PROBLEM , please finish Required : Prepare the modified income statement for 2002. Use Exhibit 4 as guide.

Income Statement 175Problem 15The Kaminski Motel ( KM has two major operated departments : rooms and food . ThThe wing information is supplied to you as of December 31 20 * 2 :er 31 , 20AccountAccount BalanceInsurance ( fire )Rooms Department - Salaries and WagesFood Department - Salaries and Wages90 90060 090Supplies and Other - Food Departmen20 000Food Purchases65,000Room Sales50.000Interest IncomCost of Food Soldgod Sales50 090Administrative and General - Salaries60 000AdvertisingMaintenance - Contract40.000Depreciation40,000Electricity15,000Heating Oil2 000Amortization of Intangible Assets5 000Supplies and Other - Rooms Departme30 000Property Taxes5 000Administrative and General - Other Expenses15 000Franchise FeeRoom - Allowances1000The KM invested $30 ,100 on July 1 20* 2 in Daytona Aircraft Bonds . The funds we funds wereinvested at an annual interest rate of 12 percentThe beginning and ending inventories of food were $5000 and $4 , 000 , respectivelyFood consumed by the food and rooms department employees during the year ( free ofthe yearcharge ) totaled $500 and $300 , respectively .3 . Fringe benefits and payroll taxes for all employees , inclusive of employee meals , are 20percent of gross salaries and wages4 . TheThe KM pays an average of 30 percent of its pretax income to the various governmental units in the form of income taxes .The management fee to be paid to the management company is 2 percent of net roomsales and 6 percent of total income before management fees and fixed charges6 . Fire insurance protection was secured on June 1 20 * 1 , for a two year period of coverage from July 1 20* 1 , through June 30 20*3 . The two - year premium was $36 090 .7 . FranFranchise fees ( a marketing expense ) is paid to Best Eastern Corporation at a rate ofpercent of net room sales and 2 percent of net food salesRequiredPrepare the modified income statement for 20* 2 . Use Exhibit 4 as a guide