On December 31, 2016, Pack-And-Deliver Company Completed Its First Year $$55,000 to Rent Facilities

Essay

On 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:
Prepare an income statement for Pack-and-Deliver Company for the year ended December 31, 2016.