Shown below, in alphabetical order, is a list of 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 20, 2004 (with the exception of Retained Earnings, which is the balance on September 1, 2004), and the amounts shown for income statement items are balances for the month ended September 30, 2004:
|
Accounts payable
|
$17,600
|
|
Accounts receivable
|
6,410
|
|
Advertising expense
|
14,500
|
|
Buildings
|
60,000
|
|
Capital stock
|
50,000
|
|
Cash
|
15,230
|
|
Concessions revenue
|
60,300
|
|
Cost of concessions sold
|
23,450
|
|
Dividends paid during the month
|
8,400
|
|
Furniture and fixtures
|
34,000
|
|
Land
|
26,000
|
|
Notes payable
|
20,000
|
|
Projection equipment
|
25,000
|
|
Rent expense-movies
|
50,600
|
|
Retained earnings
|
73,780
|
|
Salaries and wages expense
|
46,490
|
|
Ticket sales
|
95,100
|
|
Water, gas, electricity
|
6,700
|
1. Prepare an income statement for the month ended September 30, 2004.
2. Prepare a statement of retained earnings for the month ended September 30, 2004.
3. Prepare a balance sheet at September 30, 2004.
4. You have $1000 to invest. On the basis of the statements prepared, would you use it to buy stock in Maple Park? What other information would you want before making a final decision?