Question

A) On December 31, 2017, Pack-N-Deliver Company completed its first year of operations. The following information...

A) On December 31, 2017, Pack-N-Deliver Company completed its first year of operations. The following information has been provided for the year:

a. Sold packing supplies for $30,000 and provided $280,000 of delivery services.

b. All packing supplies sales were for cash.

c. Collected $212,000 of delivery service revenue.

d. Paid $15,000 cash to rent packing equipment, with $10,000 for rental in 2019 and the remaining amount for rental in 2020.

e. Spent $4,000 cash to repair delivery equipment during the year.

f. Bought packing supplies at a total cost of $46,000 and paid for $25,000 of these supplies. There were $20,000 of these supplies that have not yet been sold or used.

g. Paid employees $80,000 during the year.

h. Paid $16,000 for advertising for the year.

i. Used $14,000 in fuel for the delivery equipment.

j. Sold investments for $8,000 that had been purchased earlier in the year for $7,000.

k. Ordered $500 in spare parts and supplies.

l. Income tax expense for the year is $18,000.

1) Prepare an accrual basis income statement for Pack-and-Deliver Company for the year ended December 31, 2017.

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A) On December 31, 2019, Pack N-Deliver Company completed its first year of operations. The following...
A) On December 31, 2019, Pack N-Deliver Company completed its first year of operations. The following information has been provided for the year: a. Sold packing supplies for $30,000 and provided $280,000 of delivery services. b. All packing supplies sales were for cash. c. Collected $212,000 of delivery service revenue. d. Paid $15,000 cash to rent packing equipment, with $10,000 for rental in 2019 and the remaining amount for rental in 2020. e. Spent $4,000 cash to repair delivery equipment...
Nickleby’s Ski Store is completing the accounting process for its first year ended December 31, 2017....
Nickleby’s Ski Store is completing the accounting process for its first year ended December 31, 2017. The transactions during 2017 have been journalized and posted. The following data are available to determine adjusting journal entries: The unadjusted balance in Office Supplies was $1,150 at December 31, 2017. The unadjusted balance in Supplies Expense was $0 at December 31, 2017. A year-end count showed $160 of supplies on hand. Wages earned by employees during December 2017, unpaid and unrecorded at December...
Assume it is now December 31, 2017 and Nicole has just completed her first year of...
Assume it is now December 31, 2017 and Nicole has just completed her first year of operations at Nicole’s Getaway Spa. After looking through her trial balance, she noticed that there are some items that have either not been recorded or are no longer up-to-date. Nicole’s Getaway Spa is renting its space at a cost of $600 per month. On September 1, 2017, Nicole paid eight months’ rent in advance using cash. This prepayment was recorded in the account Prepaid...
Golden Corp., a merchandiser, recently completed its 2017 operations. For the year, (1) all sales are...
Golden Corp., a merchandiser, recently completed its 2017 operations. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, (5) Other Expenses are all cash expenses, and (6) any change in Income Taxes Payable reflects the accrual and cash payment of taxes. The company’s balance sheets and income statement follow. GOLDEN...
orten Company, a merchandiser, recently completed its calendar-year 2017 operations. For the year, (1) all sales...
orten Company, a merchandiser, recently completed its calendar-year 2017 operations. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) Other Expenses are paid in advance and are initially debited to Prepaid Expenses. The company’s income statement and balance sheets follow. FORTEN COMPANY Comparative Balance Sheets December 31, 2017...
Prepare a Cash Flow Statement for Rocket Corp. for the year ended December 31, 2017. Use...
Prepare a Cash Flow Statement for Rocket Corp. for the year ended December 31, 2017. Use the indirect method for the operating section. Use the balances provided below. [25 marks] Rocket Corporation Statement of Financial Position At December 31, 2017 2016 Cash $65,000 $29,000 Accounts Receivable 87,000 59,000 Inventory 133,000 81,000 Investments in shares (FV-OCI) 63,000 84,000 Land 65,000 103,000 Equipment 390,000 430,000 Accumulated depreciation (117,000) (86,000) Goodwill 124,000 173,000 Total Assets $810,000 $873,000 Accounts payable 12,000 51,000 Dividends payable...
The following information is available for Amos Company for the year ended December 31, 2017. A)...
The following information is available for Amos Company for the year ended December 31, 2017. A) Balance of retained earnings, December 31, 2016, prior to discovery of error, $851,000. B) Cash dividends declared and paid during 2017, $20,000. C) It neglected to record 2015 depreciation expense of $46,600, which is net of $6,600 in tax benefits. D) The company earned $221,000 in 2017 net income. Prepare a 2017 statement of retained earnings for Amos Company. (Amounts to be deducted should...
Macgregor Company completed its first year of operations on December 31, 2020. Its initial income statement...
Macgregor Company completed its first year of operations on December 31, 2020. Its initial income statement showed that Macgregor had revenues of $190,900 and operating expenses of $73,200. Accounts receivable and accounts payable at year-end were $63,900 and $31,600, respectively. Assume that accounts payable related to operating expenses. Ignore income taxes. Compute net cash provided by operating activities using the direct method. Net cash provided by operating activities $
Required information Golden Corp., a merchandiser, recently completed its 2017 operations. For the year, (1) all...
Required information Golden Corp., a merchandiser, recently completed its 2017 operations. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, (5) Other Expenses are all cash expenses, and (6) any change in Income Taxes Payable reflects the accrual and cash payment of taxes. The company’s balance sheets and income statement...
Forten Company, a merchandiser, recently completed its calendar-year 2017 operations. For the year, (1) all sales...
Forten Company, a merchandiser, recently completed its calendar-year 2017 operations. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) Other Expenses are paid in advance and are initially debited to Prepaid Expenses. The company’s income statement and balance sheets follow. FORTEN COMPANY Comparative Balance Sheets December 31, 2017...