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SHERIDAN COMPANY Income Statement $ $ Sheridan Company was organized on April 1, 2026, by Carol Garcia. Carol is a good manager but a poor accountant. Carol used information from the unadjusted tabular summary to prepare the following income statement for the quarter that ended March 31 , 2027. Carol knew that something was wrong with the statement because net income had never exceeded $22,800 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 accounting records. In addition to the account balances reported in the income statement, the tabular summary contains these selected balances at March 31, 2027. Supplies $5,130 Carol knew that something was wrong with the statement because net income had never exceeded $22,800 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 accounting records. In addition to the account balances reported in the income statement, the tabular summary contains these selected balances at March 31, 2027. You then make inquiries and discover the following. 1. Rent revenue includes advanced rentals for summer-month occupancy, $23,940. 2. There were $684 of supplies on hand at March 31 . 3. Prepaid insurance resulted from the payment of a 1-year policy on January 1, 2027. 4. The mail on April 1, 2027, brought the following bills: advertising for week of March 24, $122; repairs made March 10 , $1,189; and utilities $277. 5. Wage expense totals $334 per day. At March 31, 3 days' wages have been incurred but not paid. 6. The note payable is a 3-month, 7\% note dated January 1, 2027. (a) Prepare a correct income statement for the quarter ended March 31, 2027

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