Question 1 Concord Travel Court was organized on July 1, 2016, by Betty Johnson.

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Question 1 Concord Travel Court was organized on July 1, 2016, by Betty Johnson. Betty i a god er beer acnant. Fm the iastety prrd t t income statement for her fourth quarter, which ended June 30, 2017 poor accountant.From the unadjusted tabular summary, Betty prepared the followning Concord Travel Court Income Statement For the Quarter Ended June 30, 2017 Revenues Rent revenue Operating expenses $216,200 Advertising expense Salaries and wages expense Utilities expense Depreciation expense Maintenance and repairs expense 4,510 84,555 930 3,185 4,145 Total operating expenses Net income 97,325 $118,875 Betty suspected that something was wrong with the statement to review the income statement and other data. cntains the following adtsional selected balances at Jane 30, 2017 You first look at the tabular summary. In addition to the account balances reported above in the icome ststement. Supplies Prepaid Insurance $ 9,010 4.400 14,000 Notes Payable You then make inquiries and discover the following. in the amount of $57.435. 1. Concord rental revenues include advanced rental payments received for summer occupancy 2. There were $1,985 of supplies on hand at June 30 3. Prepaid insurance resulted from the payment of a 1-year policy on Apiril 1, 2017 4. The mail in July 2017 brought the following bills: advertising for the week of june 24, $130; repairs made June 18, $4,830, and ubilbies for the menth of hune, s25. 5. Wage expense is $330 per day. At June 30, 4 days' wages have been incurred but not paid. ViewSonic

Explanation / Answer

Correct Income Statement : calculation Amount $ rent revenue 216200-57435 158765 Less: Operating expenses: Advertising 4510+130 4640 salaries and wages 84555+(330*4) 85875 Utilities 930+245 1175 Depreciation 3185 Maint and repairs 4145+4830 8975 supplies 9010-1985 7025 Insurance 14400*0.25 3600 Interest 14000*6%*2/3 560 Income tax 14150 Total expenses 129185 Net income 29580

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