Using the attached data (line items) for Topper Hotel, as of December 31, 2010, prepare an income statement and balance sheet for the end of the fiscal year - December 31, 2010.

For the income statement, complete the following in the spreadsheet above:

(a) Rooms department income (loss)-year 2010

(b) Food department income (loss) - year 2010

(c) Telecommunications department income (loss) - year 2010 (d) Rentals and other income-year 2010 (e) Total operated departments income (loss)-year 2010 (f) Total undistributed operating expenses.,.--year 2010 (g) Income after Undistributed Operating Expenses-year 2010

Accounts receivablenet of allowance for doubtful accounts of $3,000 Accounts payable General and Adm.-payroll and related expenses Generalother expenses Telecommunicationscost of sales Room sales Food sales Telecommunications sales Marketingother expenses Property operations and maintenance-payroll Property operations and maintenance- other expenses Utility costs Accumulated depreciation Investments Store rentals Interest expense Other income Rooms-payroll Rooms-guest supplies Roomslinen and laundry Telecommunicationspayroll Telecommunicationsother expenses Transportation-other Depreciation Prepaid insurance $ 120,000 Land 155,000 Building 50,000 Furniture and equipment 97,000 Cash 20,500 Loss on sale of land 780,000 Income tax expense 550,000 Insurance 43,000 Real estate taxes 50,000 Income taxes payable 40,000 Bonds payable Bad debt expense 20,000 Accrued expenses 40,000 Inventories 350,000 Common stock400,000 shares 30,000 outstanding$1 par value 20,000 Dividends payable (representing 110,000 the only dividends declared 40,000 during the year ended 150,000 Dec. 31, 2010) 15,000 Retained earnings-balance 50,000 Jan 1, 2010 28,000 Foodcost of sales 2,500 Foodpayroll 2,000 Foodother expenses $ 80,000 6,000 300,000 1,500,000 100,000 65,000 30,000 70,000 10,000 45,000 14,000 1,000,000 3,000 55,000 105,000 400,000 50,000 202,000 200,000 180,000 70,000 A B D E F 1 Net Revenue Cost of Sales Payroll & Related Expenses Other Expenses Income (Loss) 2 Operated Departments 3 Rooms 4 Food 5 Telecommunications 6 Rentals 7 Other Income 8 Total Operated departments 9 10 Undistributed Operating Expenses 11 Administrative and General 12 Marketing 13 Transportation 14 Property operation & maintenance 15 Utility Costs 16 Total Undistributed operating expenses 17 18 Income after undistributed operating expenses A B D E F [Topper Hotel] 1 2 3 Balance Sheet 12/31/10 Date: 2010 Assets Current Assets Cash Accounts receivable Inventories Prepaid expenses Total current assets Fixed (Long-Term) Assets Land Building Furniture and equipment (Less accumulated depreciation) Total fixed assets Other Assets Investments Total Other Assets Total Assets 4. 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 Liabilities and Owner's Equity Current Liabilities Accounts payable Dividends Payable Income taxes payable Accrued expenses Long-Term Liabilities Bonds payable Total long-term liabilities Owner's Equity Common stock-$1 Par - 400,000 shares outstanding Retained earnings Total owner's equity Total Liabilities and Owner's Equity Common Financial Ratios Debt Ratio (Total Liabilities / Total Assets) Current Ratio (Current Assets / Current Liabilities) Working Capital (Current Assets - Current Liabilities) Assets-to-Equity Ratio (Total Assets / Owner's Equity) Debt-to-Equity Ratio (Total Liabilities / Owner's Equity) Accounts receivablenet of allowance for doubtful accounts of $3,000 Accounts payable General and Adm.-payroll and related expenses Generalother expenses Telecommunicationscost of sales Room sales Food sales Telecommunications sales Marketingother expenses Property operations and maintenance-payroll Property operations and maintenance- other expenses Utility costs Accumulated depreciation Investments Store rentals Interest expense Other income Rooms-payroll Rooms-guest supplies Roomslinen and laundry Telecommunicationspayroll Telecommunicationsother expenses Transportation-other Depreciation Prepaid insurance $ 120,000 Land 155,000 Building 50,000 Furniture and equipment 97,000 Cash 20,500 Loss on sale of land 780,000 Income tax expense 550,000 Insurance 43,000 Real estate taxes 50,000 Income taxes payable 40,000 Bonds payable Bad debt expense 20,000 Accrued expenses 40,000 Inventories 350,000 Common stock400,000 shares 30,000 outstanding$1 par value 20,000 Dividends payable (representing 110,000 the only dividends declared 40,000 during the year ended 150,000 Dec. 31, 2010) 15,000 Retained earnings-balance 50,000 Jan 1, 2010 28,000 Foodcost of sales 2,500 Foodpayroll 2,000 Foodother expenses $ 80,000 6,000 300,000 1,500,000 100,000 65,000 30,000 70,000 10,000 45,000 14,000 1,000,000 3,000 55,000 105,000 400,000 50,000 202,000 200,000 180,000 70,000 A B D E F 1 Net Revenue Cost of Sales Payroll & Related Expenses Other Expenses Income (Loss) 2 Operated Departments 3 Rooms 4 Food 5 Telecommunications 6 Rentals 7 Other Income 8 Total Operated departments 9 10 Undistributed Operating Expenses 11 Administrative and General 12 Marketing 13 Transportation 14 Property operation & maintenance 15 Utility Costs 16 Total Undistributed operating expenses 17 18 Income after undistributed operating expenses A B D E F [Topper Hotel] 1 2 3 Balance Sheet 12/31/10 Date: 2010 Assets Current Assets Cash Accounts receivable Inventories Prepaid expenses Total current assets Fixed (Long-Term) Assets Land Building Furniture and equipment (Less accumulated depreciation) Total fixed assets Other Assets Investments Total Other Assets Total Assets 4. 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 Liabilities and Owner's Equity Current Liabilities Accounts payable Dividends Payable Income taxes payable Accrued expenses Long-Term Liabilities Bonds payable Total long-term liabilities Owner's Equity Common stock-$1 Par - 400,000 shares outstanding Retained earnings Total owner's equity Total Liabilities and Owner's Equity Common Financial Ratios Debt Ratio (Total Liabilities / Total Assets) Current Ratio (Current Assets / Current Liabilities) Working Capital (Current Assets - Current Liabilities) Assets-to-Equity Ratio (Total Assets / Owner's Equity) Debt-to-Equity Ratio (Total Liabilities / Owner's Equity)