P2.1 Prepare a food department income statement in proper format for the Midland
ID: 2492571 • Letter: P
Question
P2.1 Prepare a food department income statement in proper format for the Midlands Restaurant from the following information for the first quarter ended on March 31, year 0007 (other income was received from leasing excess equipment for one month and was not a part of normal operations):
Sales Revenue:
Grill room $ 183,200
Coffee garden 82,900
Banquets 294,400
Net food costs 224,200
Salaries and wages expense 176,400
Employee meals expense 18,200
Supplies expense 10,300
Glass and tableware expense 4,300
Laundry and linen expense 13,500
License expense 2,400
Printing expense 4,900
Miscellaneous expense 8,200
Other income 800
Explanation / Answer
sales revenue Grill room 183200 Coffee garden 82900 Banquets 294400 Total sales revenue (A) 560,500 less:operating expense Net food costs 224200 Salaries and wages expense 176400 Employee meals expense 18200 Supplies expense 10300 Glass and tableware expense 4300 Laundry and linen expense 13500 License expense 2400 Printing expense 4900 Miscellaneous expense 8200 Total operating expense (B) (462,400) operating income (A-B) 98100 other income /(expense) other income 800 net income 98900
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