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 $535.
b. On March 31, Adventure Element took a university student club zip-lining. An invoice had been sent to the student club for $4,100 due April 30.
c. On March 31, the company held a teen’s camp for $1,540. All tickets had been prepaid two weeks in advance.
d. The equipment has an estimated useful life of 20 years.

Required:
1. Prepare the missing adjusting entries for transactions a–d. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)



2. Prepare an adjusted trial balance.



3. Based on your adjusted trial balance, prepare the closing entries. Journalize the closing entries. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

No. Account Debit Credit   201 Accounts payable and accrued liabilities    $ 3,300   103 Accounts receivable $ 9,150   168 Accumulated depreciation, equipment        7,150   300 Becky Brenner, capital 37,050   301 Becky Brenner, withdrawals 32,500     101 Cash 9,750      194 Copyright 7,100   167 Equipment 27,000      633 Insurance expense   2,780   623 Interest expense 560   141 Notes receivable, due January 1, 2017 12,400      233 Long-term notes payable 26,100   610 Rent expense 10,950      402 Revenues 68,435   126 Supplies 685      637 Supplies expense 2,710   652 Telephone expense 2,450      203 Unearned revenues 16,300   688 Utilities expense 2,700   612 Wages expense 37,600 Totals $ 158,335 $ 158,335

Explanation / Answer

1) Date Account Head & Description Debit Amount Credit Amount a March 31 Telephone expense 535 Telephone expense payable 535 (to record the telephone expenses for march) b March 31 Accounts receivable 4100 Revenue 4100 (to record the revenue related to March) c March 31 Unearned revenue 1540 Revenue 1540 (to record the revenue related to March) d March 31 Depreciation expense (27000/20) 1350 Accumulated Depreciation - Equipment 1350 (to record the depreciation expense) 2) No. Account Debit Credit   201 Accounts payable and accrued liabilities               3,300.00   103 Accounts receivable (9150+4100)           13,250.00   168 Accumulated depreciation, equipment (7150+1350)                    8,500.00   300 Becky Brenner, capital            37,050.00   301 Becky Brenner, withdrawals           32,500.00   101 Cash             9,750.00        194 Copyright             7,100.00   167 Equipment           27,000.00        633 Insurance expense             2,780.00   623 Interest expense                 560.00   141 Notes receivable, due January 1, 2017           12,400.00        233 Long-term notes payable            26,100.00   610 Rent expense           10,950.00        402 Revenues (68435+4100+1540)            74,075.00   126 Supplies                 685.00        637 Supplies expense             2,710.00   652 Telephone expense (2450+535)             2,985.00      Telephone expense payable                  535.00   203 Unearned revenues (16300-1540)            14,760.00   688 Utilities expense             2,700.00   612 Wages expense           37,600.00 Depreciation expenses 1350 Totals       1,64,320.00         1,64,320.00 3) Date Account Head & Description Debit Amount Credit Amount March 31 Income Summary 61635 Telephone expense 2985 Depreciation expense 1350 Insurance expense 2780 Interest expense 560 Rent expense 10950 Supplies expense 2710 Utilities expense 2700 Wages expense 37600 (to record the transfer of expenses to income summary) March 31 Revenues 74075 Income Summary 74075 (to record the transfer of revenues to income summary)

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.