At the end of 2022, the following information is available for Great Adventures.

• Additional interest for five months needs to be accrued on the $30,600, 6% loan obtained on August 1, 2021. Recall that annual interest is paid each July 31.
• Assume that $10,600 of the $30,600 loan discussed above is due next year.
• By the end of the year, $20,000 in gift cards have been redeemed. The company had sold gift cards of $25,600 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 $12,600.
• 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 $4,600.

Prepare the journal entries for transactions. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

No	Date	General Journal	Debit	Credit
1	Dec 31	Interest Expense selected answer correct	765 selected answer correct
		Interest Payable selected answer correct		765 selected answer correct
2	Dec 31	Notes Payable (Long-term) selected answer correct	10,600 selected answer correct
		Notes Payable (Current) selected answer correct		10,600 selected answer correct
3	Dec 31	Deferred Revenue selected answer correct	20,000 selected answer correct
		Sales Revenue selected answer correct		20,000 selected answer correct
4	Dec 31	Lossselected answer correct	12,600 selected answer correct
		Contingent Liability selected answer correct		12,600 selected answer correct
5	Dec 31	Warranty Expense selected answer correct	4,600 selected answer correct
		Warranty Liability selected answer correct		4,600 selected answer correct
6	Dec 31	Sales Revenue selected answer correct	100,000 selected answer incorrect
		Service Revenue selected answer correct	44,500 selected answer incorrect
		Interest Revenue selected answer correct	765 selected answer incorrect
		Retained Earnings selected answer correct
7	Dec 31	Retained Earnings selected answer correct	17,965 selected answer incorrect
		Interest Expense selected answer correct		765 selected answer incorrect
		Repairs and Maintenance Expense selected answer correct		12,600 selected answer incorrect
		Warranty Expense selected answer correct		4,600 selected answer correct