Question 1 of 2 1.26/15 E Swifty Corporation was organised on April 1, 2019. by Barbara Evans, Barbara and manager but a poor countant from the trial balance prepared by a part-time bookkeeper, Barbara prepared the following income statement for the quarter that ended March 31, 2020 Swifty Corporation Income Statement For the Quarter Ended March 31, 2020 Revenues Rent revenue $90.000 Operating expenses Advertising 35.400 Salaries and wages 29.500 Utilities 900 Depreciation 900 Maintenance and repairs 4,0do Total operating expenses 40.700 Net Income $50.100 Barbara thought that something was wrong with the statement because income had never exceeded $19.000 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 real 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 56.400 7.600 9.720 You then make inquiries and discover the following 1. 2 Rent revenues include advanced rentals for summer occupancy 315400 There were 51.800 of supplies on land at Much 31 Prepaid insurance resulted from the payment of a one year policy on January 1, 2020, The mall on April 1.2020, brought the following bills advertising for week of March 24, $110. repairsmade March 10, $270; and utilities, 5100, Salaries and wages expense total $260 per day. At March 31. 1 day salaries and wages heben incurred but not paid The note payable is a 3 month 10% note dated January 1, 2020 5: Prepare a correct income statement for the quarter ended March 31, 2020 Prepare a correct income statement for the quarter ended March 31, 2020, Swifty Corporation Income Statement For the Quarter Ended March 31, 2020 Revenues Rent Revenue 25400 Expenses Advertising Expense 5510 Salaries and Wages Expense 29810 Utilities Expense 1080i Depreciation Expense 900 Maintenance and Repairs Expense 4270 i Supplies Expense 4600 Insurance Expense 1900 Interest Expense 300 Total Expenses 48370 Net Income /(Loss) 27030 e Textbook and Media List of Accounts