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Question 1 - Income Statement (42 points) Janus 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. JANUS INSURANCE AGENCY Income Statement For the Month Ended June 30 35,000 Revenues Service Revenue. Expenses Salaries expense Rent expense Depreciation expense. Advertising expense. Total expenses Net income 6,000 4,200 2,800 800 13.800 21.200 Additional Data: When the income statement was prepared, the company accountant neglected to take into consideration the following information: 1. A utility bill for 2,000 was received on the last day of the month for electric and gas service for the month of June. 2. A company insurance salesman sold a life insurance policy to a client for a premium of 20,000. The agency billed the client for the policy and is entitled to a commission of 20%. 3. Supplies on hand at the beginning of the month were 4,000. The agency purchased additional supplies during the month for 3,500 in cash and 1,200 of supplies were on hand at June 30 4. The agency purchased a new car at the beginning of the month for 24,000 cash. The car will depreciate 6,000 per year. 5. Salaries owed to employees at the end of the month total 5,300. The salaries will be paid on July 5. Required: Fill in the missing numbers in the income statement provided on the next page. 2