P1-5 The following list, in alphabetical order, shows the various items taccounting teacher
P1-5 Maple Park Theatres Corp
Problem 1-5 Income Statement, Statement of Retained Earnings, and Balance Sheet
P1-5 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, 2014 (with the exception of retained earn- ings, which is the balance on September 1, 2014), and the amounts shown for income statement items are balances for the month ended September 30, 2014.
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
1.Prepare an income statement for the month ended September 30, 2014.
2. Prepare a statement of retained earnings for the month ended September 30, 2014.
3. Prepare a balance sheet at September 30, 2014.
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?
Hint: First determine if an account is an asset, a liability, stockholders' equity, revenue, or expense, and then put a check mark by each item as you use it in preparing the financial statements to ensure you account for everything. Format is important, including a proper heading, so the user of the statement knows what they are reading.
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