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1. Kenley Ryan, the owner of Kenley's Resort and Country Club, has hired you to prepare the income statement for the year ending December 31,

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1. Kenley Ryan, the owner of Kenley's Resort and Country Club, has hired you to prepare the income statement for the year ending December 31, 2019. She has provided you with the following information and has requested you follow the format established in the USASH. Account Account Balance Insurance (Fire) Rooms department - salaries and wages 90.000 60.000 20.000 Food department - salaries and wages Supplies and other - food department Food purchases Room sales Interest income 65.000 550.000 Interest expense 30.000 Cost of food sold Food sales 250.000 60.000 Administrative and General - salaries and wages Information & Telecommunications - other expenses 12.000 12.000 Advertising Management Fee Maintenance -contract 40,000 40.000 Depreciation Amortization 5.000 15,000 Power and Lights Supplies and other room department 30,000 Property taxes 15.000 Franchise Fee 21,450 Administrative & General - other expenses 15,000 St Additional Information: 1. the Resort invested $30.000 in the Delaware National Bank earning 10 percent on July 19 2. The beginning and ending food inventories were $5,000 and $4.000, respectively. Food consumed by the food and rooms department employees during the year free of charge totaled $300 and $500 respectively 3. Fringe benefits and payroll taxes for all employees, excluding free food were 25% of gross salaries and wages. 4. The Resort pays an average tax rate of 34%, S. The management fee is 3% of net room sales and 5% of total income after undistributed operating expenses. 6. Fire Insurance was purchased on June 15, 2018 for a two year period of coverage from July 1, 2018 through June 30, 2020. TH two year premium was 536.000 7. Sold some equipment with a book value of $5,000 for $3.000

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