PLEASE HELP ME Problem 16The Milford Motel (MM) has two major operated departments: rooms and food. Thefollowing information is supplied to you as of December 31, 20X7:AccountInsurance (fire)Rooms department-salaries and wagesFood department-salaries and wagesManagement feesSupplies and other-food departmentFood purchasesRoom salesInterest expenseCost of food soldFood salesA&G-salaries and wagesFranchise feesAccount Balance$ 20,000$300,000$ 200,000$?$ 40,000$ 200,000$1,210,000$$??$ 450,000$ 120,000$20,000 Maintenance-contractInformation & telecom. systems-contractDepreciationHeat, light, & powerWaterRooms-allowancesMarketing expenses-advertisingRent expensesSupplies and other-room departmentProperty taxesA&G-other expensesThe Income Statement 135.$ 40,000$30,000$80,00050,00020,00010,00050,00010,00050,000$$$$ 40,000$60,000Other information is as follows:1. The MM borrowed $1,000,000 from the Red Cedar Bank on July 1, 20X7. The annualinterest rate is 12 percent.2.The beginning and ending inventories of food were $7,000 and $5,000, respectively.Food consumed by the food and rooms department employees during the year (free ofcharge) totaled $1,000 and $3,000, respectively.3. Fringe benefits and payroll taxes for all employees, excluding free food, are 30 percentof gross salaries and wages.4. The MM pays an average of 30 percent of its pre-tax income to various governmentalunits in the form of income taxes.5.The management fee to be paid to the management company is 2 percent of net roomsales and 10 percent of total gross operating profit.6. An investment in JMB stock that cost $10,000 was sold for $8,000.7. A computer that cost $15,000 was sold for $2,000. Its accumulated depreciation at thetime of sale was $12,000.Required:Prepare an income statement for 20X7 for the MM based on the format of Exhibit 4.

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Problem 16 The Milford Motel (MM) has two major operated departments: rooms and food. The following information is supplied to you as of December 31, 20X7: Account Insurance (fire) Rooms department-salaries and wages Food department-salaries and wages Management fees Supplies and other-food department Food purchases Room sales Interest expense Cost of food sold Food sales A&G-salaries and wages Franchise fees Account Balance $20,000 $ 300,000 $ 200,000 $? $ 40,000 $ 200,000 $1,210,000 $? $ ? $ 450,000 $ 120,000 $ 20,000

Problem 16 The Milford Motel (MM) has two major operated departments: rooms and food. The following information is supplied to you as of December 31, 20X7: Account Insurance (fire) Rooms department-salaries and wages Food department-salaries and wages Management fees Supplies and other-food department Food purchases Room sales Interest expense Cost of food sold Food sales A&G-salaries and wages Franchise fees Account Balance $20,000 $ 300,000 $ 200,000 $? $ 40,000 $ 200,000 $1,210,000 $? $ ? $ 450,000 $ 120,000 $ 20,000

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter11: Accounting For Transactions Using A General Journal

Section11.1: Accounting For Purchases Transactions Using A General Journal

Problem 1OYO

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