de. Round a Prepare an income statement figures to the nearest $1. Problem 25 The Kaminski Motel (KM) has two major operated departments: rooms and food. The following information is supplied to you as of December 31, 20X2. Accounts Balance Account Jannol 24 Insurance (fire) Rooms Department-Salaries and Wages Food Department-Salaries and Wages abon oH Supplies and Other-Food Department 90,000 60,000 ni bt 20,000 65,000 550,000 euvni Food Purchases Room Sales Interest Income Cost of Food Sold Food Sales Administrative and General-Salaries Advertising Maintenance-Contract ? 00 e n 250,000 60,000 12,000 40,000 Depreciation Electricity Interest Expense Information and Telecommunications Systems Amortization of Intangible Assets Supplies and Other-Rooms Department Property Taxes Administrative and General-Other Expenses The Income Statement 143 40,000 15,000 30,000 12,000 5,000 30,000 15,000 15,000 Franchise Fees Room-Allowances Ceher information is as follows: The KM invested $30,000 on July 1, 20X2, in Daytona Aircraft Bonds. The funds were 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 1,000 1. percent of gross salaries and wages. 4. The KM pays an average of 30 percent of its pretax income to the various g tal units in the form of income taxes, - The management fee to be paid to the management company is 2 percent of net rooms sales and 6 percent of GOP. 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) is paid to Best Eastern Corporation at a rate of 3 percent of net rooms sales and 2 percent of net food sales. governmen- Prepare the modified income statement for 20X2. Use Exhibit 4 as a guide. Round to the nearest $1. Required: * allawance takes durectly revenul frum