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

Additional interest for five months needs to be accrued on the $$31,800,6\%$ note payable obtained on August $1,2024.$ Recall that annual interest is paid each July $31.$

Assume that $$11,800$ of the $$31,800$ 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, $$20,000$ in gift cards have been redeemed. The company had sold gift cards of $$26,800$ 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 $$13,800.$

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 $$5,800.$

General Jounral

$1.$ Additional interest for five months needs to be accrued on the $$31,800,6\%$ note payable obtained on August $1,2024.$ Recall that annual interest is paid each July $31.$ Record the adjusting entry.

$2.$ Assume that $$11,800$ of the $$31,800$ note discussed above is due next year. Record the entry to reclassify the current portion of the long$-$term note.

$3.$ By the end of the year, $$20,000$ in gift cards have been redeemed. The company had sold gift cards of $$26,800$ during the year and recorded those as Deferred Revenue.

$4.$ 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 $$13,800.$ Record the adjusting entry.

$5.$ 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 $$5,800.$ Record the adjusting entry.

$6.$ Record the closing entry for revenue accounts.

$7.$ Record the closing entry for expense and loss accounts.