Adventure Elements provides outdoor activities including ropes courses, rock cli

Question

Adventure Elements provides outdoor activities including ropes courses, rock climbing, and zip-lining. The company offers a unique experience for team building activities, camps for youth and anyone seeking outdoor adventure The following is trial balance for the year ended March 31, 2017 Debit 201 Accounts payable and accrued liabilities 103 Accounts receivable 168 Accumulated depreciation, equipment 300 Becky Brenner, capital 301 Becky Brenner, withdrawals 101 Cash 194 Copyright 167 Equipment 633 Insurance expense 623 Interest expense 141 Notes receivable, due January 1, 2017 233 Long-term notes payable 610 Rent expense 402 Revenues 126 Supplies 637 Supplies expense 652 Telephone expense 203 Unearned revenues 688 Utilities expense 612 Wages expense S 3,150 S 7,550 8,650 41,550 35,800 11,600 10,500 33,000 2,320 15,700 27,000 12,150 81,475 2,540 2,950 12,300 2,850 36,400 Totals S 174,125 S 174,125 The following is additional information that has not been included in the trial balance a. On April 2, you received the telephone bill for the month or March for S580 b. On March 31, Adventure Element took a university student club zip-lining. An invoice had been sent to the student club for $3,200 due April 30 c. On March 31, the company held a teen's camp for $2,480. All tickets had been prepaid two weeks in advance d. The equipment has an estimated useful life of 20 years. IT you need to create a new account, use account number 606.

Explanation / Answer

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ADVENTURE ELEMENTS Income Statement For Year Ended March 31, 2017 Revenues ($81475 + $3200 + $2480) 87155 Operating expenses: Depreciation expense ($33000/20) 1650 Rent expense 12150 Wages expense 36400 Insurance expense 2320 Supplies expense 2540 Telephone expense ($2950 + $580) 3530 Utilities expense 2850 Interest expense 440 Total operating expense 61880 Net income 25275

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