Posted: April 10th, 2016

Prepare an income statement for the month ended September 30, 2012?

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, 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
Accounts receivable
Advertising expense
Buildings
Capital stock
Cash
Concessions revenue
Cost of concessions sold
Dividends paid during the month
Furniture and fixtures
Land
Notes payable
Projection equipment
Rent expense—movies
Retained earnings
Salaries and wages expense
Ticket sales
Water, gas, and electricity

Required

1. Prepare an income statement for the month ended September 30, 2012.

MAPLE PARK THEATRES CORP.
INCOME STATEMENT
FOR THE MONTH ENDED SEPTEMBER 30, 2012

Revenues:
T
T
Total revenues

Expenses:
T
T
T
T
T
Total expenses
Net income

2. Prepare a statement of retained earnings for the month ended September 30, 2012.

MAPLE PARK THEATRES CORP.
STATEMENT OF RETAINED EARNINGS
FOR THE MONTH ENDED SEPTEMBER 30, 2012

Beginning balance, September 1, 2012
T
T
Ending balance, September 30, 2012

3. Prepare a balance sheet at September 30, 2012
Note: Classify Assets and Liabilities in the order of Liquidity

MAPLE PARK THEATRES CORP.
BALANCE SHEET
SEPTEMBER 30, 2012

Assets
T
T
T
T
T
T
Total assets

Liabilities and Stockholders’ Equity
T
T
T
T
Total liabilities and stockholders’ equity

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?

T
$ 17,600
6,410
14,500
60,000
50,000
15,230
60,300
23,450
8,400
34,000
26,000
20,000
25,000
50,600
73,780
46,490
95,100
6,700

F
F
C

F
F
F
F
F
C
C

F
F
F
C

F
F
F
F
F
F
C

F
F
F
F
C
Problem 2-4: Financial Statement Ratios

The following items, in alphabetical order, are available from the records of Walker
Corporation as of December 31, 2012 and 2011:
12/31/12 12/31/11
Accounts payable 8400 5200
Accounts receivable 27830 35770
Cash 20200 19450
Cleaning supplies 450 700
Interest payable 0 1200
Inventory 24600 26200
Marketable securities 6250 5020
Note payable, due in six months 0 12000
Prepaid rent 3600 4800
Taxes payable 1450 1230
Wages payable 1200 1600