Using the information in Problem 8A, prepare an income statement and a statement of changes in equity for the year ended March 31, 2014, and a classified balance sheet at March 31, 2014. The owner made an additional investment during the year of $15,000. A $6,500 payment on the long-term notes payable will be made during the year ended March 31, 2015.

Analysis Component:

Why might Brenner Climbing Adventures be tempted to report the notes receivable as a current asset on the March 31, 2014, balance sheet?

Transcribed Image Text:

No. Account Debit Credit $ 2,600 168 Accumulated depreciation, equipment.... 300 Becky Brenner, capital ,000 34,700 31,200 9,600 6,500 1,100 101 Cash 606 Depreciation expense, equipment... . 1,875 120 10,000 633 Insurance expense... 19,000 7,500 64,515 126 Supplies 637 Supplies expense 270 1,800 2,300 9,100 2,150 Totals... $136,915 $136,915