Penny's Pool Service & Supply, Inc. (PPSS) had the following transactions related to operating the business in its first year's busiest quarter ended September 30: a. Placed and paid for $2,540 in advertisements with several area newspapers (including the online versions), all of which ran in the newspapers during the quarter. b. Cleaned pools for customers for $15,200, receiving $9,900 in cash with the rest owed by customers who will pay when billed in October. c. Paid Pool Corporation, Inc., a pool supply wholesaler, $15,500 for inventory received by PPSS in May. d. As an incentive to maintain customer loyalty, PPSS offered customers a discount for prepaying next year's pool cleaning service. PPSS received $14,900 from customers who took advantage of the discount. e. Paid the office receptionist $6,400, with $1,920 owed from work in the prior quarter and the rest from work in the current quarter. Last quarter's amount was recorded as an expense and a liability, Wages Payable. f. Had the company van repaired, paying $150 to the mechanic. g. Paid $220 for phone, water, and electric utilities used during the quarter. h. Received $155 cash in interest earned during the current quarter on short-term investments. i. Received a property tax bill for $300 for use of the land and building in the quarter; the bill will be paid next quarter. j. Paid $1,200 for the next quarter's insurance coverage. 2. Based only on these quarterly transactions, prepare a classified income statement (with income from operations determined separately from other items) for the quarter ended September 30. PENNY'S POOL SERVICE & SUPPLY, INC. Income Statement (unadjusted) For the Quarter Ended September 30 Pool cleaning revenue Advertising expense Operating expenses: $ 15,200 Wage expense 4,480 Utilities expense 220 Property tax expense 300 Advertising expense 2,540 Repairs expense 150 Prepaid expenses 1,200 Additional paid-in-capital 0 Total operating expenses 8,890 Loss from operations 7,650 Other items: Pool cleaning revenue 15,200 Advertising expense Net income 8,890 $ 31,740