Problem 19 The Black Beach Motel (BBM) has three operated departments-rooms, food, and gift shop. The...

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Problem 19 The Black Beach Motel (BBM) has three operated departments-rooms, food, and gift shop. The following information is supplied to you as of December 31, 20X1. The Income Statement 137 Account of maldovi Account Balance Insurance (fire) Rooms department-salaries and wages Food department-salaries and wages (M$ 20,000 duelno 100,000 80,000 Gift shop-salaries and wages Supplies-food department Food purchases Room sales 25,000 30,000 80,000 600,000 Interest income ? 50,000 ? Interest expense Cost of food sold Food sales A&G-wages Advertising 300,000 40,000 8,000 Maintenance-contract 25,000 15,000 Information & telecommunications systems-contract Depreciation 60,000 Heat M15,000 Power and lights 12,000 Supplies and other-rooms department 40,000 Property taxes 12,000 A&G-other expenses 20,000 Gift shop sales 16,000 Gift shop-cost of sales te 10,000 3,000 Gift shop-other expenses Management fee Marketing-wages ? 20,000 5,000 Rent Other information: 1. The BBM invested $100,000 on April 1, 20X1, in a certificate of deposit earning an annual rate of 8 percent. 2. The beginning and ending inventories of food were $4,000 and $6,000 respectively. Food consumed by the department employees during the year (free of charge) was as follows: $ 600 Rooms Food A&G 1,000 300 3. Benefits and payroll taxes for all employees, excluding free food, are 25 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 5 percent of total sales and 8 percent of total income before management fees and fixed charges. Required: Prepare a summary income statement for 20X1 for the Black Beach Motel based on the format of Exhibit 4. Problem 19 The Black Beach Motel (BBM) has three operated departments-rooms, food, and gift shop. The following information is supplied to you as of December 31, 20X1. The Income Statement 137 Account of maldovi Account Balance Insurance (fire) Rooms department-salaries and wages Food department-salaries and wages (M$ 20,000 duelno 100,000 80,000 Gift shop-salaries and wages Supplies-food department Food purchases Room sales 25,000 30,000 80,000 600,000 Interest income ? 50,000 ? Interest expense Cost of food sold Food sales A&G-wages Advertising 300,000 40,000 8,000 Maintenance-contract 25,000 15,000 Information & telecommunications systems-contract Depreciation 60,000 Heat M15,000 Power and lights 12,000 Supplies and other-rooms department 40,000 Property taxes 12,000 A&G-other expenses 20,000 Gift shop sales 16,000 Gift shop-cost of sales te 10,000 3,000 Gift shop-other expenses Management fee Marketing-wages ? 20,000 5,000 Rent Other information: 1. The BBM invested $100,000 on April 1, 20X1, in a certificate of deposit earning an annual rate of 8 percent. 2. The beginning and ending inventories of food were $4,000 and $6,000 respectively. Food consumed by the department employees during the year (free of charge) was as follows: $ 600 Rooms Food A&G 1,000 300 3. Benefits and payroll taxes for all employees, excluding free food, are 25 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 5 percent of total sales and 8 percent of total income before management fees and fixed charges. Required: Prepare a summary income statement for 20X1 for the Black Beach Motel based on the format of Exhibit 4.

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