ACCT 2010 - CH.

4 Case
INSTRUCTIONS

1- Read the transactions tab.

2- Record each transaction and adjustment on the journal tab.
3- Enter the corresponding Debit's and Credit's to the T-Accounts, on the T-Accounts tab.
4- Create the adjusted trial balance.
5- Prepare the Income Statement. (only enter data in the shaded gray cells)
6- Prepare the Statement of Retained Earnings. (only enter data in the shaded gray cells)
7- Prepare the Balance Sheet. (only enter data in the shaded gray cells)
8- Save the completed file. Submit through Canvas by the date specified in the course schedule.
ACCT 2010
TRANSACTIONS

3/1/202X Pay $3,000 for a 3 month advertising/marketing campaign.

3/1/202X Pay $3,000 for a 12 month liability insurance policy.

3/1/202X Purchase $1,000 of office supplies from Costco.

3/1/202X Fitness Ridge signs and pays a $15,000 contract with RIDE ON. The contract states that RIDE ON will provide
tours to Fitness Ridge guests for 3 months.

3/2/202X Receive $225 invoice from Bicycles Unlimited for repairs to some of the company bikes.

3/5/202X RIDE ON takes Red Mountain Resort guests on a mountain bike tour.

3/10/202X RIDE ON receives $250 from mountain bike rentals.

3/15/202X RIDE ON takes Fitness Ridge guests on a mountain bike tour.

3/18/202X Pay the $100 internet bill received 2/29/2021.

3/19/202X Pay the $400 utility bill received 2/29/2021.

3/25/202X RIDE ON pays the invoice from Bicycles Unlimited.

3/31/202X RIDE ON receives $100 March internet bill.

3/31/202X RIDE ON receives a $475 March utility bill.

3/31/202X RIDE ON receives and pays $150 March phone bill.

3/31/202X Pleased with this months operations, $10,000 is distributed to company owners.

ADJUSTMENTS
AJE 1 Adjust prepaid marketing to match economic reality at the end of March.

AJE 2 Adjust liability insurance to match economic reality at the end of March.

AJE 3 $700 of office supplies remain at the end of March.

AJE 4 Adjust the prepaid rent for the month of March.

*Recall that A 6 month lease was signed on 2/1/2021 and $6,000 was paid in advance.

AJE 5 Recognize the March revenue from Red Mountain Resort (Previous Chapter Case).
 *Recall that there are two remaining performance obligations valued at a total of $20,000.

AJE 6 Recognize the March revenue from Fitness Ridge.

AJE 7 - 9 Begin recording monthy depreciation for the van, trailer, and mountain bikes purchased in the Ch. 2 case.
*The van was purchased for $25,000. It has a $5,500 salvage value and a useful life of 5 years.
*The trailer was purchased for $10,000. It has a $4,000 salvage value and a useful life of 5 years.
*The mountain bikes were purchased for $30,000. They will have a salvage value of $15,600 and a useful li
 states that RIDE ON will provide mountain bike

mpany bikes.

in advance.
otal of $20,000.

es purchased in the Ch. 2 case.

seful life of 5 years.
a useful life of 5 years.
e value of $15,600 and a useful life of 3 years.
 RIDE ON
General Journal
MARCH 1 - 31, 202X
DATE ACCOUNT DEBIT CREDIT
3/1/202X

3/1/202X

3/1/202X

3/1/202X

3/2/202X

3/10/202X

3/18/202X

3/19/202X

3/25/202X

3/31/202X

3/31/202X

3/31/202X

3/31/202X

ADJUSTMENTS:
AJE 1

AJE 2

AJE 3

AJE 4

AJE 5

AJE 6

AJE 7

AJE 8

AJE 9
 RIDE ON
T-ACCOUNTS
OWNER'S EQUITY
ASSETS = LIABILITIES +
INVESTMENT - DISTRIBUTIONS + REVENUE - EXPENSES
DR CR DR CR DR CR DR CR DR CR DR CR
+ - - + - + + - - + + -

CASH UNEARNED REVENUE COMMON STOCK NONDIVIDEND DISTRIBUTION TOUR REVENUE REPAIRS / MAINT.
54,750 20,000 100,000
100,000 - -
20,000 -
RETAINED EARNINGS INTERNET
ACCOUNTS PAYABLE 4,250 RENTAL REVENUE
500 4,250 -
-
UTILITIES
54,750
500 -
PREPAID MARKETEING
PHONE
-
-
PREPAID LIABILITY INSURANCE
MARKETING
-
-
OFFICE SUPPLIES
LIABILITY INSURANCE
-
-
PREPAID RENT
5,000 OFFICE SUPPLIES
5,000
-
VAN
25,000 RENT
25,000
-
TRAILER
10,000 DEPRECIATION
10,000

MOUNTAIN BIKES
30,000 -
30,000

ACCUMULATED DEPRECIATION

-
 RIDE ON
ADJUSTED TRIAL BALANCE
MARCH 1 - 31, 202X
Adjusted Trial Balance
ACCOUNT DEBIT CREDIT
CASH
PREPAID MARKETING
PREPAID LIABILITY INSURANCE
OFFICE SUPPLIES
PREPAID RENT
VAN
TRAILER
MOUNTAIN BIKES
ACCUMULATED DEPRECIATION
UNEARNED REVENUE
ACCOUNTS PAYABLE
COMMON STOCK
RETAINED EARNINGS
NONDIVIDEND DISTRIBUTION
TOUR REVENUE
RENTAL REVENUE
REPAIRS & MAINTENANCE
INTERNET
UTILITIES
PHONE
MARKETING
LIABILITY INSURANCE
OFFICE SUPPLIES
RENT
DEPRECIATION
- -

-
 RIDE ON
INCOME STATEMENT
MARCH 1 - 31, 202X

REVENUE:
TOUR REVENUE
RENTAL REVENUE
TOTAL REVENUE -

OPERATING EXPENSES:
REPAIRS & MAINTENANCE
INTERNET
UTILITIES
PHONE
MARKETING
LIABILITY INSURANCE
OFFICE SUPPLIES
RENT
DEPRECIATION
TOTAL EXPENSES -

NET INCOME / (LOSS) -

 RIDE ON
STATEMENT OF RETAINED EARNINGS
AS OF MARCH 31, 202X

BEGINNING RETAINED EARNINGS:

INCREASES:
ADDITIONAL CAPITAL CONT. -
NET INCOME
TOTAL INCREASES -
DECREASES:
NONDIVIDEND DISTRIBUTION
NET LOSS -
TOTAL DECREASES -

TOTAL CHANGE IN RETAINED EARNINGS -

ENDING RETAINED EARNINGS -

 RIDE ON
BALANCE SHEET
AS OF MARCH 31, 202X
-
CURRENT ASSETS:
CASH
PREPAID MARKETING
PREPAID LIABILITY INSURANCE
OFFICE SUPPLIES
PREPAID RENT
TOTAL CURRENT ASSETS -

NON-CURRENT ASSETS:
VAN
TRAILER
MOUNTAIN BIKES
ACCUMULATED DEPRECIATION
TOTAL NON-CURRENT ASSETS -

TOTAL ASSETS -

LIABILITIES & EQUITY

CURRENT LIABILITIES:
UNEARNED REVENUE
ACCOUNTS PAYABLE
TOTAL CURRENT LIABILITIES -

TOTAL LIABILITIES -

EQUITY:
COMMON STOCK
RETAINED EARNINGS
TOTAL EQUITY -

TOTAL LIABILITIES & EQUITY -