Greenstream Insurance Agency prepares monthly financial statements. Presented below is an income statement for the month of

June that is correct on the basis of information considered.

GREENSTREAM INSURANCE AGENCY

Income Statement

For the Month Ended June $30$

Revenues

Service Revenue

$$40,000$

Expenses

Salaries and Wages Expense $$12,000$

Advertising Expense $800$

Rent Expense

$4,200$

Depreciation Expense

$2,800$

Total Expenses

Additional Data: When the income statement was prepared, the company accountant neglected to take into consideration the

following information:

A utility bill for $$1,200$ was received on the last day of the month for electric and gas service for the month of June.

A company insurance salesman sold a life insurance policy to a client for a premium of $$10,000.$ The agency billed the client

for the policy and is entitled to a commission of $20\%.$

Supplies on hand at the beginning of the month were $$2,500.$ The agency purchased additional supplies during the month for

$$1,500$ in cash and $$1,200$ of supplies were on hand on June $30.$

The agency purchased a new car at the beginning of the month for $$24,000$ cash. The car will depreciate $$6,000$ per year.

Salaries owed to employees at the end of the month total $$5,300.$ The salaries will be paid on July $5.$

Prepare a corrected income statement.