At the end of 2025, the following information is available for Great Adventures Additional interest for five months needs to be accrued on the $30,200, 6% note payable obtained on August 1, 2024Recall that annual interest is paid each July 31 Assume that $10,200 of the $30,200 note discussed above is due next yearRecord 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 redeemedThe company had sold gift cards of $25,200 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 $12,200. For sales of MU watches, Great Adventures offers a warranty against defect for one yearAt the end of the year, the company estimates future warranty costs to be $4,200

At the end of 2025 , the following information is avallable for Great Adventures. - Additional interest for five months needs to be accrued on the $30,200,6% note payable obtained on August 1, 2024 . Recall that annual interest is paid each July 31 . - Assume that $10,200 of the $30,200 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 $25,200 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 $12,200. - 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 $4,200. 1. Record each of the transactions listed above in the 'General Journal' tab. Review the 'Generat Ledger' and the 'Trlal Balance' tabs to see the effect of the transactions on the account balances. 2. Review the 'Trial Balance' as of December 31,2025 , in the 'Trial Balance' tab. 3. Prepare a multiple-step income statement for the period ended December 31, 2025, in the 'Income Statement' tab. 4. Prepare a classified balance sheet as of December 31,2025 , in the 'Balance Sheet' tab. 5. Record the closing entries in the 'General Journal' tab. Prepare the journal entries for transactions. (If no entry is required for a particular transaction/event, sele in the first account field.) Prepare the journal entries for transactions. (If no entry is required for a particular transaction/event, select "No Journal E in the first account field.) 1 Additional interest for five months needs to be accrued on the $30,200,6% note payable obtained on August 1 , 2024. Recall that annual interest is paid each July 31 . Record the adjusting entry. 2 Assume that $10,200 of the $30,200 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 $25,200 during the year and recorded those as Deferred Revenue. Record the adjusting entry. 4. Great Adventures is a defendant in litigation involving a hilinn arrident durion nne of its arturnture raree the Note : = journal entry has been entered Unadjusted \begin{tabular}{|c|c|c|c|c|c|} \hline \multicolumn{6}{|c|}{ GREAT ADVENTURES, INCORPORATED } \\ \hline \multicolumn{6}{|c|}{ Balance Sheet } \\ \hline \multicolumn{6}{|c|}{ December 31,2025} \\ \hline \multicolumn{3}{|c|}{ Assets } & \multicolumn{3}{|l|}{ Liabilities } \\ \hline \multirow[t]{11}{*}{ Current Assots: } & & & Current Liabilities: & & \\ \hline & $ & 0 & & $ & 0 \\ \hline & & 0 & & & 0 \\ \hline & & 0 & & & 0 \\ \hline & & 0 & & & 0 \\ \hline & & of & & & 0 \\ \hline & & 0 & & & 0 \\ \hline & & of & & & 0 \\ \hline & & of & & & 0 \\ \hline & & 0 & Total Current Lipities & & 0 \\ \hline & & of & ; & & 0 \\ \hline Total Current Assets & & 0 & Total Liabilities & & 0 \\ \hline Long-term Assets: & & & Stockholders' Eq & & \\ \hline & & of & & & 0 \\ \hline & & of & , & & 0 \\ \hline & & of & 3 & & 0 \\ \hline & & & Total Stockholders' Equily & & 0 \\ \hline Total Assets & $ & 0 & 0. Total Liabilities and Stockholders' Equily & $ & 0 \\ \hline \end{tabular} Income statement Dpiante 8heet \begin{tabular}{|c|c|c|c|} \hline \multicolumn{4}{|c|}{ GREAT ADVENTURES, INCORPORATED } \\ \hline \multicolumn{4}{|c|}{ Income Statement } \\ \hline \multicolumn{4}{|c|}{ For the Period Ended December 31, 2025} \\ \hline \multicolumn{4}{|l|}{ Revenues: } \\ \hline Service Revenue & 44,600 & & \\ \hline Sales Revenue & 102,000 & & \\ \hline Sales Discounts & (360) & & \\ \hline Net Sales & 146,240 & & \\ \hline Cost of Goods Sold & 38,600 & & \\ \hline Gross Profit & & $ & 107,640 \\ \hline \multicolumn{4}{|l|}{ Operating Expenses: } \\ \hline Depreciation Expense & 17,350 & & \\ \hline Insurance Expense & 5,800 & & \\ \hline Rent Expense & 2,500 & & \\ \hline Salaries Expense & 24,500 & & \\ \hline Supplies Expense & 550 & & \\ \hline Bad Debt Expense & 2,450 & & \\ \hline Repairs and Maintenance Expense & 420 & & \\ \hline Total Operating Expenses & & & 53,570 \\ \hline Operating Income (Loss) & & & 54,070 \\ \hline Interest Revenue & E & & 140 \\ \hline Interest Expense & & & (1,070) \\ \hline Income Before Income Taxes & & & 53,140 \\ \hline Income Tax Expense & & & 14,600 \\ \hline \end{tabular}