Question

Robert Granville is the owner of the Altuna Cinema. During January the following occurred: advertising expense of $750; revenue from ticket sales $13,450; maintenance expense of $520; salaries expense of $2340; rent expense of $1100; film rental expense of $6725; concession revenue of $1500; utilities expense of $355.

Granville had a capital balance on January 1 of $25,000. During the month of January, he withdrew $1200 in anticipation of profits from the Cinema.

The assets and liabilities of the Altuna Cinema on January 31 were: cash of $5320; projection equipment of $12400; display fixtures of $7250; ticket supplies of $1300; projection supplies of $450; cleaning supplies of $150; account payable of $2200, and furniture of $2290.

Prepare a balance sheet and income statement for the Altuna Cinema as of January 31.

Answer 1

Income statement and balance sheet

Expenses	Amount		Income	Amount
Advertising	750		Ticketing revenue	13450
Maintenance	520		Concession revenue	1500
Salary	2340
Rent	1100
Film rental	6725
Utilities	355
Profit for the month(balance carries to balance sheet)	3160
TOTAL	14950		TOTAL	14950
Balance sheet LIABILITIES			Balance sheet ASSETS
Capital	25000		cash	5320
Withdrawal in anticipation of profits	-1200		Projection equipment	12400
Profits of the month (from income statement)	3160		Display fixtures	7250
Accounts payable	2200		Ticket supplies	1300
			Projection supplies	450
			Cleaning supplies	150
			Furniture	2290
TOTAL	29160		TOTAL	29160