At the end of 2022, the following information is available for Great Adventures. Additional interest for five months needs to be accrued on the $30,000, 6% loan obtained on August 1, 2021 Recall that annual Interest is paid each July 31. . Assume that $10,000 of the $30,000 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 $25.000 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 $12,000. . 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 $4,000. General General Income Trial Balance Balance Sheet Requirement Journal Ledger Statement 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.) View transaction lit View journal entry worksheet Credit General Journal No Date Debit 750 1 Dec 31 750 Interest Expense Interest Payable 10.000 2 Dec 31 Notes Payable (Long-term) Notes Payable (Current) 10,000 20,000 3 Dec 31 Deferred Revenue 20.000 GREAT ADVENTURES, INC Trial Balance December 31, 2017 Account Title Debit Credin $ 19.070 50.000 2.400 7.000 900 62.000 Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Prepaid Insurance Equipment Accumulated Depreciation Accounts Payable interest Payable income Tax Payable Deferred Revenue Notes Payable (Current) Notes Payablo (Long-term) Contingent Liability Warranty Liability Common Stock Retained Earnings Psales Revenue Sales Discounts Interest Revenue Cost of Goods Sold Depreciation Expense 25.250 20.800 750 14.500 5,000 10.000 20,000 12.000 4,000 20.000 15,650 140.000 350 120 38,500 17.250 500 CHOC 62.000 25,250 20,800 750 14,500 5,000 10,000 20.000 12,000 4,000 20.000 15650 140,000 ok 16 Equipment Accumulated Depreciation Accounts Payable Interest Payable income Tax Payable Deferred Raven Notes Payable Current) Notes Payablo (Long-term) Contingent Liability Warranty Liability Common Stock Retained Earrings Sales Revenue Sales Discounts Interest Revenue Cost of Goods Sold Depreciation Expense Supplies Expense Sataries Expense Bad Debt Expense Rent Expense Income Tax Expense insurance Expense Repairs and Maintenance Expense Total 350 120 38.500 17,250 500 24,000 2.400 2,400 14,500 5,700 400 314,970 $ $ 290,470 GREAT ADVENTURES, INC. Income Statement For the Period Ended December 31, 2022 $ 0 Revenues Service Revenue Sales Revenue Interest Revenue 140,000 120 0 Net Sales 140,120 38,500 $ 101,620 350 + 500 Cost of Goods Sold Gross Profit Operating Expenses Sales Discounts Supplies Expense Depreciation Expense Salaries Expense Bad Debt Expense Rent Expense Insurance Expense Repairs and Maintenance Expense 2 2 17,250 24,000 2,400 2,400 5,700 400 0 0 Total Operating Expenses Operating Income (Loss) Interest Expense 53,000 48,620 0 0 Income Before Income Taxes Income Tax Expense Net Income 48,620 14,500 34,120 $
