Based on the adjusted trial balance prepared in Problem 4-8A, prepare an income statement and a statement of changes in equity for the year ended March 31, 2020, and a classified balance sheet at March 31, 2020. The owner made an additional investment during the year of $12,000. A $3,800 payment on the long-term notes payable will be made during the year ended March 31, 2021.

Analysis Component: Why might Adventure Elements be tempted to report the notes receivable as a current asset on the March 31, 2020, balance sheet?

Problem 4-8A

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.

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No. Account Debit Credit $ 15,300 101 Cash Current investments. 104 20,300 126 Supplies. 6,900 149 Notes receivable. 38,500 Equipment. Accumulated depreciation, equipment. 167 71,000 $ 34,500 168 173 Building. 253,000 Accumulated depreciation, building. 174 137,500 Land. 183 82,500 193 Franchise. 27,500 Accounts payable. 201 16,300 Interest payable. 203 120 233 Unearned professional revenue. 26,300 251 Long-term notes payable. 125,000 Amar Lloyd, capital. 85,640 301 302 Amar Lloyd, withdrawals. 2,300 Professional revenue. 199,480 401 406 Rent revenue.. Depreciation expense, building. Depreciation expense, equipment. Wages expense.. 22,500 606 19,300 7,300 612 63,300 623 540 633 Interest expense 17,300 637 Insurance expense Supplies expense Telephone expense. 652 12,100 688 3,700 Utilities expense. 690 6,500 $647,340 $647,340 Totals