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 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 cash during the year. h. Paid $16,000 cash for advertisin g 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. 1. Income tax expense for the year is $18,000.

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 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 cash during the year. h. Paid $16,000 cash for advertisin g 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. 1. Income tax expense for the year is $18,000.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 11RE: On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to...

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