Problem 19 The Black Beach Motel (BBM) has three operated departments,rooms, food, and gift shop. The following information is supplied to you as of December 31, 20X1. 'repare a summary income statement for 20X1 for the Black Beach Motel based on the The Income Statement 137 Account Insurance (fire) Account Balance Rooms department -salaries and wages $ 20,000 Food department --salaries and wages 100,000 Gift shop-salaries and wages 80,000 Supplies --food department 5,000 Food purchases 30,000 Room sales 80,000 Interest income 600,000 Interest expense Cost of food sold 50,000 ? Food sales A&G-Wages 300,000 Advertising 40,000 Maintenance-contract 8,000 Information & telecommunications systems-contract 25,000 15,000 Depreciation 60,000 Heat 15,000 Power and lights 12,000 Supplies and other-rooms department 40,000 Property taxes 12,000 A&G-other expenses 20,000 Gift shop sales 16,000 Gift shop-cost of sales 10,000 Gift shop-other expenses 3.000 Management fee 2 Marketing-wages 20,000 Rent 5.000 Other information: 1. The BBM invested $100,000 on April 1, 20x1, in a certificate of deposit earning an annual rate of 8 percent. 2. The beginning and ending inventories of food were $4,000 and $6,000 respectively. Food consumed by the department employees during the year (free of charge) was as follows: Rooms $ 600 Food 1,000 A&G 300 3. Benefits and payroll taxes for all employees, excluding free food, are 25 gross salaries and wages. 4 The BBM pays an average of 30 percent of its pretax income to the various governmen- tal units in the form of income taxes. 5. The management fee to be paid to the management company is 5 percent of total sales and 8 percent of total income before management fees and fixed charges. percent of Required: format of Exhibit 4. Problem 19 The Black Beach Motel (BBM) has three operated departments,rooms, food, and gift shop. The following information is supplied to you as of December 31, 20X1. 'repare a summary income statement for 20X1 for the Black Beach Motel based on the The Income Statement 137 Account Insurance (fire) Account Balance Rooms department -salaries and wages $ 20,000 Food department --salaries and wages 100,000 Gift shop-salaries and wages 80,000 Supplies --food department 5,000 Food purchases 30,000 Room sales 80,000 Interest income 600,000 Interest expense Cost of food sold 50,000 ? Food sales A&G-Wages 300,000 Advertising 40,000 Maintenance-contract 8,000 Information & telecommunications systems-contract 25,000 15,000 Depreciation 60,000 Heat 15,000 Power and lights 12,000 Supplies and other-rooms department 40,000 Property taxes 12,000 A&G-other expenses 20,000 Gift shop sales 16,000 Gift shop-cost of sales 10,000 Gift shop-other expenses 3.000 Management fee 2 Marketing-wages 20,000 Rent 5.000 Other information: 1. The BBM invested $100,000 on April 1, 20x1, in a certificate of deposit earning an annual rate of 8 percent. 2. The beginning and ending inventories of food were $4,000 and $6,000 respectively. Food consumed by the department employees during the year (free of charge) was as follows: Rooms $ 600 Food 1,000 A&G 300 3. Benefits and payroll taxes for all employees, excluding free food, are 25 gross salaries and wages. 4 The BBM pays an average of 30 percent of its pretax income to the various governmen- tal units in the form of income taxes. 5. The management fee to be paid to the management company is 5 percent of total sales and 8 percent of total income before management fees and fixed charges. percent of Required: format of Exhibit 4
