\begin{tabular}{|c|c|c|} \hline \multicolumn{3}{|c|}{ GREAT ADVENTURES, INCORPORATED } \\ \hline \multicolumn{3}{|c|}{ Income Statement } \\ \hline \multicolumn{3}{|c|}{ For the Period Ended December 31, 2025} \\ \hline \multicolumn{3}{|l|}{ Revenues } \\ \hline Cost of Goods Sold & 268,640 & \\ \hline Utilities Expense & 0 & \\ \hline Salaries Expense & 37,000 & \\ \hline Depreciation Expense & 22,500 & \\ \hline \multirow[t]{2}{*}{ Net Sales } & 328,140 & \\ \hline & 0 & \\ \hline Gross Profit & & \$ 328,140 \\ \hline \multicolumn{3}{|l|}{ Operating Expense: } \\ \hline & 0 & \\ \hline & 0 & \\ \hline & 0 & \\ \hline & 0 & \\ \hline & 0 & \\ \hline & 0 & \\ \hline & 0 & \\ \hline Total Operating Expenses & & 0 \\ \hline \multirow[t]{3}{*}{ Operating Income (Loss) } & & 328,140 \\ \hline & & 0 \\ \hline & & 0 \\ \hline \multirow[t]{3}{*}{ Income Before Income Taxes } & & 328,140 \\ \hline & & 0 \\ \hline & & \$ 328,140 \\ \hline \end{tabular} Now that operations for outdoor clinICs and TEAM events are running smoothly, Suzle thinks of another area for business expansion. She notices that a few clinic participants wear multiuse (MU) watches. Beyond the normal timekeeplng features of most watches, MU watches are able to report temperature, altitude, and barometric pressure. MU watches are waterproof, so molsture from kayakIng, raln, fishing, or even diving up to 100 feet won't damage them. Suzle decides to have MU watches avallable for sale at the start of each clinic. The following transactions relate to purchases and sales of watches during the second half of 2025. All watches are sold for $760 each. July17July31August12August22September19September27October27November20December4December8Purchased89watchesfor$13,350($150perwatch)onaccount.Sold66watchesfor$50,160cash.Purchased66watchesfor$10,560($160perwatch)cash.Sold56watchesfor$42,560onaccount.PaidforwatchespurchasedonJuly17.Receivecashof$25,536forwatchessoldonaccountonAugust22.Purchased145watchesfor$24,215($167perwatch)cash.Sold126watchesfor$95,760cash.Purchased126watchesfor$22,302($177perwatch)onaccount.Sold66watchesfor$50,160onaccount. July 17 Purchased 89 watches for $13,350 ( $150 per watch) on account. July 31 Sold 66 watches for $50,160 cash. August 12 Purchased 66 watches for $10,560 ( $160 per watch) cash. August 22 Sold 56 watches for $42,560 on account. September 19 Paid for watches purchased on July 17. September 27 Receive cash of $25,536 for watches sold on account on August 22 . october 27 Purchased 145 watches for $24,215 ( $167 per watch) cash. November 20 sold 126 watches for $95,760 cash. December 4 Purchased 126 watches for $22,302 ( $177 per watch) on account. December 8 sold 66 watches for $50,160 on account. Late In December, the next generation of multiuse (MU II) watches Is released. In addition to all of the features of the MU watch, the MU II watches are equipped with a global positioning system (GPS) and have the ability to download and play songs and videos off the Internet. The demand for the original MU watches is greatly reduced. As of December 31, the estimated net realizable