problem 1 460248

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?