The Beach M (RM has woma operated departments rooms and oth Agim you as of December 31, 2012 1. The BBM invested $30,000 on July 1, 20X2, in Daytona Aircraft Bonds. The funds wet Problem 20 138 Che Account Balance Insurance (hine) Rams department-salaries and wages Ford deurtment - salaries and wages Supplies & other --Food department Food purchases Roxam sales Interest income Cost of food sold Rood sales A&G-salaries Advertising Maintenance-contract Information & telecommunications systems Depreciation Electricity Heating oil Amortization of intangible asset Supplies & other-rooms department Property taxes 90.000 60.000 20,000 65.000 550.000 2 2 250,000 60,000 12.000 25,000 15,000 40,000 15,000 12,000 5,000 30,000 15,000 15,000 ? 1,000 A&G-other expense Franchise fees Rooms-allowances Other information is as follows: invested at an annual interest rate of 12 percent. 2 The beginning and ending inventories of food were $5,000 and $4,000, respectively Food consumed by the food and rooms department employees during the year (free of charge) totaled $500 and $300, respectively. 3. Fringe benefits and payroll taxes for all employees, inclusive of employee meals, are 20 percent of 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 2 percent of net room sales and 6 percent of total income before management fees and fixed charges. 6. Fire insurance protection was secured on June 1, 20X1, for a two-year period of cover age from July 1, 20x1, through June 30, 20X3. The two-year premium was $36,000. 7. Franchise fees (a marketing expense) are paid to Best Eastern Corporation at a rate 3 percent of net room sales and 2 percent of net food sales. Prepare an income statement for 20X2 for the BBM based on the format of Exhibit 4. Problem 21 Required