View Policies Current Attempt in Progress Sarasota Travel Court was organized on July 1, 2021, by Helen Martin. Helen is a good manager but a poor accountant. From th unadjusted tabular summary, Helen prepared the following income statement for her fourth quarter, which ended June 30, 202 $144,160 Sarasota Travel Court Income Statement For the Quarter Ended June 30, 2022 Revenues Rent revenue Operating expenses Advertising expense $ 2,584 Salaries and wages expense 54.740 Utilities expense 612 Depreciation expense 1,836 Maintenance and repairs expense 2,924 Total operating expenses Net Income 62,696 $81,464 Helen suspected that something was wrong with the statement because net income had never exceeded $32,400 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, 2022 Supplies Prepaid Insurance $5,576 9,792 Helen suspected that something was wrong with the statement because net income had never exceeded $32,400 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, 2022, Supplies Prepaid Insurance Notes Payable $ 5,576 9,792 9,800 3. You then make inquiries and discover the following. 1. Sarasota rental revenues include advanced rental payments received for summer occupancy in the amount of $38,760. There were $1,224 of supplies on hand at June 30. Prepaid Insurance resulted from the payment of a 1-year policy on April 1, 2022. The mail in July 2022 brought the following bills: advertising for the week of June 24,576repairs made June 18,53,026 and utilities for the month of June. $148. 5. Wage expense is $204 per day. At June 30, 4 days' wages have been incurred but not paid The note payable is a 6% note dated May 1, 2022, and due on July 31, 2022 Income tax of $9,112 for the quarter is due in July but has not yet been recorded 4. 6 7 Prepare a correct income statement for the quarter onded June 30, 2022 Sarasota Travel Court Income Statement Sarasota Travel Court Income Statement For the Quarter Ended June 30, 2022 Revenues Rent Revenue 144, 160 Expenses 2.584 Advertising Expense Salaries and Wages Expense 54,740 Utilities Expense 612
