At the end of 2025, the following information is available for Great Adventures. Additional interest for five months needs to be accrued on the $30,000, 6% note payable obtained on August 1, 2024. Recall that annual interest is paid each July 31. Assume that $10,000 of the $30,000 note discussed above is due next year. Record the entry to reclassify the current portion of th long-term note. " By the end of the year, $20,000 in gift cards have been redeemed. The company had sold gift cards of $25,000 during the year am 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. Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Prepare an income statement for the period ended December 31, 2025. Choose the appropriate accounts to complete the company's income statement. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection. Post-closing GREAT ADVENTURES INCORPORATED es < Record entry to close the revenue accounts. Note: Enter debits before credits. Date December 31 General Journal Debit Credit Record entry Clear entry View general journal Prev 1 of 1 Next > < 2 3 5 6 Record entry to close the expense accounts. Note: Enter debits before credits. Date December 31 7 General Journal Debit Credit Mayt Droit 5 1 points Revenues Deferred Revenue Service Revenue eBook Net Sales Gross Profit S 5,000 4 44,500 0 0 49,500 0 S 49,500 Print Operating Expenses References Equipment Salaries Expense 77 62,000 24,000 0 0 0 0 0 0 0 0 Total Operating Expenses Operating Income (Loss) 86,000 (36,500) 0 0 Income Before Income Taxes (36,500) Assets GREAT ADVENTURES, INCORPORATED Balance Sheet December 31, 2025 Liabilities Current Assets Cash Accounts Receivable Inventory Current Liabilities 89,070 Accounts Payable 50,000 7,000 Interest Payable 20,800 0 750 Prepaid Insurance 900 Deferred Revenue 5,000 0 Notes Payable (Current) 44 10,000 0 Warranty Expense 4,000 0 0 0 0 0 Total Current Liabilities 40,550 0 Accounts Receivable 50,000 Total Current Assets 146,970 Total Liabilities 90,550 Long-term Assets Stockholders' Equity a Equipment 62,000 0 Accumulated Depreciation (25,250) 0 0 0 Additional Paid-in Capital 0 Total Stockholders' Equity 0 Total Assets $ 183,720 Total Liabilities and Stockholders' Equity $ 90,550