Wildhorse Travel Court was organized on July 1, 2024, 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 ende June 30, 2025. Revenues Wildhorse Travel Court Income Statement For the Quarter Ended June 30, 2025 Rent revenue Operating expenses Advertising expense Salaries and wages expense Utilities expense Depreciation expense Maintenance and repairs expense Total operating expenses Net income $3,830 84,370 14,600 945 2,925 4,330 $216,900 96,400 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. u then make inquiries and discover the following. $120,500 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, 2025. upplies $8,710 repaid Insurance 14,900 otes Payable Wildhorse rental revenues include advanced rental payments received for summer occupancy, in the amount of $57,1 There were $1,835 of supplies on hand at June 30. Prepaid insurance resulted from the payment of a 1-year policy on April 1, 2025. The mail in July 2025 brought the following bills: advertising for the week of June 24, $115; repairs made June 18, $4,8 and utilities for the month of June, $220. Wage expense is $320 per day. At June 30, 4 days' wages have been incurred but not paid. The note payable is a 6% note dated May 1, 2025, and due on July 31, 2025. Income tax of $14,325 for the quarter is due in July but has not yet been recorded.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
1.
2.
3.
4.
5.
Wildhorse Travel Court was organized on July 1, 2024, 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, 2025.
6.
Revenues
7.
Supplies
Prepaid Insurance
Notes Payable
Wildhorse Travel Court
Income Statement
For the Quarter Ended June 30, 2025
Rent revenue
Operating expenses
Advertising expense
Salaries and wages expense
Utilities expense
Depreciation expense
Maintenance and repairs expense
Total operating expenses
Net income
You then make inquiries and discover the following.
$3,830
84,370
14,900
945
14,600
2,925
4,330
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.
$216,900
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, 2025.
$8,710
96,400
$120,500
Wildhorse rental revenues include advanced rental payments received for summer occupancy, in the amount of $57,120.
There were $1,835 of supplies on hand at June 30.
Prepaid insurance resulted from the payment of a 1-year policy on April 1, 2025.
The mail in July 2025 brought the following bills: advertising for the week of June 24, $115; repairs made June 18, $4,815;
and utilities for the month of June, $220.
Wage expense is $320 per day. At June 30, 4 days' wages have been incurred but not paid.
The note payable is a 6% note dated May 1, 2025, and due on July 31, 2025.
Income tax of $14,325 for the quarter is due in July but has not yet been recorded.
Transcribed Image Text:1. 2. 3. 4. 5. Wildhorse Travel Court was organized on July 1, 2024, 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, 2025. 6. Revenues 7. Supplies Prepaid Insurance Notes Payable Wildhorse Travel Court Income Statement For the Quarter Ended June 30, 2025 Rent revenue Operating expenses Advertising expense Salaries and wages expense Utilities expense Depreciation expense Maintenance and repairs expense Total operating expenses Net income You then make inquiries and discover the following. $3,830 84,370 14,900 945 14,600 2,925 4,330 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. $216,900 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, 2025. $8,710 96,400 $120,500 Wildhorse rental revenues include advanced rental payments received for summer occupancy, in the amount of $57,120. There were $1,835 of supplies on hand at June 30. Prepaid insurance resulted from the payment of a 1-year policy on April 1, 2025. The mail in July 2025 brought the following bills: advertising for the week of June 24, $115; repairs made June 18, $4,815; and utilities for the month of June, $220. Wage expense is $320 per day. At June 30, 4 days' wages have been incurred but not paid. The note payable is a 6% note dated May 1, 2025, and due on July 31, 2025. Income tax of $14,325 for the quarter is due in July but has not yet been recorded.
No. Date Account Titles and Explanation
1.
7.
2.
8.
3.
9.
4.
5.
6.
10.
Nov.
30
Nov.
30
Nov.
30
Nov.
30
Nov.
30
Nov.
30
Nov.
30
Nov.
30
Nov.
30
Nov.
30
Debit
Credit
Transcribed Image Text:No. Date Account Titles and Explanation 1. 7. 2. 8. 3. 9. 4. 5. 6. 10. Nov. 30 Nov. 30 Nov. 30 Nov. 30 Nov. 30 Nov. 30 Nov. 30 Nov. 30 Nov. 30 Nov. 30 Debit Credit
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 2 images

Blurred answer
Knowledge Booster
Ethical Decision Making
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education