Prepare a food department income statement in proper format for the Midlands Restaurant from the...

Question:

Prepare a food department income statement in proper format for the Midlands Restaurant from the following information for the first quarter ended on March 31, year 0004 (other income was received from leasing excess equipment for one month and was not a part of normal operations):

Sales Revenue:
Grill room $153,100
Coffee garden 78,900
Banquets 298,400
Net food costs 211,700
Salaries and wages expense 174,400
Employee meals expense 17,200
Supplies expense 10,300
Glass and tableware expense 4,300
Laundry and linen expense 13,000
License expense 1,900
Printing expense 4,900
Miscellaneous expense 6,200
Other income 600

Income Statement:

An income statement is a primary financial statement that indicates the financial performance of a company for a given fiscal period by evaluating the net income or loss generated by business operations. Net income is derived at the bottom of the income statement and it represents the difference between sales revenue and all expenses. A company distributes dividends out of its net income and retains the portion of net income that remains undistributed.

Answer and Explanation:


The income statement for the Midlands Restaurant is prepared below:

Midlands Restaurant
Income Statement
For the quarter ended March 31, 2004
Revenues:
Sales revenue $530,400
Other income $600
Total revenues $531,000
Expenses:
Net food costs $211,700
Salaries and wages expense $174,400
Employee meals expense $17,200
Supplies expense $10,300
Glass and tableware expense $4,300
Laundry and linen expense $13,000
License expense $1,900
Printing expense $4,900
Miscellaneous expense $6,200
Total expenses $443,900
Net income $87,100

Note:

Sales from all the departments are combined together.


Learn more about this topic:

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What Is an Income Statement? - Purpose, Components & Format

from Accounting 101: Financial Accounting

Chapter 2 / Lesson 2
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