Ron Curcio, the owner of Ron’s Resort has hired you to prepare a resort’s income statement for the year ended 31 December 2007. He has provided you with the balances of each of the general ledger accounts and has requested that you follow the format established in the USHA for the income statement.

Vending machine revenues 819 Employee meals, food department 443 Cost of calls, telephone 22,820 Ending Inventory, food 15,386 Opening inventory, food 18,395 Insurance 3,000 Outdoor advertising 12,121 Grounds and landscaping 12,000 Purchases – food and beverage 1,34,999 Depreciation 76,000 Other selling expenses 17,000 Other operating expenses – food 60,002 Other operating expenses – rooms 1,51,123 Electricity charges 33,000 Rent 75,000 Water charges 25,000 Other operating expenses – Telephone 26,850 Interest expenses 1,600 revenues:

Rooms 10,75,000 Food and Beverage 4,20,000 Telephones 55,000 Salaries and Related Expenses:
Rooms 1,78,000 Food and Beverage 1,05,000 Marketing 24,000 Property operation and maintenance 20,000 Energy cost 10,000 Telephone 20,000 Data processing 10,000 Transportation 10,000 Administration and General 15,000 Other Expenses:
Administration and General 30,000 Transportation 15,000 Data processing 5,000 Tax rate 40%