Case 12: Ricky Rock Wresting for Fun Richard Brandt graduated from York University with his BAS although he spent more time in the gym than in the classrooms and Ibraries. His parents and grandparents were very proud and happy of this achievement. As a graduation gif, Richard's Grandparents gave him $20,000 to start his own business. So, on September 1, 2015, Richard started a small business called "Ricky Rock Wresting for Fun "Ricky Rock offers a party package designed for active kids, teen and adults that want to learn and practice wresting activities for fun by learning how to perform headlocks, legscusors and other tricks As a student, he learned and practiced Greco-Roman wresting and built an impressive body. Now graduated from university he has decided to continue with his passion of wresting but added a spin to make money. In one tournament in 2013 Richard meet Linda who was competing for a US university team and she mentioned that she was working on girls birthday parties focused on wrestling. In June 2015 Richard contacted Linda and told her about his idea and Linda shared with him all documentation she has prepared in these years including brochure to be distributed to potential customers, personal cards. party themes, parties activities, schedules and agendas, etc. During August Richard has completed his business plan and was ready to launch Ricky Rock Wresting for Fun in the GTA. The following is a list of transactions that occurred during the first month of operations September I opened a business bank account with the $20,000 received as a gift from the Grandparents $20,000 September 14 signed 12 month commercial insurance contract for any rabaty that might emerge from the actory, 5600 per month for 1 year September and Purchase in cash costumes of famous wrestlees to wear at partes. The costumes can last one full you $600 September 3d Paid in cash the set up at the web site. It expects to last the whole life of this business $2.000 September 4th Collected the brochures and presentation cards to be used in promoting the business. One third is paid in cash while the rest wit be paid on October 5th $450, September sh First event organited and delivered Birthday party for a 5 years old boy. Received the payment in cash $1000. September elsecond evert organized and delvered as part of a series of activities organized by a charity to raise funds. One third is paid in cath while the rest wit be paid by the Charity Organic on October 5th $3.000 September el Labour day, no events, no work to Richard goes to the gym and does a double routine the rest of the days he just does a simple routine of 2.5 hours September 11 Thed event organized and delivered Birthday party for a 7 years old boy Parenta promise to pay in a few days St000 September 15th Pays first 2 months of insurance $1.200. September 19th & 20th Fourth event organized and delivered. Prouded one of the actitles of a corporate team building extravaganza weekend. The contract signed says the payment will be effective in 30 days with a cheque $2,000 September 23rd Pald the gym membership for September October, November and December $2.000 September 24th Telephone bill for $200 was received for the month of September, payment due October 5th $200 September 25th Fith event organized and delivered. Wirthday party for a 4 years old boy. Received payment in cash $1000. September 26th one of the parents at the birthday party for a 4 years old boy hires him for his son's birthday party on October 10th received payment in cash $500 September 27th sixth event organized and delivered, Birthday party for a 6 years old boy. Received payment in cash t000 September 29th Received the payment for the birthday party for the 7 years old boy of September 1211 $1,000 September 30th Richard pays to his parents a rent for using the car for business purposes and to go and come back from the gym $200 September 30th Richard promised to pay on October 8th to his parents the extra charge that comes in the insurance premium of their cars for having him as an additional driver (malo under 25 $800 Additional information September 30th inventory of brochures and cards showed that two thirds of them are still available (not used $300 Prepare "T" Accounts in ACCRUAL and CASH basis for this case using the following chart of accounts, when relevant, prepare the income statement Statement of Retained Esmings and Balance Sheet and then answer the questions ACCRUAL accountingt Revenues Telephone Expense Car Rent Expenses Car Rent Insurance Expense Costumes Expense Brochures Expense Gyn Membership Expense Insurance Expense Cash Brochures Accounts Receivables Prepaid Insurance Prepaid Gym Membership Costumes Accumulated Depreciation Costumes Web Site intangible asset) CASH accounting: Revenue Car rent expenses Car Rent Insurance Expense Costumes Expense Telephone Expense Owner's equity Advances From Customers Expense on Web site Insurance Expense Gym Membership Expense Brochures Expense Cash Costumes Depreciation Expense Accounts Payable At the end of the accounting period (Sep 30th, T account after AJE), what is the total of Non Current Liabilities? Use cash accounting Multiple Choice Between $100 and $1.999 Less than $100 Between $6,000 and $10,000 Between $2.000 and $5.999 More than $10,000