Question

Income Statement, Statement of Retained Earnings, and Balance Sheet

The following list, in alphabetical order, shows the various items that regularly appear on the financial statements of Maple Park Theatres Corp. The amounts shown for balance sheet items are balances as of September 30, 2017 (with the exception of retained earnings, which is the balance on September 1, 2017), and the amounts shown for income statement items are balances for the month ended September 30, 2017.

Accounts payable	$17,060		Furniture and fixtures	$32,300
Accounts receivable	6,340		Land	26,200
Advertising expense	14,670		Notes payable	17,000
Buildings	61,800		Projection equipment	23,800
Capital stock	51,000		Rent expense—movies	49,060
Cash	15,350		Retained earnings	71,140
Concessions revenue	61,640		Salaries and wages expense	46,220
Cost of concessions sold	23,160		Ticket sales	96,090
Dividends paid during the month	8,700		Water, gas, and electricity	6,330

1. Using the data given, prepare an income statement for the month ended September 30, 2017.

Maple Park Theatres Corp.
Income Statement
For the Month ended September 30, 2017
Revenues:
	$
Total revenues		$
Expenses:
	$
Total expenses
		$

2. Using the data given, prepare a statement of retained earnings for the month ended September 30, 2017.

Maple Park Theatres Corp.
Statement of Retained Earnings
For the Month ended September 30, 2017
	$
	$

3. Using the data given, prepare a balance sheet at September 30, 2017.

Maple Park Theatres Corp.
Balance Sheet
September 30, 2017
Assets
	$
Total assets	$
Liabilities and stockholders' equity
	$
Total liabilities and stockholders' equity	$

4. You have $1,000 to invest. You want to use it to buy stock in Maple Park? Which of the following information would you least consider before making a final decision?

1.	Whether the company is operating at a profit?
2.	The amount of dividends paid by the company.
3.	The amount of salaries the company pays.
4.	Current market price of the stock.

Answer 1

1			Income statement
						$	$
	Revenues:
	Ticket sales					96090
	Concessions revenue					61640
	Total revenues				A		157730
	Expenses:
	Advertising expense					14670
	Cost of concessions sold					23160
	Rent expense-movies					49060
	Salaries and wages expense					46220
	Water,gas and electricity					6330
	Total expenses						139440
	Net income						18290
2			Statement of Retained earnings
						$
	Beginning balance					71140
	Add: Net income					18290
						89430
	Less: Dividend					8700
	Ending balance					80730
3			Balance sheet
			Assets
						$
	Cash					15350
	Accounts receivable					6340
	Land					26200
	Buildings					61800
	Furniture and fixtures					32300
	Projection equipment					23800
	Total assets					165790
		Liabilities and stockholder's equity
	Accounts payable					17060
	Notes payable					17000
	Capital stock					51000
	Retained earnings					80730
	Total liabilities and stockholder's equity					165790
4	The amount of salaries the company pays