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Create an income statement for GHI Company

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Reference no: EM132863302

Question - On December 31, 2020, GHI Company completed its first year of operations. The following information (all amounts are in thousands of dollars) has been provided for the year (18 points):

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 2020 and the remaining amount for rental in 2021.

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.

Required - Create an income statement for GHI Company for the year ended December 31, 2020.

Reference no: EM132863302

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