Blue Travel Court was organized on July 1, 2021, by Patricia Johnson. Patricia is a good manager but a poor accountant. From the unadjusted tabular summary, Patricia prepared the following income statement for her fourth quarter, which ended June 30, 2022. Blue Travel Court Income Statement For the Quarter Ended June 30, 2022 Revenues Rent revenue $89,040 Operating expenses Advertising expense $1,596 Salaries and wages expense 33,810 Utilities expense 378 Depreciation expense 1,134 Maintenance and repairs expense 1,806 Total operating expenses Net income 38,724 $50,316 Patricia suspected that something was wrong with the statement because net income had never exceeded $24,600 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 tabular summary. In addition to the account balances reported above in the income statement, it contains the following additional selected balances at June 30, 2022. Supplies $3,444 Prepaid Insurance 6,048 Notes Payable 5,900 You then make inquiries and discover the following. 1. 2. Blue rental revenues include advanced rental payments received for summer occupancy, in the amount of $23,940. There were $756 of supplies on hand at June 30. 3. Prepaid insurance resulted from the payment of a 1-year policy on April 1, 2022. 4. The mail in July 2022 brought the following bills: advertising for the week of June 24, $50; repairs made June 18, $1,869; and utilities for the month of June, $96. 5. Wage expense is $126 per day. At June 30, 4 days' wages have been incurred but not paid. 6. The note payable is a 6% note dated May 1, 2022, and due on July 31, 2022. 7. Income tax of $5,628 for the quarter is due in July but has not yet been recorded.