Part 1. Happy Trails Park was organized on April 1, 2019, by Alicia Hency. Alicia is a good manager but a poor accountant. From the trial balance prepared by a part-time bookkeeper. Alicia prepared the following income statement for the quarter that ended March 31, 2020. Harpy Trails Park Income Statement For the Quarter Ended March 31, 2020 Revenues Rent revenue 88,000 Operating expenses Advertising 5,200 Salaries and wages 28,800 Utilities 750 Depreciation 800 Maintenance and repairs 4,000 Total operating expenses 39,550 Net income 48,450 Alicia thought that something was wrong with the statement because net income had never exceeded 20,000 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 ledger contains the following additional selected balances at March 31, 2020. Supplies Prepaid Insurance Notes Payable 6,200 7,500 12,000 You then make inquiries and discover the following, 1. Rent revenue includes advanced rentals for summer occupancy 14,000. 2. There were 1,450 of supplies on hand at March 31. 3. Prepaid insurance resulted from the payment of a 1-year policy on January 1. 2020. 4. The mail on April 1, 2020, brought the following bills: advertising for week of March 24, 13 repairs made March 10, 260; and utilities, 120. 5. There are four employees, who receive wages totaling 300 per day. At March 31, 2 days' salar and wages have been incurred but not paid. 6. The note payable is a 3-month, 10% note dated January 1, 2020. Required: 1.1. Prepare a correct income statement for the quarter ended March 31, 2020. 1.2. Explain to Alicia the IFRSS that she did not recognize in preparing her income statement and effect on her financial results