Q.1 Details King Garage prepares monthly financial statements. Presented below is an income statement for the month of June that is correct on the basis of information considered DETAILS KING GARAGE Income Statement For the Month Ended June 30 Revenues Sales revenue $36,000 Expenses Salaries and wages expense $6,500 Rent expense 4,200 Depreciation expense 2,800 Advertising expense 900 Total expenses 14.400 Net income $21.600 Additional Data: When the income statement was prepared, the company accountant neglected to take into consideration the following information: 1. A utility bill for $2,800 was received on the last day of the month for electric and gas service for the month of June. 2. A company King salesman sold a life King policy to a client for a premium of $24,000. The Garage billed the client for the policy and is entitled to a commission of 25% 3. Supplies on hand at the beginning of the month were $3,000. The Garage purchased additional supplies during the month for $4,000 in cash and $2,600 of supplies were on hand at June 30. 4. The Garage purchased a new car at the beginning of the month for $31,000 cash. The car will depreciate $9,000 per year. 5. Salaries owed to employees at the end of the month total $6,100. The salaries will be paid on July 5. Instructions Prepare a correct income statement