View Polides Current Attempt in Progress Swifty Corporation was organized on April 1, 2019. by Barbara Evans. Barbara is a good manager but a poor accountant. 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 $90,800 Operating expenses Advertising $5,400 Salaries and wages 29.500 Utilities 900 Depreciation 900 Maintenance and repairs 4,000 Total operating expenses 40,700 Net income $50,100 Barbara thought that something was wrong with the statement because net income had never exceeded $19,600 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 ledger contains the following additional selected balances at March 31, 2020. Supplies $6,400 Prepaid Insurance 7600 Notes Payable 9,720 You then make inquiries and discover the following 1 Rent revenues include advanced rentals for summer occupancy $15.400 2 There were $1,800 of supplies on hand at March 31 Prepaid insurance resulted from the payment of a one-year polley on January 1, 2020, The mall on April 1, 2020, brought the following bills: advertising for week of March 24 $110; repairs made March 10, $270, and utilities. $180 5 Salaries and wages expense total $260 per day. At March 31, 1 day salaries and wages have been incurred but not paid The note payable is a 3-month, 10% note dated January 1, 2020 3 6. Prepare a correct income statement for the quarter ended March 31, 2020 The mail on April 1, 2020, brought the following bills: advertising for week of March 24, 8110; repairs made March 1 $270, and utilities, $180 Salaries and wages expense total $260 per day. At March 31. 1 day salaries and wages have been incurred but not a The note payable is a 3-month 10% note dated January 1, 2020, 5 6 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 75400 Expenses Advertising Expense Salaries and Wages Expense Ubilities Expense Depreciation Experte Maintenance and Repairs Expense Supplies Experte Insurance Expense Interest Expense Total Expenses Net Income