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 $ 5,150

103 Accounts receivable $ 5,150

168 Accumulated depreciation, equipment 6,200

300 Becky Brenner, capital 44,100

301 Becky Brenner, withdrawals 39,400

101 Cash 12,150

194 Copyright 11,200

167 Equipment 23,200

633 Insurance expense 2,470

623 Interest expense 505

141 Notes receivable, due January 1, 2017 19,600

233 Long-term notes payable 26,800

610 Rent expense 11,150

402 Revenues 89,960

126 Supplies 365

637 Supplies expense 1,810

652 Telephone expense 2,250

203 Unearned revenues 12,800

688 Utilities expense 2,560

612 Wages expense 53,200

Totals $ 185,010 $ 185,010

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 $720. b. On March 31, Adventure Element took a university student club zip-lining. An invoice had been sent to the student club for $3,500 due April 30. c. On March 31, the company held a teens camp for $2,350. 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 $17,500. A $6,000 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.)