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Posted on Sep 18, 2024

At the end of 2022, the following information is available for Great Adventures. 1Additional interest for five months needs to be accrued on the $34,000,

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

1Additional interest for five months needs to be accrued on the $34,000, 6% loan obtained on August 1, 2021. Recall that annual interest is paid each July 31.
2Assume that $14,000 of the $34,000 loan discussed above is due next year.
3By the end of the year, $20,000 in gift cards have been redeemed. The company had sold gift cards of $29,000 during the year and recorded those as Deferred Revenue.
4Great 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 $16,000.
5For 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 $8,000.
6Record the closing entry for revenue accounts.
7 Record the closing entry for expense and loss accounts.

Adjusted GREAT ADVENTURES, INC. Trial Balance December 31, 2022 Account Title Credit Debit 89,670 54,000 2,800 11,000 1,300 92,800 Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Prepaid Insurance Equipment Accumulated Depreciation Accounts Payable Income Tax Payable Deferred Revenue Notes Payable (Long-term) Common Stock Retained Earnings Service Revenue Sales Revenue Sales Discounts Interest Revenue Cost of Goods Sold Depreciation Expense Supplies Expense Salaries Expense Bad Debt Expense Interest Expense Rent Expense Income Tax Expense Insurance Expense Repairs and Maintenance Expense Total 29,250 24,800 16,500 29,000 34,000 20,000 35,450 46,500 140,000 550 520 40,500 19,250 1,500 34,000 3,400 1,450 4,400 16,500 7,700 800 378,820 $ 378,820 At the end of 2022, the following information is available for Great Adventures. Additional interest for five months needs to be accrued on the $34,000, 6% loan obtained on August 1, 2021. Recall that annual interest is paid each July 31. Assume that $14,000 of the $34,000 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 $29,000 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 $16,000. 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 $8,000. GREAT ADVENTURES, INC. Income Statement For the Period Ended December 31, 2022 Revenues: Net Sales Gross Profit Operating Expenses: Total Operating Expenses Operating Income (Loss) Income Before Income Taxes GREAT ADVENTURES, INC. Balance Sheet December 31, 2022 Assets Liabilities Current Assets Current Liabilities: 01 Total Current Liabilities 0 Total Liabilities Total Current Assets Long-term Assets: Stockholders' Equity 0 Total Stockholders' Equity 0 Total Liabilities and Stockholders'Equity Total Assets $ Adjusted GREAT ADVENTURES, INC. Trial Balance December 31, 2022 Account Title Credit Debit 89,670 54,000 2,800 11,000 1,300 92,800 Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Prepaid Insurance Equipment Accumulated Depreciation Accounts Payable Income Tax Payable Deferred Revenue Notes Payable (Long-term) Common Stock Retained Earnings Service Revenue Sales Revenue Sales Discounts Interest Revenue Cost of Goods Sold Depreciation Expense Supplies Expense Salaries Expense Bad Debt Expense Interest Expense Rent Expense Income Tax Expense Insurance Expense Repairs and Maintenance Expense Total 29,250 24,800 16,500 29,000 34,000 20,000 35,450 46,500 140,000 550 520 40,500 19,250 1,500 34,000 3,400 1,450 4,400 16,500 7,700 800 378,820 $ 378,820 At the end of 2022, the following information is available for Great Adventures. Additional interest for five months needs to be accrued on the $34,000, 6% loan obtained on August 1, 2021. Recall that annual interest is paid each July 31. Assume that $14,000 of the $34,000 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 $29,000 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 $16,000. 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 $8,000. GREAT ADVENTURES, INC. Income Statement For the Period Ended December 31, 2022 Revenues: Net Sales Gross Profit Operating Expenses: Total Operating Expenses Operating Income (Loss) Income Before Income Taxes GREAT ADVENTURES, INC. Balance Sheet December 31, 2022 Assets Liabilities Current Assets Current Liabilities: 01 Total Current Liabilities 0 Total Liabilities Total Current Assets Long-term Assets: Stockholders' Equity 0 Total Stockholders' Equity 0 Total Liabilities and Stockholders'Equity Total Assets $