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.

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 of March for $735.
b. On March 31, Adventure Element took a university student club zip-lining. An invoice had been sent to the student club for $4,850 due April 30.
c. On March 31, the company held a teen’s camp for $1,600. All tickets had been prepaid two weeks in advance.
d. The equipment has an estimated useful life of 20 years. If you need to create a new account, use account number 606.

The owner made an additional investment during the year of $13,000. A $4,200 payment on the longterm notes payable will be made during the year ended March 31, 2018.

Required:
1. Prepare an income statement for the year ended March 31, 2017.



2. Prepare a statement of changes in equity for the year ended March 31, 2017.

3. Prepare a classified balance sheet at March 31, 2017. (Be sure to list the assets and liabilities in order of their liquidity.)

No. Account Debit Credit 201   Accounts payable and accrued liabilities $ 3,050 103   Accounts receivable $ 9,750 168   Accumulated depreciation, equipment 8,900 300   Becky Brenner, capital 34,650 301   Becky Brenner, withdrawals 30,400 101   Cash 12,500 194   Copyright 8,100 167   Equipment 34,000 633   Insurance expense 1,940 623   Interest expense 300 141   Notes receivable, due January 1, 2017 18,600 233   Long-term notes payable 19,200 610   Rent expense 10,100 402   Revenues 92,650 126   Supplies 500 637   Supplies expense 2,130 652   Telephone expense 2,470 203   Unearned revenues 18,700 688   Utilities expense 2,360 612   Wages expense 44,000   Totals $ 177,150 $ 177,150

Explanation / Answer

1.

2.

3.

Trial balance

ADVENTURE ELEMENTS Income statement for the year ending March 31, 2017 Revenues 99100 Expenses: Wages expense 44000 Rent expense 10100 Depreciation expense 1700 Insurance expense 1940 Supplies expense 2130 Interest expense 300 Telephone expense 3205 Utilities expense 2360 Total expenses 65735 Net Income 33365

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