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.

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

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.)