Reference no: EM132739921

Problem - FA Movers Corp. was formed on 1/1/19. At the end of its first year of operations, on 12/31/19, FA Movers reports the following for the year (all amounts are in thousands of dollars):

a. Provided moving services for a value of $250,000.

b. Collected $202,000 of the services detailed above.

c. Rented moving equipment. Paid $17,000 cash, with $11,000 for rental in 2019 and the remaining amount for rental in 2020.

d. Paid $5,000 cash to repair moving equipment during the year.

e. Purchased a total of $43,000 of office supplies, paying for $25,000 of these supplies and leaving the balance on-account. $22,000 of these supplies have not yet been used at year end.

f. Paid employees $80,000 for work done during the year.

g. Paid $15,000 for advertising which ran during the year.

h. Used $14,000 in fuel for the moving equipment.

i. Sold investments for $8,000 that had been purchased earlier in the year for $7,000.

j. Ordered $500 of moving supplies and $1,200 of equipment {to be delivered in 2020).

k. Income tax expense for the year is $16,000.

Required - Prepare a multi-step income statement for FA Movers Corp for the year.