Carla Vista Co. was organized on April 1, 2016, by Trudy Crawford. Trudy is a good manager but a poor accountant. From the trial balance prepared by a part-time bookkeeper, Trudy prepared the following income statement for the quarter that ended March 31, 2017.

Carla Vista Co. Income Statement For the Quarter Ended March 31, 2017
Revenues
	Rent revenue				$83,000
Operating expenses
	Advertising expense		$4,200
	Salaries and wages expense		26,500
	Utilities expense		1,300
	Depreciation expense		840
	Maintenance and repairs expense		2,800
	Total operating expenses				35,640
Net income					$47,360

Trudy knew that something was wrong with the statement because net income had never exceeded $22,000 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 in the income statement, the ledger contains these selected balances at March 31, 2017.

Supplies		$4,500
Prepaid Insurance		7,000
Notes Payable		22,500

You then make inquiries and discover the following.

1.		Rent revenue includes advanced rentals for summer-month occupancy, $20,500.
2.		There were $540 of supplies on hand at March 31.
3.		Prepaid insurance resulted from the payment of a 1-year policy on January 1, 2017.
4.		The mail on April 1, 2017, brought the following bills: advertising for week of March 24, $100; repairs made March 10, $1,090; and utilities $300.
5.		Wage expense totals $260 per day. At March 31, 3 days wages have been incurred but not paid.
6.		The note payable is a 3-month, 6% note dated January 1, 2017.

Prepare a correct income statement for the quarter ended March 31, 2017.