Problem - The following list, in alphabetical order, shows the various items that regularly appear on the financial statements of Maple Park Theaters Corp. The amounts shown for the balance sheet items are as of September 30, 2010 (with the exception of retained earnings, which is the balance on September 1, 2010).
Prepare a balance sheet at 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
Prepare income statement for month ended Sept 30, 2010.
Prepare statement of retained earnings for month ended Sept 30, 2010.
Prepare Balance sheet at Sept 30, 2010.
You have $1000 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?