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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

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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 $1835 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 18,54,815; 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. Credit Prepare any adjusting journal entries required at June 30, 2017. (If no entry is required, select "No Entry for the account titles and for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Rent Revenue Unearned Rent Revenue 2 Supplies Expense 1. 57120 57120 Supplies 3. Insurance Expense Prepaid Insurance 4. Advertising Expense Maintenance and Repairs Expense Utilities Expense Accounts Payable 5. Salaries and Wages Expense Salaries and Wages Payable 6. Interest Expense Interest Payable 7. Income Tax Expense Income Taxes Payable ROADSIDE TRAVEL COURT Income Statement For the Quarter Ended June 30, 2017 : Revenues Rent Revenue Expenses Advertising Expense Salaries and Wages Expense Utilities Expense Depreciation Expense

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