The JW Motel has two operated departments: rooms and food. The following information is supplied to you as of December 31, 20X2:

Account: Account Balance:

Rooms department- salaries and wages $350,000

Food Department- salaries and wages $200,000

Management Fees ?

Supplies and other-food department $40,000

Food Purchases $220,000

Room Sales $1,400,000

Interest Expense ?

Cost of Food Sold ?

Food Sales $500,000

A&G- salaries $100,000

Franchise fees $60,000

Maintenance- contract $60,000

Depreciation $80,000

Heat, light, and power $50,000

Water $20,000

Food- allowances $3,000

Info & telecom systems- contract $20,000

Marketing Expenses- advertising $30,000

Insurance (fire) $50,000

Supplies and other- room department $50,000

Property Taxes $50,000

A&G- other expenses $40,000

Other information is as follows:

1. The JW Motel borrowed $1,000,000 from the Red Cedar Bank on April 1, 20X2. The annual interest rate is 10%

2. The beginning and ending inventories on food were $5,000 and $7,000, respectively. Food consumed by the food and A&G department employees during the year (free of charge) totaled $2,000 and $1,000, repectively.

3. Fringe benefits and payroll taxes for all employees, including free food, are 30 percent of gross salaries and wages.

4. The JW Motel pays an average of 25% of its pretax income to various governmental units in the form of income taxes.

5. The management fee to be paid to the management company is 2 percent of total net revenue and 5 percent of total income after undistributed operating expenses.

6. An investment in Marriott stock that cost $10,000 is sold for $15,000.

7. A van that cost $25,000 was sold for $2,000. Its net book value at the time of the sale was $5,000.

8. A one year certificate of deposit was purchased at the Spartan National Bank; $100,000 was invested on September 1, 20X2. The annual interest rate is 6 percent.

REQUIRED:::

Prepare an Income Statement for 20X2 for the JW Motel .