Problem 4

You are provided with specific account balances and transaction information for the year for the Nicholback Inn.

Transaction data for 20X3

• Benefits and payroll taxes for all employees are 20 percent of gross salaries and wages.
• The management fee to be paid to the management company is 2 percent of net room revenue and 10 percent of GOP.
• The food purchases totaled $50,000 during the year. Food inventory was $20,000 and $18,000 at the beginning and end of the year, respectively.
• The cost of employee meals totaled $3,000 for the year.

Required:

• Prepare a Summary income statement for the Nicholback Inn in accordance with Exhibit 3 in Chapter 3 of the Text in the area provided on the Problem 4 tab of the Excel file.
• You need only include the line items given; however, they must be in the correct portion of the report format.
• You need only include the current period dollar values, and their percentages as appropriate to either departmental or total revenue.

$6,500 $78,000 - $62,000 - $2,100 $400,000 $1,000 - + Financial Data for 20X3 Insurance (Property) Rooms department - salaries and wages Food department - salaries and wages Supplies - food department Room sales Interest expense Cost of food sold Food sales A&G-salaries Advertising Maintenance -contract Depreciation Heat Information & telecom.systems contract Power and lights Franchise fee Supplies and other rooms department Property taxes A&G - other expense Room allowance $180,000 $6,000 $12,000 $28,000 $18,000 $17,000 $29,000 w $15,000 $20,000 $28,000 - - $13,500 $11,500 $4,000 0