Problem 1-5 Income Statement, Statement of Retained Earnings

| March 31, 2017

Question
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, 2012 (with the exception of retained earnings, which is the balance

on September 1, 2012), and the amounts shown for income statement items are balances for the

month ended September 30,2012.

~ 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, 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?

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