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Sunland Travel Court Ltd . was opened on July 1 , 2 0 2 3 , by Michelle Johnson. Michelle is a good manager but

Sunland Travel Court Ltd. was opened on July 1,2023, by Michelle Johnson. Michelle is a good manager but a poor accountant. From the trial balance prepared by a part-time bookkeeper, Michelle prepared the following statement of income for her fourth quarter, which ended June 30,2024
Michelle suspected that something was wrong with the statement because net income had never exceeded $20,000 in any one quarter. Knowing that you are an experienced accountant, she asks you to review the statement of income and other data.
You first look at the trial balance. In addition to the account balances reported above in the statement of income, the trial balance contains the following additional selected balances at June 30,2024.
Supplies
$7,800
Prepaid insurance
14,400
Mortgage payable
164,000
You then make inquiries and discover the following items:
Rental income includes advance rental payments received for summer occupancy in July, in the amount of $53,000.
There were $900 of supplies on hand at June 30.
Prepaid insurance resulted from the purchase of a one-year policy for $14,400 on April 1,2024.
The mail in the first week of July brought the following bills: advertising for the week of June 24,$120; repairs made June 18,$4,190; and utilities for the month of June, $220.
Salaries are $310 per day. At June 30, five days' salaries have been incurred but not paid.
Interest on the mortgage payable is $2,050 for the quarter and due July 1.
Income tax of $6,500 for the quarter is due in July. Now prepare adjusting journal entries with acoount tiltles and ecplaination with debit and credit amount..
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