Question
On December 31, 2022 Pack-and-Deliver Company completed its first year of operations. The following information has been provided for the year: Sold packing supplies for
On December 31, 2022 Pack-and-Deliver Company completed its first year of operations. The following information has been provided for the year:
Sold packing supplies for $32,000 and provided $285,000 of delivery services.
All packing supplies sales were for cash.
Collected $214,000 of delivery service revenue.
Paid $17,000 cash to rent packing equipment, with $12,000 for rental in 2022 and the remaining amount for rental in 2023.
Spent $6,000 cash to repair delivery equipment during the year.
Bought packing supplies at a total cost of $48,000 and paid for $27,000 of these supplies. There were $22,000 of these supplies that have not yet been sold or used.
Paid employees $82,000 during the year.
Paid $18,000 for advertising for the year.
Used $16,000 in fuel for the delivery equipment.
Sold investments for $10,000 that had been purchased earlier in the year for $9,000.
Ordered $500 in spare parts and supplies.
Income tax expense for the year is $20,000.
Required:
Prepare an income statement for Pack-and-Deliver Company for the year ended December 31, 2022.
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