The XYZ Hotel and Restaurant has three major operated departments Food, Beverage and Rooms The following information is supplied to you as of December 31st 2019 Account Account Balance Rooms department salaries and wages Food & Beverage department salaries and wages Supplies food department Food purchases Beverage purchases Room sales terest income 5.000 158.000 154 20.000 55.00 50.000 SRD 000 1.000 30 000 52200 Cost of food sold Beverage les Food sales Administrative and General - wages Advertising Maintenance-contract Depreciation Heat Electric and Gas Franchise Fee Supplies and other rooms department Administrative and General other expenses 256,000 212 000 50.000 10.000 30,000 50,000 15.000 12.000 30.000 12.000 10,000 Other information The XY2 Motel borrowed $150,000 two years ago from the bank, no interest was paid, except on June 30 2019, the first non interest payment was made to the bank of $10,000 The funds on were borrowed at an interest rate of 10% The beginning and ending inventories of food were $ 14000 and $16000 respectively Food consumed by the food and rooms department employees during the year totaled $1.500 and $1300 respectively The beginning and ending inventories of beverage were $10000 and 56000 respectively Payroll and benefits taxes for all employees, excluding employees' food consumed, are 25% of gross salaries and wages The XYZ Motel as an average of 21% of its pretax income as income tax Management fee is to be paid to the management company as follows: ex of room sales and 15% of income after undistributed operating expenses-before interest and income tax Cost of Sales Schedules for Food and Beverages 2 Page 62 for omple of . income statement using Summary Department format at December 31 2019 See presentation format Classified Balance Sheetasat December 31st 2019. See 27, page for example of presentation format) USB Net Sales Revenue Cost of Sales Payroll & Other Expenses Operating Operating Expenses Income $1,150,200 851,600 327,400 38,200 $2,367,400 $251,400 311,900 86,300 8,700 $658,300 $115,900 64,300 15,200 $322,400 106,800 10,600 $439,800 $ 782,900 153,000 119,100 18,600 $1,073,600 300 $195,700 Departmental Income (Loss) Rooms Food Beverage Other income Operating Department Totals Undistributed Operating Expenses Administrative and general Marketing Property operation & maintenance Energy costs Total undistributed operating expenses Income before Fixed Charges Fixed Charges Property taxes Insurance Interest Depreciation Operating Income (before income tax) Income tax Net Income $115,600 35,100 52,900 15,800 $219,400 $122,400 31,800 49,100 55,200 $258,500 ( 477,900) $ 595,700 $ 98,800 22,400 82,400 160,900 (364,500) $ 231,200 114,700) $ 116,500 EXHIBIT 2.3 Assets $ 27,900 2,480 20.620 10,000 Liabilities and Stockholders' Equity Current Liabilities Accounts payable-trade Accrued expenses Income tax payable Deposits and credit balances Current portion, long-term mortgage payable Total Current Liabilities Current Assets Cash Credit card receivables Accounts receivable (net) Marketable securities, at cost (Market value $10,500) Food inventory Beverage inventory Supplies Prepaid expenses Total Current Assets 19.200 3.500 12,300 500 27,200 $ 62,700 8.200 9,600 2.100 5,200 25,100 86,100 $ Liabilities & Stockholders' Equity $ 315,800 Property, Plant, and Equipment Land (at cost) Building Less: Accumulated Equipment Less: Accumulated Furniture Long-term Liabilities Mortgage payable (building) Less: Current portion payable Total Liabilities $840,100 (27,200) 1,075,900 $ 875,600 $1,432,800 (356,900) 281,025 ( 206,475) $ 93,675 74,550 Stockholders' Equity Capital Stock: $100 par, 5,000 Authorized, 3,000 shares issued and outstanding ( 68,825) 24,850 25,600 $300,000 Less: Accumulated Tableware, linen, & uniforms Total Property, Plant, and Equipment Other assets: Organization expense Total Assets 171.516,700 Retained Earnings 5,800 $1,608,600 Total Liabilities & Stockholders' Equity $1,608,600 EXHIBIT 2.7 