Case #2. 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 gift, Richards 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 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 parties 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 Fun in the GTA The following is a list of transactions that occurred du ing the first month of operations September 11 Opened a business bank account with the $20.000 received as a gift from the Grandparents $20,000 September 18 signed 12 month commercial insurance contract for any liability that might emerge from the activity, $600 per month for 1 year September and purchase in cash costumes of famous wrestlers to wear at perses. The costumes can last one full year $600. September 314 Poid in coth the set up of the website. 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 cath while the rest will be paid on October 5th $450. September sin first event organized and delivered Birthday party for a 5 years old boy. Heceived the payment in canh $1000 September oth 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 Charity Organization on October $3.000 Septemberg 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 route of 25 hours) September 19th Third event organised and delivered Birthday 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 and delivered. Provided one of the activities 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 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 26th Finth event organized and delivered. Birthday party for a 4 years old boy Received payment in cash $1.000 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 Receved payment in cath $500 September 27th Sath event organized and delivered Birthday 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 $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 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 se valable 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 Earnings and Balance Sheet and then answer the questions ACCRUAL accounting Revenues Cash Telephone Expense Brochures Car Rent Expenses Accounts Receivables Car Rent Insurance Expense Prepaid Insurance Costumes Expense Prepaid Gyn Membership Brochures Expense Costumes Gyn Membership Expense Accumulated Depreciation Costumes Insurance Expense Web Site intangible asset) Advances From Customers Accounts Payable Owner's Equity Costumes Depreciation Expense Telephone Payable Help Sove CASH accounting: Revenue Car rent expenses Car Rent Insurance Expense Costumes Expense Telephone Expense Owner's equity Advances From Custovers Expense on Web Site Insurance Expense Gyn Membership Expense Brochures Expense Cash Costunes Depreciation Expense Accounts Payable At the end of the accounting period (Sep 30th Taccount after AJE), what is the balance of CashBank account (use only one account for all cash/cheque transactions). Use cash accounting Multiple Choice More than $20.000 Between $17000 and $7799 Less than $15.000 between $18.000 and 12.05 Between $15.000 and $6.999