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

Additional interest for five months needs to be accrued on the $33,000, 6% note payable obtained on August 1, 2024. Recall that annual interest is paid each July 31.Assume that $13,000 of the $33,000 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 $28,000 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 $15,000.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 $7,000. Prepare the journal entries for transactions. 1. Additional interest for five months needs to be accrued on the $33,000, 6% note payable obtained on August 1, 2024. Recall that annual interest is paid each July 31. Record the adjusting entry. 2. Assume that $13,000 of the $33,000 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 $28,000 during the year and recorded those as Deferred Revenue. Record the adjusting entry. 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 $15,000. 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 $7,000. Record the adjusting entry. 6. Record the closing entry for revenue accounts. 7. Record the closing entry for expense and loss accounts.