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, 2020. No. 201 103 168 300 301 101 194 167 633 623 141 233 610 402 126 637 652 203 688 612 Account Accounts payable and accrued liabilities Accounts receivable Accumulated depreciation, equipment Becky Brenner, capital Becky Brenner, withdrawals Cash Copyright Equipment Insurance expense Interest expense Notes receivable, due January 1, 2023 Long-term notes payable Rent expense Revenues Supplies Supplies expense Telephone expense Unearned revenues Utilities expense Wages expense Totals Debit Credit $ 4,250 $ 5,950 10,350 37,500 30,600 11,000 6,750 39,800 1,880 380 15,900 19,500 11,050 84,625 435 2,690 2,550 20,200 3,040 44,400 $176,425 $176,425 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 $340. b. On March 31, Adventure Element took a university student club zip-lining. An invoice had been sent to the student club for $2,750 due April 30. c. On March 31, the company held a teen's camp for $2,250. All tickets had been prepaid two weeks in advance. d. The equipment has an estimated useful life of 20 years with no residual value at the end of its useful life. If you need to create a new account, use account number 606. Use straight line method for depreciating Equipment. The owner made an additional investment during the year of $11,000. A $3,400 payment on the long-term notes payable will be made

Answer 1

X fic revenues с $ 89,625 ADVENTURE ELEMENTS Income Statement For Year Ended March 31, 2020 revenues operating expenses: insurance expense $ 1,880 interest expense $ 380 rent expense $ 11,050 supplies expense $ 2,690 telephone expense $ 2,890 utilities expense $ 3,040 wages expense $ 44,400 depreciation expense $ 1,990 total operating expenses net income $ 68,320 $ 21,305 ADVENTURE ELEMENTS Balance Sheet March 31, 2020 assets current assets cash $ 11,000 accounts receivable $ 8,700 supplies $ 435 total current assets $ 20,135 long term investments: notes receivable $ 15,900 property, plant and equipment: equipment $ 39,800 less: accumulated depreciation, equipment $ (12,340) $ 27,460 intangible assets: copyright $ 6,750 total assets $ 70,245 liabilities current liabilities: accounts payable and accrued liabilities $ 4,250 unearned revenues $ 17,950 telephone expense payable $ 340 long term notes payable $ 3,400 total current liabilities $ 25,940 long term liabilities: long term notes payable $ 16,100 total liabilities $ 42,040 equity Becky Brenner, capital $ 28,205 total liabilities and equity $ 70,245 ADVENTURE ELEMENTS Statement of Changes in Equity For Year Ended March 31, 2020 Becky Brenner, capital, April 1 $ 26,500 add: capital introduced $ 11,000 add: net income $ 21,305 total $ 58,805 less: Becky Brenner, withdrawls $ (30,600)| Becky Brenner, capital, March 31 $ 28,205

For formulas and calculations, refer to the image below -

ADVENTURE ELEMENTS Balance Sheet March 31, 2020 assets current assets cash 11000 ADVENTURE ELEMENTS Income Statement For Year Ended March 31, 2020 revenues =84625+2750+2250 operating expenses: insurance expense 1880 interest expense 380 rent expense 11050 supplies expense 2690 telephone expense =2550+340 utilities expense 3040 wages expense 44400 depreciation expense =(39800/20) total operating expenses =SUM(C7:C14) net income =D5-D15 ADVENTURE ELEMENTS Statement of Changes in Equity For Year Ended March 31, 2020 Becky Brenner, capital, April 1 =37500-11000 add: capital introduced 11000 add: net income =D16 total =D22+C23+C24 less: Becky Brenner, withdrawls |-30600 Becky Brenner, capital, March 31 =D25+C26 accounts receivable =5950+2750 supplies 435 total current assets =SUM(G7:49) long term investments: notes receivable 15900 property, plant and equipment: equipment 39800 less: accumulated depreciation, equipment --10350+(39800/20)) =G14+G15 intangible assets: copyright 6750 total assets =H10+H12 +H15+H17 liabilities current liabilities: accounts payable and accrued liabilities =4250 unearned revenues =20200-2250 telephone expense payable long term notes payable 3400 total current liabilities =SUM(G21:G24) long term liabilities: long term notes payable =19500-3400 total liabilities =H25+H27 equity Becky Brenner, capital =D27 total liabilities and equity =H28+H30 340

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