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 of 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 Wrestling for Fun "Ricky Rock offers a party package designed for active bids, teen and adults that want to learn and practice wrestling activities for fun by learning how to perform headlocks, leg scissors 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 perties focused on wresting. 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 furt in the GTA The following is a list of transactions that occured during the test month of operations, September tit Opened a business bank account with the $20,000 received as a gift from the Grandparents $20,000 September of signed 12 month commercial vurance contract for any lability that might emerge from the city, 5600 per month for you September and purchase in cash costumes of famous wresten to wear at portes. The costumes can last one full year $600 September yd puid in canh the set up of the website. I expects to last the whole Ife of his business 52.000 September in Collected the brochures and presentation cards to be used in promoting the business. One third sprio in cash while the rest will be paid on October $450 September shpirt event organized and covered Birdy party for a 5 years old boy received the payment in cam $1,000 September oth second event organized and delivered as part of a series of activities organised by a chwyt refunds. One twed is paid in cach while the rest will be paid by the Charty Organization on October sth $3.000 September 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 25 hours) September 12th this event organized and delivered. Bunday party for a 7 years old boy. Parents promise to pay in a few days $1000 September 15th Pays first 2 months of insurance $1200 September 19th & 20th Fourth event organized will be effective in 30 days with a cheque $2.000 vered. Provided one of the activities of a corporate team buiding extravaganza weekend. The contract signed says the payment September 23rd paid 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 26thEn event organized and delivered Birthday 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 10 Received payment in cash $500 September 27th sixth event organised and deivered. Bimday party for a 6 years old boy. Received payment in cash $1000 September 29th Received the payment for the birthday party for the 7 years old boy of September 12th $1000 September 30th Richard pays to his parents arent for the car for business purposes and to go and come back from the gym $200 September 30th Richard promised to pay on October 6th to his parents the extra charge that comes in the insurance premium of their cars for having him as an additional driver (male under 25) $800 Additional information September 30th Inventory of brochures and cards showed that two thirds of them are still available inot used 5300 Prepare "T" Accounts ACCRUAL and CASH basis for this one using the following chart of accounts, when relevant prepare the income statement, Statement of retained Earnings and Balance Sheet and the answer the questions ACCRUAL accounting: Revenues Cash Telephone Expense Brochures Car Rent Expenses Accounts Receivables Car Rent Insurance Expense Prepaid Insurance Costumes Expense Prepaid Gym Membership Brochures Expense Costumes Gys Membership Expense Accumulated Depreciation Costumes Insurance Expense Web Site intangible asset) Advances from Customers Accounts Payable Owner's Equity Costumes Depreciation Expense Telephone Payable 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 Taccount after AJE), what is the balance of Owner's equity? Use cash accounting Multiple Choice More than $20.000 Between $10,000 and $14,999 Less than $5.000 Between $5.000 and $9.999 Between $15.000 and $20,000