176 Chapter 5 Problem 16 The general ledger of Ramsey's, a 100-seat restaurant, as of December 31, 20X3, includes revenue and expense accounts as follows: Management Salaries Staff Wages Payroll Taxes Fringe Benefits (excludes employee meals) Employee Meals $ 150,000 280,000 30,000 50,000 5,000 Food Sales Beverage Sales Food Purchases Beverage Purchases Merchandise Sales 1,200,000 500,000 460,000 130,000 30,000 Direct Operating Expenses Music Marketing Heat, Light, and Power Rent 100,000 20,000 30,000 35,000 152,000 Interest Expense Depreciation Repairs Administrative and General Cost of Merchandise Sales 20,000 50,000 30,000 92,000 10,000 Other information is as follows: Income tax rate -30 percent on pretax income Inventories 1/1/X3 12/31/X3 Food $20,000 $22,000 Beverage 15,000 17,000 Required: Prepare Ramsey's income statement for 20X3 in accordance with the USAR