Revenues

Rent revenue

$$114,480$

Operating expenses

Advertising expense

$$2,052$

Salaries and wages expense

$43,470$

Utilities expense

$486$

Depreciation expense

$1,458$

Maintenance and repairs expense

$2,322$

Total operating expenses

$49,788$

Net income

$$64,692$

Susan suspected that something was wrong with the statement because net income had never exceeded $$28,200$ 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 tabular summary. In addition to the account balances reported above in the income statement, it contains the

following additional selected balances at June $30,2027.$

You then make inquiries and discover the following.

Sunland rental revenues include advanced rental payments received for summer occupancy, in the amount of $$30,780.$

There were $$972$ of supplies on hand at June $30.$

Prepaid insurance resulted from the payment of a $1-$year policy on April $1,2027.$

The mail in July $2027$ brought the following bills: advertising for the week of June $24,$$$62$; repairs made June $18,$ $$2,403$; and

utilities for the month of June, $$120.$

Wage expense is $$162$ per day. At June $30,4$ days' wages have been incurred but not paid.

The note payable is a $6\%$ note dated May $1,2027,$ and due on July $31,2027.$

Income tax of $$7,236$ for the quarter is due in July but has not yet been recorded.

$($a$)$

Prepare a correct income statement for the quarter ended June $30,2027.$