value of MU watches is only $100 per watch. \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ GREAT ADVENTURES, INCORPORATED } \\ \hline \multicolumn{5}{|c|}{ Balance Sheet } \\ \hline \multicolumn{5}{|c|}{ December 31, 2025} \\ \hline \multicolumn{3}{|c|}{ Assets } & \multicolumn{2}{|l|}{ Liabilities } \\ \hline Current Assets: & & & Current Liabilities: & \\ \hline Cash & 231 & 160,491 & Accounts Payable & 27,802 \\ \hline Accounts Receivable & 2+ & 104,364 & Notes Payable (Long-term) & 56,000 \\ \hline \multirow[t]{4}{*}{ Inventory } & & A(155,653) & & 0 \\ \hline & & 0 & & 0 \\ \hline & & 0 & Total Current Liabilities & 83,802 \\ \hline & & 0 & & 0 \\ \hline Total Current Assets & & 109,202 & Total Liabilities & 83,802 \\ \hline \multirow[t]{5}{*}{ Long-term Assets: } & & & Stockholders' Equity & \\ \hline & & 0 & Common Stock & 25,655 \\ \hline & & 0 & Retained Earnings & 364,840 \\ \hline & & 0 & & 0 \\ \hline & & 0 & Total Stockholders' Equity & 390,495 \\ \hline Total Assets & & S 109,202 & Total Liabilities and Stockholders' Equity & $474,297 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|} \hline No & Drst & \multicolumn{2}{|c|}{ Gankra| Jau } & \multirow{2}{*}{Sezt132000} & \multirow[t]{2}{*}{ Gradt } \\ \hline 5 & Juby 19 & inverasy & & & \\ \hline & & Acrounts Pryatin & & & \\ \hline \multirow[t]{2}{*}{2} & July & Cach & & 5a,+ & \\ \hline & & Svas Fesenas & & & 50,120 \\ \hline \multirow[t]{2}{*}{2} & Jaby & Caet of Gosds Sold & & 5a,+0 & \\ \hline & & invertasy & 0 & & 50.1608 \\ \hline \multirow[t]{2}{*}{4} & Awout 12 & inveraay & & sisec & \\ \hline & & Can & & & sec \\ \hline \multirow[t]{2}{*}{5} & Alout 22 & Accounn Resaivatis & 0 & 42sen & \\ \hline & & Gras Fesenas & & & 42500 \\ \hline \multirow[t]{2}{*}{ a } & Awout 22 & Caet of Goods Sold & & 42,2000 & \\ \hline & & inerosay & & & \\ \hline \multirow[t]{2}{*}{7} & Seprenber ta & Accounn Pasati & & 13,2500 & \\ \hline & & Cant & & & \\ \hline \multirow[t]{2}{*}{ a } & Sepanse: 27 & Can & & 25sen & \\ \hline & & Accounts Rectivabis & & & \\ \hline \multirow[t]{2}{*}{9} & Daster 27 & imerasy & & 24215 & \\ \hline & & Cans & & & 24380 \\ \hline \multirow[t]{2}{*}{10} & Noventeer 20 & Cach & & as, 700 O & \\ \hline & & Sves Fevenat & 0 & & 95760 \\ \hline \multirow[t]{2}{*}{11} & Noventater 20 & Coet at Goods Sold & & as,7w0 0 & \\ \hline & & invertasy & 0 & & 95760 \\ \hline \multirow[t]{2}{*}{12} & Desenter OA & invenasy & & 22,3000 & \\ \hline & & Accounts Payatin & 0 & & 22.300 \\ \hline \multirow[t]{2}{*}{13} & Decanter ce & Mccosunn Reschivatin & & 5a,+ & \\ \hline & & Sves Fevenat & 0 & & 50,460 \\ \hline \multirow[t]{2}{*}{14} & Desenter 60 & Ceat at Gasds Sald & 0 & 54,+0 & \\ \hline & & invertasy & 0 & & 5a,1600 \\ \hline \multirow[t]{2}{*}{13} & Decenter 3t & Coet at Goods Sold & & 24,0000 & \\ \hline & & invertasy & 0 & & sincos2 \\ \hline \multirow[t]{2}{*}{16} & Desenter 34 & Ceat of Gasds Sald & 0 & & \\ \hline & & inveriasy & & & \\ \hline \multirow[t]{2}{*}{17} & Decenter 3t & Caet af Gosds Sold & 0 & & \\ \hline & & inveraay & 8 & & \\ \hline \end{tabular}