I NEED HELP MAKING A T ACCOUNT FOR ALL OF THIS PLEASE!!!! I HAVE TO TURN THIS IN
ID: 2418768 • Letter: I
Question
I NEED HELP MAKING A T ACCOUNT FOR ALL OF THIS PLEASE!!!! I HAVE TO TURN THIS IN TONIGHT!!!!
Francine’s Fast Deliveries, Inc. (FFD) was organized in December of 2011. It had limited activity in 2011. The resulting balance sheet at the beginning of 2012 is provided below:
A delivery van is purchased for cash. Including tax the total cost was $62,400. It will be used for 4 years and will be depreciated monthly using straight-line with no salvage value. A full month of depreciation will be charged in January.
The company receives $4,400 from a customer for an advance order for services to be provided in January and February.
The last 2 weeks wages earned by employees are $925 per employee and will be paid on February 3.
The company completed 60% of the deliveries for the customer who paid in advance on January 20.
Francine’s Fast Deliveries, Inc. (FFD) was organized in December of 2011. It had limited activity in 2011. The resulting balance sheet at the beginning of 2012 is provided below:
Explanation / Answer
Francine’s Fast Deliveries, Inc.
Balance Sheet as on 31st January,2012
Assets: Amount($) Liabilities: Amount($)
Insurance 8580 Shareholders Equity:
Prepaid rent 3200 Contributed capital 34000
Delivery van 62400 Retained Earnings 715
Depreciation for 1 month 1300 Bank loan 36000
Accounts Recievable 360 Accounts payable 282
Supplies 460 Outstanding wages 1850
Cash 2127 Outstanding bill 1175
Outstanding services 1760
Accrued Interest 180
Profit and loss a/c (b/f) 2465
78427 78427
Working notes:
1) contributed capital is $2000 + additional cash $32000 =$36000
2) Wages given $1850 per month per person half wages paid on 16th jan remaining half paid on 3rd feb i.e ($925*2=$1850) for two employees
3) Outsanding services recieved $4400 *40% = $1760
4) Accrued interest : interest to be calculated monthly = $36000 * 6% /12 = $180
5) Depreciation of van for one month : $62400/48months = $ 1300
6) Accounts recievable : $1200 - $840 =$360
7) Supplies : opening $1000 + purchases $1300 - closing $460 = payment $1840
8) Cash a/c
Debit Amount $ Credit Amount $
To balance b/d 1925 By insurance 8580
additional capital 32000 supplies 1840
bank loan 36000 rent 4800
recievables 840 wages 1850
services to caash customers 7480 accounts payable 1128
collection from customers on a/c 4480 purchase of van 62400
balance c/d 2127
82725 82725
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