Robert Woods, the owner of Woods’ Place, has hired you to prepare the income statement for the year ending December 31, 20X1. He has provided you with the balances of each of the general ledger accounts.

Manager's Salary $ 45,000 Interest Revenue 1,000 Cost of Calls—Telephone Department 25,000 Beginning Inventory—Food and Beverage 12,000 Fire Insurance 3,000 Commissions—Rooms Department 3,000 Purchases—Food and Beverage 140,000 Depreciation 200,000 Other Selling Expenses 14,000 Other Operating Expenses—Food 60,000 Management Fees 75,000 Other Operating Expenses—Rooms 160,000 Electric Expense 35,000 Rent Expense 20,000 Water Expense 27,000 Interest Expense 20,000 Revenues Rooms 1,500,000 Food and Beverage 450,000 Telephone 80,000 Rental Revenues 7,000 Property Taxes 50,000 Salaries and Related Expenses Rooms 400,000 Food and Beverage 105,000 Marketing 24,000 Property Operation and Maintenance 25,000 Telephone 20,000 Administrative and General (other than GM's salary) 55,000 Other Department Expenses Administrative and General 30,000 Marketing (other than selling expenses) 50,000 Property and Maintenance 40,000 Tax Rate 25% Ending Inventory—Food and Beverage 15,000 Required:
Prepare anincome statement in accordance with the USALL (If you do not have a copy of the USALI, use Exhibit 4—2 as a guide.)