$10$

RWP$8-1($Algo$)$ Great Adventures Continuing Case $($GL$)$

At the end of $2025,$ the following information is available for Great Adventures.

$\frac{1\mathrm{.}21}{4}$

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References

Additional interest for five months needs to be accrued on the $$30,400,6\%$ note payable obtained on August $1,2024.$ Recall that annual interest is paid each July $31.$

Assume that $$10,400$ of the $$30,400$ note discussed above is due next year. Record the entry to reclassify the current portion of the long$-$term note.

By the end of the year, $$20,000$ in gift cards have been redeemed. The company had sold gift cards of $$25,400$ during the year and recorded those as Deferred Revenue.

Great Adventures is a defendant in litigation involving a biking accident during one of its adventure races. The company believes the likelihood of payment occurring is probable, and the estimated amount to be paid is $$12,400.$

For sales of MU watches, Great Adventures offers a warranty against defect for one year. At the end of the year, the company estimates future warranty costs to be $$4,400.$

$\backslash$table$[[$Requirement$,\backslash$table$[[$General$],[$Journal$]],\backslash$table$[[$General$],[$Ledger$]],$Trial Balance,$\backslash$table$[[$Income$],[$Statement$]],$Balance Sheet,$],[\backslash$table$[[1.$ Record each of the transactions listed above in the 'General Journal' tab. Review the 'General Ledger' and the 'Trial$],[$Balance$\text{'}$ tabs to see the effect of the transactions on the account balances.$],[2.$ Review the 'Trial Balance' as of December $31,2025,$ in the 'Trial Balance' tab.$],[3.$ Prepare a multiple$-$step income statement for the period ended December $31,2025,$ in the 'Income Statement' tab.$],[4.$ Prepare a classified balance sheet as of December $31,2025,$ in the 'Balance Sheet' tab.$],[5.$ Record the closing entries in the 'General Journal' tab.$]]]]$

Red text indicates no response was expected in a cell or a formula$-$based calculation is incorrect; no points deducted.