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% loan obtained on August 1, 2024. Recall that annual interest is paid each July 31. Assume $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 defects for one year. At the end of the year, the company estimates future warranty costs to be $4,000.

Tonys favorite memories of his childhood were the times he spent with his dad at camp. Tony was daydreaming of those days a bit as he and Suzie jogged along a nature trail and came across a wonderful piece of property for sale. He turned to Suzie and said, Ive always wanted to start a camp where families could get away and spend some quality time together. If we just had the money, I know this would be the perfect place. On November 1, 2025, Great Adventures purchased the land by issuing a $500,000, 6%, 10-year installment note to the seller. Payments of $5,551 are required at the end of each month over the life of the 10-year loan. Each monthly payment of $5,551 includes both interest expense and principal payments (i.e., reduction of the loan amount).

Late that night, Tony exclaimed, We now have land for our new camp; this has to be the best news ever! Suzie said, Theres something else I need to tell you. Im expecting! They decided right then, if it was a boy, they would name him Venture.

Required:

1. Complete the first three rows of an amortization schedule.

2. Record the purchase of land with the issuance of a long-term note payable on November 1, 2025.

3-a. Record the first two payments on November 30, 2025, and December 31, 2025.

3-b. Calculate the remaining balance of the note payable as of December 31, 2025.

4. The 12 monthly payments in 2026 (following year) will reduce the notes balance by an additional $38,014. How would the remaining balance of the note payable be reported in the balance sheet as of December 31, 2025?