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, 2012, and the amounts shown for income statement items are balances for the month ended September 30, 2012. Accounts payable $17,600 Furniture and fixtures $34,000 Accounts receivable 6,410 Land 26,000 Advertising expense 14,500 Notes payable 20,000 Buildings 60,000 Projection equipment 25,000
- Capital stock 50,000 Rent expense-movies 50,600
- Cash 15,230 Retained earnings 73,780
Concessions revenue 60,300 Salaries and wages expense 46,490 Cost of concessions sold 23,450 Ticket sales 95,100 Dividends paid during the month 8,400 Water, gas, and electricity 6,700.
Required
1. Prepare an income statement for the month ended September 30, 2012.
2. Prepare a statement of retained earnings for the month ended September 30, 2012.
3. Prepare a balance sheet at September 30, 2012.
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.