Ron Rhoades, the owner of Rhoades Resort, has hired you to prepare the resort’s income statement for the year ending December 31, 20X4. He has provided you with the balances of each of the general ledger accounts.

Cost of Calls—Telephone $ 22,820 Ending Inventory—Food and Beverage 15,386 Concessions—Revenue 1,473 Purchases—Food and Beverage 134,999 Depreciation 76,366 Other Operating Expenses—Food and Beverage 60,002 Other Operating Expenses—Rooms toe L23 Electric Expense 33,583 Rent Expense 80,000 Water Expense 26,859 Other Operating Expenses—Telephone 1,647 Interest Expense 42,833 Revenues Rooms 1,075,475 Food and Beverage 418,076 Telephone 53,898 Salaries and Related Expenses Rooms 178,461 Food and Beverage 105,519 Marketing 50,000 Property Operation and Maintenance 20,170 Telephone 22,000 Administrative and General 70,000 Other Departmental Expenses Administrative and General 30,000 Property Operation and Maintenance 45,000 Marketing 40,000 Tax Rate 25%

Required:

1. Prepare the income statement in accordance with the USALI. (If you do not have a copy of the USALI, use Exhibit 4-2 as a guide.)

Note: The beginning inventory of food and beverages was $18,795.

2. Prepare an income statement to be issued to external users.