Problem 1-5 Income Statement, Statement of Retained Earning s , and Balance Shee
ID: 2369599 • Letter: P
Question
Problem 1-5 Income Statement, Statement of Retained Earnings, and
Balance Sheet
The following list, in alphabetical order, shows the various items that regularly appear on the financial
statements of Maple Park Theatres Corp. The amounts shown for balance sheet items are
balances as of September 30, 2012 (with the exception of retained earnings, which is the balance
on September 1, 2012), and the amounts shown for income statement items are balances for the
month ended September 30,2012.
~ Accounts payable $17,600
--Accounts receivable 6,410
- Advertising expense 14,500
- Buildings 60,000
~ Capital stock 50,000
_ Cash 15,230
- Concessions revenue 60,300
- Cost of concessions sold 23,450
~ Dividends paid during the month 8,400
Furniture and fixtures 34,000
~Land 26,000
~Notes payable - 20,000",
--Projection equipment 25,000
- Rent expense-movies 50,600
- Retained earnings 73,780
- Salaries and wages expense 46,490_
- Ticket sales 95,100
--Water, gas, and electricity 6,700
Required
1. Prepare an income statement for the month ended September 30, 2012.
2. Prepare a statement of retained earnings for the month ended September 30, 2012.
3. Prepare a balance sheet at September 30, 2012. '
4. You have $1,000 to invest. On the basis of the statements you prepared, would you use it to
buy stock in Maple Park? Explain. What other information would you want before making a
final decision?
Explanation / Answer
Income Statement Advertising (14,500.00) C.Revenue 60,300.00 Cost of C.sold (23,450.00) Dividends paid (8,400.00) rent expense (50,600.00) salaries (46,490.00) ticket sales 95,100.00 water gas etc (6,700.00) income 5,260.00
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.