Analysis of the transactions of the Moonlight Drive-In Theater for June 2010 disclosed
the following:
|
Ticket revenue |
USD 180000 |
|
Equipment rent expense |
50000 |
|
Film rent expense |
53400 |
|
Concession revenue |
29600 |
|
Advertising expense |
18600 |
|
Salaries expense |
60000 |
|
Utilities expense |
14100 |
|
Cash dividends declared and paid |
12000 |
Balance sheet amounts at June 30 include the following:
|
Cash |
USD 140,000 |
|
Land |
148000 |
|
Accounts payable |
87600 |
|
Capital stock |
114000 |
|
Retained earnings as of 2010 June 1 |
84900 |
a. Prepare an income statement for June 2010.
b. Prepare a statement of retained earnings for June 2010.
c. Prepare a balance sheet as of 2010 June 30.
d. How solvent does this company appear to be?