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 earnings, 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
Required
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?