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
The following is additional information that has not been included in the trial balance.
On April 2, you received the telephone bill for the month of March for $670.
On March 31, Adventure Element took a university student club zip-lining. An invoice had been sent to the student club for $2,250 due April 30.
On March 31, the company held a teen’s camp for $1,570. All tickets had been prepaid two weeks in advance.
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 $16,000. A $5,400 payment on the long-term notes payable will be made during the year ended March 31, 2021.
Prepare an income statement for the year ended March 31, 2020.
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Extracted text: No. Account Debit Credit 201 Accounts payable and accrued liabilities $ 3,900 103 Accounts receivable $ 8,000 168 Accumulated depreciation, equipment 8,100 300 Becky Brenner, capital 46,200 301 Becky Brenner, withdrawals 37,800 101 Cash 11,500 194 Copyright 10,950 167 Equipment 30,800 633 Insurance expense 2,720 623 Interest expense 455 141 Notes receivable, due January 1, 2023 11,700 233 Long-term notes payable 26,500 610 Rent expense 10,000 402 Revenues 79,595 126 Supplies 710 637 Supplies expense 2,180 652 Telephone expense 2,700 203 Unearned revenues 17,100 688 Utilities expense 2,480 612 Wages expense 49,400 Totals $ 181,395 $ 181,395