The XYZ Hotel and Restaurant has three major operated departments Food, Beverage and Rooms The following information is supplied to you as of December 31st 2019 Account Account Balance Rooms department salaries and wages Food & Beverage department salaries and wages Supplies food department Food purchases Beverage purchases Room sales terest income 5.000 158.000 154 20.000 55.00 50.000 SRD 000 1.000 30 000 52200 Cost of food sold Beverage les Food sales Administrative and General - wages Advertising Maintenance-contract Depreciation Heat Electric and Gas Franchise Fee Supplies and other rooms department Administrative and General other expenses 256,000 212 000 50.000 10.000 30,000 50,000 15.000 12.000 30.000 12.000 10,000 Other information The XY2 Motel borrowed $150,000 two years ago from the bank, no interest was paid, except on June 30 2019, the first non interest payment was made to the bank of $10,000 The funds on were borrowed at an interest rate of 10% The beginning and ending inventories of food were $ 14000 and $16000 respectively Food consumed by the food and rooms department employees during the year totaled $1.500 and $1300 respectively The beginning and ending inventories of beverage were $10000 and 56000 respectively Payroll and benefits taxes for all employees, excluding employees' food consumed, are 25% of gross salaries and wages The XYZ Motel as an average of 21% of its pretax income as income tax Management fee is to be paid to the management company as follows: ex of room sales and 15% of income after undistributed operating expenses-before interest and income tax Cost of Sales Schedules for Food and Beverages 2 Page 62 for omple of . income statement using Summary Department format at December 31 2019 See presentation format Classified Balance Sheetasat December 31st 2019. See 27, page for example of presentation format) USB Net Sales Revenue Cost of Sales Payroll & Other Expenses Operating Operating Expenses Income $1,150,200 851,600 327,400 38,200 $2,367,400 $251,400 311,900 86,300 8,700 $658,300 $115,900 64,300 15,200 $322,400 106,800 10,600 $439,800 $ 782,900 153,000 119,100 18,600 $1,073,600 300 $195,700 Departmental Income (Loss) Rooms Food Beverage Other income Operating Department Totals Undistributed Operating Expenses Administrative and general Marketing Property operation & maintenance Energy costs Total undistributed operating expenses Income before Fixed Charges Fixed Charges Property taxes Insurance Interest Depreciation Operating Income (before income tax) Income tax Net Income $115,600 35,100 52,900 15,800 $219,400 $122,400 31,800 49,100 55,200 $258,500 ( 477,900) $ 595,700 $ 98,800 22,400 82,400 160,900 (364,500) $ 231,200 114,700) $ 116,500 EXHIBIT 2.3 Assets $ 27,900 2,480 20.620 10,000 Liabilities and Stockholders' Equity Current Liabilities Accounts payable-trade Accrued expenses Income tax payable Deposits and credit balances Current portion, long-term mortgage payable Total Current Liabilities Current Assets Cash Credit card receivables Accounts receivable (net) Marketable securities, at cost (Market value $10,500) Food inventory Beverage inventory Supplies Prepaid expenses Total Current Assets 19.200 3.500 12,300 500 27,200 $ 62,700 8.200 9,600 2.100 5,200 25,100 86,100 $ Liabilities & Stockholders' Equity $ 315,800 Property, Plant, and Equipment Land (at cost) Building Less: Accumulated Equipment Less: Accumulated Furniture Long-term Liabilities Mortgage payable (building) Less: Current portion payable Total Liabilities $840,100 (27,200) 1,075,900 $ 875,600 $1,432,800 (356,900) 281,025 ( 206,475) $ 93,675 74,550 Stockholders' Equity Capital Stock: $100 par, 5,000 Authorized, 3,000 shares issued and outstanding ( 68,825) 24,850 25,600 $300,000 Less: Accumulated Tableware, linen, & uniforms Total Property, Plant, and Equipment Other assets: Organization expense Total Assets 171.516,700 Retained Earnings 5,800 $1,608,600 Total Liabilities & Stockholders' Equity $1,608,600 EXHIBIT 2.7