Reference no: EM132224268
Question - The general ledger of Ramsey's a 100-seat restaurant, as of December 31, 20X3, includes revenue and expense accounts as follows :
Management Salaries - $150,000
Staff Wages - 280,000
Payroll Taxes - 30,000
Fringe Benefits (excludes employee meals) - 50,000
Employee Meals - 5,000
Food Sales - 1,200,000
Beverage Sales - 500,000
Food Purchases - 460,000
Beverage Purchase - 130,000
Merchandise Sales - 30,000
Direct Operating Expenses - 100,000
Music - 20,000
Marketing - 30,000
Heat, Light, and Power - 35,000
Rent - 152,000
Interest Expense - 20,000
Depreciation - 50,000
Repairs - 30,000
Administrative and General - 92,000
Cost of Merchandise Sale - 10,000
Other information is as follows:
Income tax rate - 30 percent on pretax income
Inventories
|
1/1/X3
|
12/31/X3
|
Food
|
$20,000
|
$22,000
|
Beverage
|
15,000
|
17,000
|
Required: Prepare Ramsey's income statement for 20X3 in accordance with the USAR.