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

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