Problem 1-5 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, 2010 (with the exception of retained earn- ings, which is the balance on September 1, 2010), and the amounts shown for income statement items are balances for the month ended September 30, 2010.
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, and electricity 6,700
Required
1.Prepare an income statement for the month ended September 30, 2010.
2.Prepare a statement of retained earnings for the month ended September 30, 2010.
3.Prepare a balance sheet at September 30, 2010.
4.You have $1,000 to invest. On the basis of the statements you prepared, would
you use it to buy stock in Maple Park? Explain. What other information would you want before making a final decision?