Project, Accounting Basics

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
$ 700
Accounts Payable
$ 600
Accounts Receivable
Stockholders’ Equity:
Contributed Capital
$ 1,000
Retained Earnings
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
Posted Date: 9/25/2012 10:27:09 AM | Location : United States

where can u see all the replies
Posted by zack | Posted Date: 9/25/2012 3:16:03 PM

Related Discussions:- Project, Assignment Help, Ask Question on Project, Get Answer, Expert's Help, Project Discussions

Write discussion on Project
Your posts are moderated
Related Questions
Bank for International Settlements (BIS) A consortium bank recognized to coordinate the collection and rescheduling of German reparations after World War I, the BIS has surviv

Q. What is Asset cost and Estimated residual value? Asset cost: The asset cost is the sum that a company paid to purchase the depreciable asset. Estimated residual value:

Target Company issues bonds with a par value of $900,000 on their stated issue date. The bonds mature in 10 years and pay 10% annual interest in semiannual payments. On the issue

Q. Explain about delivery expense? When shipping goods FOB destination freight prepaid the seller is accountable for and pays the freight bill. For the reason that the seller c

Terry Dorsey started Dorsey Hardware a tiny hardware store two years ago and has struggled to make it successful. The first year of operations effected in a substantial loss in the

Jan. 1 Purchased a small company and recorded goodwill of $150,000. Its useful life is indefinite. May 1 Purchased for $90,000 a patent with an estimated useful life of 5 years an

Q. Show accounting deception situations? In 2002 The Sarbanes-Oxley Act was approved. The Act was approved as one result of the large losses to the employees and investors from

Lego Toys is planning to produce new toys at its factories.  The setup cost of the production facilities, production costs and profits for each toy are given below: Toy    Setup c