case. 2

Case 62 Ricky Rock Wrestling for Fun Richard Brandt graduated from York University with his BAS although he spent more time in the gym than in the classrooms and libraries. His parents and grandparents were very proud and happy of this achievement. As a graduation gin, 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 kids, teen and adults that want to learn and practice wresting activities for fun by learning how to perform headlocks, leg scissors and other tricks As a student, he learned and practiced Greco-Roman wrestling 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 1st Opened a business bank account with the $20.000 received as a gift from the Grandparents $20,000 September 1st Signed 12 month commercial insurance contract for any liability that might emerge from the activity, 5800 per month for 1 year September 2nd Purchase in cash costumes of famous wrestlers to wear at parties. The costumes can last one full year $600 September 3rd Paid in cash the set up of 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 will be paid on October 5th $450 September 5th First event organized and delivered Birthday party for a 5 years old boy Received the payment in cash $1,000 September 6th Second event organized and delivered as part of a series of activities organized by a charity to raise funds. One third is paid in cash while the rest will be paid by the Charily Organization on October 6th $3,000 September Och Labour day, no events, no work so 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 12th Third event organized and delivered Birthday party for a 7 years old boy Parents promise to pay in a few days $1,000 September 15th Pays first 2 months of insurance $1,200 September 19th & 20th Fourth event organized and delivered. Provided one of the activities corporate toarn building extravagarwa weekend. The contract signod says the payment will be effective in 30 days with a choque $2,000. September 23 d Paid the gym membership for Saplomber, October, November and December $2,000 September 24th Telephone bill for $200 was received for the month of September, payment due October 6th 5200 September 20th Fith event organized and delivered Birthday party for a 4 years old boy. Received payment in cash $1,000 September 2014 One of the parents at the birthday party for a 4 years old boy hires him for his sor's birthday party on October 10th. Received payment in cash $500 September 27th Sith event organized and delivered, Birthday party for a 6 years old boy Received payment in cash $1,000 Boptomber 20th Received the payment for the birthday party for the 7 years old boy of September 12th $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 Oth 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 Precare fem DADCRUAL CASH basis for this case using the following chart of what parehe income scent Statement of Retained Earnings and Balance Shoot and the answer the questions