Question

Huang Trucking Company was organized on January 1. At the end of the first quarter (three months) of operations, the owner prepared a summary of its activities as shown in the first row of the following tabulation: Required: 1. For each of the six transactions given in this tabulation, enter what you consider to be the correct amounts. The first transaction is illustrated. (Amounts to be deducted and losses/outflows should be indicated with a minus sign.) Computation of Income Cash a $ 69,000 $ 46,000 c. Summary of Transactions Services performed for customers, 589,000, of which $23,000 remained uncollected at the end of the quarter. b. Cash borrowed from the local bank, $58,000 (one-year note). Small service truck purchased at the end of the quarter to be used in the business for two years starting the next quarter: cost, $10,100 cash. d. Wages earned by employees, $21,800, of which one-half remained unpaid at the end of the quarter. Service supplies purchased for use in the business, $4,090 cash, of which $2,070 were unused (still on hand) at the end of the quarter. f. Other operating expenses, $27,000, of which $6,900 remained unpaid at the end of the quarter. 9. Based only on these transactions, compute the following for the quarter. Income (or loss) Cash inflow (or outflow) e.

Answer 1

		Computation of
	Summary of transactions	Income	Cash
a	Services performed for customes, $69,000, of which $23,000 remained uncollected at the end of the quarter	$69,000	$46,000
b	Cash borrowed from the local bank, $58,000 (one-year note)		$58,000
c	Small service truck purchased at the end of the quarter to be used in the business for two years starting the next quarter. Cost, $10,100 cash		($10,100)
d	Wages earned by employees, $21,800, of which one-half remained unpaid at the end of the quarter	($21,800)	($10,900)
e	Service supplies purchased for use in the business, $4,090 cash, of which $2,070 were unused (still on hand) at the end of the quarter	($2,020)	($4,090)
f	Other operating expenses, $27,000, of which $6,900 remained unpaid at the end of the quarter	($27,000)	($20,100)
g	Based only on these transactions, Compute the following for the quarter:
	Income (or loss)	$18,180
	Cash inflow (or outflow)		$58,810

Supplies used = Purchased - Unused = $4,090 - $2,070 = $2,020.