As the accountant of Grandeur Hotel, you are responsible for preparing their financial statements. The following information was extracted from the accounts of the hotel for the year ended December 31, 2020.

$

Revenue

Rooms

3,000,000

Food

950,000

Beverage

780,000

Laundry

800,000

Recreation

250,000

Costs and other data

Opening Stock- Food

160,000

Opening Stock - Beverage

40,000

Purchases

Food

790,000

Beverage

950,000

Departmental Payroll Expenses

Rooms

170,000

Food

220,000

Beverage

130,000

Laundry

85,000

Administrative & General

470,000

Marketing

325,000

Property Operation & Maintenance

80,000

Other Departmental Expenses

Rooms

123,000

Food

66,000

Beverage

77,000

Telephone

71,000

Admin & General

90,000

Marketing

100,000

Electricity

130,000

Property Operation & Maintenance

50,000

Fixed Charges

Property Taxes and fixed rates

90,000

(See notes)

Notes:

1.Depreciation should be calculated as follows:

Laundry Equipment: Cost $500,000, rate of depreciation 10%, double declining method.

Tools:Cost $300,000; Useful life 5 years; Residual value $100,000, straight line method.

2.Accrued expenses are: (a) Telephone $6,000 (b) Electricity $10,000

3.Income tax is to be charged at a rate of 25%.

4. Closing stock:

Food $120,000

Beverage $180,000

Required

write a Income Statement based on the uniform system of accounts format. Show workings for cost of sales.