Problem 4 6A Roadside Travel Court was organized on July 1, 2016, by Betty Johnson Betty is a good manager but a poor accountant From the trial balance prepared by a part time bookkeeper, Betty prepared the following income statement for her fourth quarter, which ended June 30, 2017 ROADSIDE TRAVEL COURT Income Statement For the Quarter Ended June 30, 2017 Revenues Rent revenue $216,900 Operating expenses Advertising expense $ 3,830 Salaries and wages expense 84,370 Utilities expense 945 Depreciation expense 2,925 Maintenance and repairs expense 4,330 Total operating expenses 96,400 Net income $120,500 Betty suspected that something was wrong with the statement because net income had never exceeded $30,000 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 trial balance contains the following additional selected balances at June 30, 2017 Supplies $ 8,710 Prepaid Insurance 14,400 Notes Payable 14,000 You then make inquiries and discover the following 1 Roadside rentals revenues include advanced rental payments received for summer occupancy, in the amount of $57,120 2 There were $1,835 of supplies on hand at June 30 3 Prepaid insurance resulted from the payment of a one year policy on April 1, 2017 4 The mail in July 2017 brought the following bills advertising for the week of June 24, $115 repairs made June 18, $4,815 and utilities for the month of June, $220 5 Wages expense is $320 per day At June 30, four days wages have been incurred but not paid 6 The note payable is a 6 note dated May 1, 2017, and due on July 31, 2017 7 Income tax of $14,325 for the quarter is due in July but has not yet been recorded Prepare any adjusting journal entries required at June 30, 2017 (If no entry is required, select No Entry for the account titles and enter 0 for the amounts Credit account titles are automatically indented when the amount is entered Do not indent manually ) Prepare a correct income statement for the quarter ended June 30, 2017

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Problem 4-6A Roadside Travel Court was organized on July 1, 2016, by Betty Johnson. Betty is a good manager but a poor accountant. From the

Problem 4-6A

Roadside Travel Court was organized on July 1, 2016, by Betty Johnson. Betty is a good manager but a poor accountant. From the trial balance prepared by a part-time bookkeeper, Betty prepared the following income statement for her fourth quarter, which ended June 30, 2017.

ROADSIDE TRAVEL COURT Income Statement For the Quarter Ended June 30, 2017
Revenues
Rent revenue		$216,900
Operating expenses
Advertising expense	$ 3,830
Salaries and wages expense	84,370
Utilities expense	945
Depreciation expense	2,925
Maintenance and repairs expense	4,330
Total operating expenses		96,400
Net income		$120,500

Betty suspected that something was wrong with the statement because net income had never exceeded $30,000 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 trial balance contains the following additional selected balances at June 30, 2017.

Supplies		$ 8,710
Prepaid Insurance		14,400
Notes Payable		14,000

You then make inquiries and discover the following.

1.		Roadside rentals revenues include advanced rental payments received for summer occupancy, in the amount of $57,120.
2.		There were $1,835 of supplies on hand at June 30.
3.		Prepaid insurance resulted from the payment of a one-year policy on April 1, 2017.
4.		The mail in July 2017 brought the following bills: advertising for the week of June 24, $115; repairs made June 18, $4,815; and utilities for the month of June, $220.
5.		Wages expense is $320 per day. At June 30, four days wages have been incurred but not paid.
6.		The note payable is a 6% note dated May 1, 2017, and due on July 31, 2017.
7.		Income tax of $14,325 for the quarter is due in July but has not yet been recorded.

Prepare any adjusting journal entries required at June 30, 2017. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)