The KA Motel (KAM) has two operated departments: rooms and food. The following information is supplied to you as of December 31, 2020. Account Account Balance Rooms department- salaries and wages EUR 350,000 Food department- salaries and wages EUR 200,000 Supplies and other- food department EUR 40,000 Food purchases EUR 220,000 Rental revenue (lobby space) EUR 21,000 Room sales EUR 1,400,000 Cost of food sold ? Food sales EUR 500,000 Food- allowances EUR 3,000 Supplies and other- room department EUR 50,000 Other information is as follows: -The beginning and ending inventories of food were EUR 5,000 and 7.000 respectively. Food consumed by the food and A&G department employees during the year (free of charge) totaled EUR 2,000 and EUR 1,000 respectively. -Fringe benefits and payroll taxes for all employees, including free food, are 30 percent of gross salaries and wages. Required: Prepare the top portion- that is, the operated departments section- of the income statement according with the USALI.
The KA Motel (KAM) has two operated departments: rooms and food. The following information is supplied to you as of December 31, 2020.
|
Account |
Account Balance |
|
Rooms department- salaries and wages |
EUR 350,000 |
|
Food department- salaries and wages |
EUR 200,000 |
|
Supplies and other- food department |
EUR 40,000 |
|
Food purchases |
EUR 220,000 |
|
Rental revenue (lobby space) |
EUR 21,000 |
|
Room sales |
EUR 1,400,000 |
|
Cost of food sold |
? |
|
Food sales |
EUR 500,000 |
|
Food- allowances |
EUR 3,000 |
|
Supplies and other- room department |
EUR 50,000 |
Other information is as follows:
-The beginning and ending inventories of food were EUR 5,000 and 7.000 respectively. Food consumed by the food and A&G department employees during the year (free of charge) totaled EUR 2,000 and EUR 1,000 respectively.
-
Required: Prepare the top portion- that is, the operated departments section- of the income statement according with the USALI.
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