ACC 2013 Project 1 Summer 2014. Check with your individual instructor for due date.

All
Work is to be hand written (NEATLY). No computer generated work will be accepted
Page 1

Practice Set 1 Name_________________________ Banner ID __________________

ACC 2013 PROJECT 1 MAXIMUM 15 Points
Requirements
We will begin work on this project in class as we study Chapter 3 and 4. We will all work together
on making sure you have all the journal entries correctly prepared and posted. We will discuss the
adjusting entries. You are required to prepare and post all entries and adjustments, as well as
develop an adjusted trial balance. Then, you are required to prepare the final financial statements
from your Adjusted Trial Balance. The various events and transactions are described
on page two. The left hand column for each item, labeled Ch., indicates the text chapter that
provides guidance for recording that transaction.

Due Dates
The project (hardcopy) must be turned in at the beginning of class on the day before Exam I. On
the due date, turn in your work with your name on each page. If you are not finished, turn in what
you have completed for partial credit. No late work will be accepted and you may not email the
project solution to me It is your responsibility to keep the dog from eating your homework and
to remember to not leave it at home or leave it in the car.

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 J anuary 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 2011. It had limited activity in 2011.
The resulting balance sheet at the beginning of 2012 is provided below:

Francines Fast Deliveries, Inc.
Balance Sheet
at January 1, 2012
Assets: Liabilities:
Cash $ 700 Accounts Payable $ 300
Accounts Receivable 900 Stockholders Equity:
Supplies 600 Contributed Capital $ 1,100
Retained Earnings 800
Total Assets $ 2,200 Total Liabilities & Stk. Equity $ 2,200


ACC 2013 Project 1 Summer 2014. Check with your individual instructor for due date. All
Work is to be hand written (NEATLY). No computer generated work will be accepted
Page 2

January Transactions for Francines Fast Deliveries, Inc. (FFD)
Ch. Date
2 1 Owners invest $16,000 of additional cash in the business.
2 2a Supplies are purchased for $1,000 on account.
2 2b Insurance is paid for 12 months beginning January 1: $5,700 (Record as an asset)
2 2c Rent is paid for 3 months beginning in January: $4,200 (Record as an asset)
2 2d Two employees are hired. Each employee will be paid $2,200 per month
2 3 FFD borrows $30,000 from 1
st
State Bank at 6% annual interest.
2 6 A delivery van is purchased for cash. Including tax the total cost was $24,000. 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.
2 7 $600 of the receivables from Decembers sales are collected.
2 8 $400 of the accounts payable from December are paid.
3 9 Performed services for customers on account. Mailed invoices totaling $10,400.
3 10 Services are performed for cash customers: $7,600.
3 16 Wages for the first half of the month are paid on January 16: $2,200.
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 $1,100 per employee and will be
paid on February 3.
3 30b A $1,200 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 60% 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 1
st
State
Bank loan.)
d. Record January Depreciation
e. Adjust the prepaid asset (Rent and Insurance) accounts as needed

ACC 2013 Project 1 Summer 2014. Check with your individual instructor for due date. All
Work is to be hand written (NEATLY). No computer generated work will be accepted
Page 3

Practice Set 1 Name_________________________ Banner ID __________________

1. Journal entries for January.
# Account Name Debit Credit




















































ACC 2013 Project 1 Summer 2014. Check with your individual instructor for due date. All
Work is to be hand written (NEATLY). No computer generated work will be accepted
Page 4

Practice Set 1 Name_____________________ Banner ID __________________

2. Post to T accounts


CASH Accounts Receivable Supplies Prepaid Insurance






Prepaid Rent

Equipment


Accum Depreciation








Accounts Payable

Unearned Revenue

Notes Payable

Interest Payable





Wages Payable


Contributed Capital


Retained Earnings







Service Revenue


Wages Expense


Utility Expense


Supplies Expense










Interest Expense


Insurance Expense


Rent Expense


Depreciation Expense






ACC 2013 Project 1 Summer 2014. Check with your individual instructor for due date. All
Work is to be hand written (NEATLY). No computer generated work will be accepted
Page 5

3. Prepare Unadjusted Trial Balance, Post the adjusting entries in (4) and complete the
Adjusted Trial Balance
Unadjusted TB Adjustments Adjusted TB
Account Debit Credit Debit Credit Debit Credit
CASH
Accounts Receivable
Supplies
Prepaid Insurance
Prepaid Rent
Equipment
Accum Depreciation

Accounts Payable
Unearned Revenue
Notes Payable
Interest Payable
Wages Payable

Contributed Capital
Retained Earnings

Service Revenue
Wages Expense
Utility Expense
Supplies Expense
Interest Expense
Insurance Expense
Rent Expense
Depreciation Expense



Totals


ACC 2013 Project 1 Summer 2014. Check with your individual instructor for due date. All
Work is to be hand written (NEATLY). No computer generated work will be accepted
Page 6

Practice Set 1 Name_____________________ Banner ID __________________

4. Prepare adjusting entries below.
# Account Name Debit Credit























5. Post the adjusting entries to the worksheet (Page 5) to update your account balances.


ACC 2013 Project 1 Summer 2014. Check with your individual instructor for due date. All
Work is to be hand written (NEATLY). No computer generated work will be accepted
Page 7

Practice Set 1 Name_____________________ Banner ID __________________

7. Prepare the end-of-January financial statements below:

FFD, Inc.
Income Statement
For the period January 1 January 31, 2012
Revenue
Expenses









Net income

FFD, Inc.
Statement of Retained Earnings
For the period January 1 January 31, 2012
Retained earnings, beginning of period
Add:
Less:

Retained earnings, end of period

FFD, Inc.
Balance Sheet
as of January 31, 2012
ASSETS LIABILITIES














Total Liabilities
STOCKHOLDERS EQUITY




Total stockholders equity
Total stockholders equity & Liab.