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Crane Travel Court was organized on July 1, 2021, by Betty Johnson Betty is a good manager but a poor accountant. From the trial alance

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Crane Travel Court was organized on July 1, 2021, by Betty Johnson Betty is a good manager but a poor accountant. From the trial alance prepared by a part-time bookkeeper Betty prepared the following income statement for her fourth quarter, which ended une 30, 2022 CRANE TRAVEL COURT Income Statement For the Quarter Ended June 30, 2022 Revenues Rent revenue $211.600 Operating expenses $3,940 82,725 950 Advertising expense Salaries and wages expense Utilities expense Depreciation expense Maintenance and repairs expense Total operating expenses 2,825 4,445 94,885 Net income $116,715 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 $8,845 Prepaid Insurance 14.400 Notes Payable 14,000 You then make inquiries and discover the following 1 2. 3 4. Crane rentals revenues include advanced rental payments received for summer occupancy, in the amount of $57,870. There were $1,840 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, $140; repairs made June 18, 54,860; and utilities for the month of June $225. Wages expense is $305 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 $14,095 for the quarter is due in July but has not yet been recorded 5. 6. N 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) No. Account Titles and Explanation Debit Credit 1 2. 3. 4 5. 6 7

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