Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

December 31, 2016, Pack-and-Deliver Company completed its first year of operations. The following information has been provided for the year: a. Sold packing supplies for

December 31, 2016, Pack-and-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 2016 and the remaining amount for rental in 2017. 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. Paid $$55,000 to rent facilities. Pack-and-Deliver has not yet paid the $5,000 rent for December, 2016. j. Used $14,000 in fuel for the delivery equipment. k. Sold investments for $8,000 that had been purchased earlier in the year for $7,000. l. Ordered $500 in spare parts and supplies. m. Income tax expense for the year is $18,000. Required: Write the journal entries in correct form for Pack-and-Deliver Company for the year ended December 31, 2016.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Audit Process Principles Practice And Cases

Authors: Stuart Manson, Iain Gray, Louise Crawford

6th Edition

1408081709, 978-1408081709

More Books

Students also viewed these Accounting questions