent...

Q. Introduction to inventories? Subsequent to studying this chapter you should be able to - Record the journal entries for sales transactions involving merchandise. - Exp

What do you mean by risk management contracts, Q. What do you mean by Risk ...

Q. What do you mean by Risk management contracts? In the normal course of business the Company utilizes a variety of off-balance-sheet financial instruments to manage its expos

Illustrate about accounting cycle, Q. Illustrate about accounting cycle? ...

Q. Illustrate about accounting cycle? The accounting cycle is a series of points performed during the accounting period some throughout the period and some at the end to reco

Defination of Accounting, Define Accounting. Briefly explain the accounting...

Define Accounting. Briefly explain the accounting concepts which guide the accountant at the recording stage.on..

Accounts payable subsidiary ledger, An accounting ledger that reveals the t...

An accounting ledger that reveals the transaction history and amounts owed independently for each supplier from whom the business gets credit for purchases. The balance in the cust

Example of electronic spreadsheets, Q. Example of Electronic spreadsheets? ...

Q. Example of Electronic spreadsheets? Electronic spreadsheets have many applications in accounting. An electronic spreadsheet is basically a large blank page that contains row

What is the center of gravity, A supplier to the electric utility industry...

A supplier to the electric utility industry produces power  generators.  The Transportation costs are high.  One  market area includes the lower part  of  the Great  Lakes region

Explain about income statement, Q. Explain about income statement? The ...

Q. Explain about income statement? The income statement, sometimes called as an earnings statement that reports the profitability of a business organization for a stated period

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