January 2011 Transactions for Francine’s Fast Deliveries, Inc. (FFD)
Date
1. Owners invest $18,000 of additional cash in the business.
2a. Supplies are purchased for $1,200
2b. Insurance is paid for 6 months beginning January 1: $2,400 (Record as asset)
2c. Rent is paid for 2 months beginning in January: $4,500 (Record as an asset)
2d. Two employees are hired. Each employee will be paid $2,400 per month
3. FFD borrows $12,000 from 1st State Bank at 12% annual interest.
6. A delivery van is purchased for cash. Including tax the total cost was $10,800. It will be used for 2 years and will be depreciated monthly using straight line with no salvage value. A full month of depreciation will be charged in January.
7. $1,100 of the receivables from December’s sales are collected.
8. All of the accounts payable from December are paid.
9. Mailed invoices for services performed for customers on account: $9,800.
10. Services are performed for cash customers: $7,200.
16. Wages for the first half of the month are paid on January 16.
20. The company receives $3,600 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): $4,500
30a. The last 2 weeks wages earned by employees are $1,200 per employee and will be paid on February 3.
30b. A $775 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 $500.
b. The company completed 45% of the deliveries for the customer who paid in
advance on January 20.
c. Interest is accrued for the bank loan. (Assume a full month for the 1st State
Bank loan.)
d. Adjust the prepaid asset accounts as needed
e. Record January Depreciation