Ivanhoe Company was organized on April $1,2026,$ by Helen Martin. Helen is a good manager but a poor accountant. Helen used

information from the unadjusted tabular summary to prepare the following income statement for the quarter that ended March $31,$

Ivanhoe Company

Income Statement

For the Quarter Ended March $31,2027$

Revenues

Rent revenue

$$89,640$

Operating expenses

Helen knew that something was wrong with the statement because net income had never exceeded $$21,600$ 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 accounting records. In addition to the account balances reported in the income statement, the tabular summary

contains these selected balances at March $31,2027.$

Supplies $$4,860$

Prepaid Insurance $,7,776$

Notes Payable $,21,600$

You then make inquiries and discover the following.

Rent revenue includes advanced rentals for summer$-$month occupancy, $$22,680.$

There were $$648$ of supplies on hand at March $31.$

Prepaid insurance resulted from the payment of a $1-$year policy on January $1,2027.$

The mail on April $1,2027,$ brought the following bills: advertising for week of March $24,$$$116$; repairs made March $10,$

$$1,126$; and utilities $$262.$

Wage expense totals $$316$ per day. At March $31,3$ days' wages have been incurred but not paid.

The note payable is a $3-$month, $7\%$ note dated January $1,2027.$

$($a$)$

Prepare a correct income statement for the quarter ended March $31,2027.$