Ashraf\'s Delivery Service is at the end of its accounting year, December 31, 20

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Ashraf's Delivery Service is at the end of its accounting year, December 31, 2014 The following data that must be considered were developed from the company's records and related documents: On January 1, 2014. the company purchased a new hauling van at a cash cost of $24,600. Depreciation estimated at $4,000 for the year has not been recorded for 2014. During 2014. office supplies amounting to $1,000 were purchased for cash and debited in full to Supplies At the end of 2013. the count of supplies remaining on hand was $400 The inventory of supplies counted on hand at December 31,2014, was $250 On December 31.2014. Jabra's Vehicle Repairs completed repairs on one of the company's trucks at a cost of $1,200; the amount is not yet recorded and by agreement will be paid during January 2015. On December 31, 2014, properly taxes on land owned during 2014 were estimated at $1,500 The taxes have not been recorded, and will be paid in 2015 when billed On December 31, 2014. the company completed a contract for an out-of-state company for $6,000 payable by the customer within 30 days. No cash has been collected, and no journal entry has been made for this transaction. On July 1,2014. a three year insurance premium on equipment in the amount of $ 1.200 was paid and debited in full to Prepaid Insurance on that date Coverage began on July 1. On October 1, 2014. the company borrowed $11.000 from the local bank on a one-year 14 percent note payable The principal plus interest is payable at the end of 12 months The income before any of the adjustments or income taxes was $30,000. The company's federal income tax rate is 30 percent. (Hint: Compute adjusted income based on (a) through (g) to determine income tax expense.)

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