- Accrual Accounting Concepts Question 1 of 1 - /100 E Sheridan Travel Court was organized on July 1, 2021, by Betty Johnson, Betty is a good manager but a poor accountant. From the trial balance prepared by a part-time bookkeeper, Betty prepared the following income statement for her fourth quarter, which ended June 30,2022 SHERIDAN TRAVEL COURT Income Statement For the Quarter Ended June 30, 2022 Revenues Rent revenue $217,400 Operating expenses Advertising expense $4265 Salaries and wages expense 84,905 Utilities expense 920 Depreciation expense 3,020 Maintenance and repairs expense 4.125 Total operating expenses 97.235 Net income $120.165 Betty suspected that something was wrong with the statement because net income had never exceeded $30,000 in any one quarter, Knowing that you are an experienced accountant, she asks you to review the income statement and other data You first look at the trial balance. In addition to the account balances reported above in the income statement the trial balance contains the following additional selected balances at June 30, 2022 Supplies $8,600 Prepaid insurance 14400 Notes Payable 14,000 nt Accounting Concepts Question 1 of 1 -/100 E You then make inquiries and discover the following. 1 2 3. 4. Sheridan rentals revenues include advanced rental payments received for summer occupancy, in the amount of $57,380. There were $1.845 of supplies on hand at June 30. Prepaid insurance resulted from the payment of a one-year policy on April 1, 2022 The mail in July 2022 brought the following bills: advertising for the week of June 24, $150; repairs made June 18, 54,675; and utilities for the month of June, $255. Wages expense is $310 per day. At June 30, four days' wages have been incurred but not paid. The note payable is a 6% note dated May 1, 2022, and due on July 31, 2022. Income tax of $13,830 for the quarter is due in July but has not yet been recorded. 5. 6. 7. Prepare any adjusting journal entries required at June 30, 2022. (if no entry is required, select "No Entry" for the account titles and enter for the amounts, Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Debit Credit No. Account Titles and Explanation 1 2. 3 at - Accrual Accounting Concepts Question 1 of 1 - / 100 E 2. 3 . 4. 5. 6. 7. Question 1 of 1 - / 100 Prepare a correct income statement for the quarter ended June 30, 2022. SHERIDAN TRAVEL COURT Income Statement $ gnment - Accrual Accounting Concepts Question 1 of 1 - / 100 $ e Textbook and Media List of Accounts Save for Later Attempts: unlimited Submit