Chapter 10 Continuous Problem i 1 Saved Help Save & Exit Submit 50 points Print References Tony and Suzie have purchased land for a new camp. Now they need money to build the cabins, dining facility, a ropes course, and an outdoor swimming pool. Tony and Suzie first checked with Summit Bank to see if they could borrow an additional $1 million, but unfortunately the bank turned them down as too risky. Undeterred, they promoted their idea to close friends they had made through the outdoor clinics and TEAM events. They decided to go ahead and sell shares of stock in the company to raise the additional funds for the camp. Great Adventures has authorized $1 par value common stock. When the company began on July 1, 2021, Tony and Suzie each purchased 10,000 shares (20,000 shares total) of $1 par value common stock at $1 per share. The following transactions affect stockholders' equity during the remainder of 2022: November 5 Issue an additional 100,000 shares of common stock for $10 per share. November 16 Purchase 10,000 shares of its own common stock (i.e., treasury stock) for $15 per share. November 24 Resell 4,000 shares of treasury stock at $16 per share. December 1 Declare a cash dividend on its common stock of $11,400 ($0.10 per share) to all stockholders of record on December 15. December 20 Pay the cash dividend declared on December 1. December 31 Pay $800,000 for construction of new cabins and other facilities. The entire expenditure is recorded in the Buildings account. Check my work General Journal Debit Credit 1,000,000 100,000 No Date 1 Nov 05 Cash Common Stock Additional Paid-in Capital 2 Nov 16 Treasury Stock Cash 3 150,000 150,000 Nov 24 Cash 64,000 Additional Paid-in Capital 4,000 Treasury Stock 60,000 4 Dec 01 Dividends Dividends Payable 5 Dec 20 Dividends Payable Cash 6 Dec 30 Buildings Cash 8 Dec 31 No Transaction Recorded 11,400 11,400 11,400 11,400 800,000 800,000 View transaction list Journal entry worksheet 1 2 3 4 5 6 7 8 9 Prepare the closing entry for the dividend account. Note: Enter debits before credits. Date Dec 31 General Journal Debit Credit Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Choose the appropriate accounts to be reported on the income statement. The unadjusted, or post-closing balances will appear for each account, based on your selection. Unadjusted Net Sales GREAT ADVENTURES, INC. Income Statement For the Period Ended December 31, 2022 $ 0 0 0 0 0 Gross Profit Operating Expense 0 Total Operating Expenses Operating Income (Loss) $ 0 Dates: Nov 05 to: Dec 30 0 0 0 0 0 0 0 0 0 0 0 0 Assets Current Assets: 10 Balance Sheet December 31, 2022 0 0 Current Liabilities: Liabilities $ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Total Current Liabilities 0 0 0 0 0 Total Current Assets 0 Total Liabilities 0 Long-term Assets: Stockholders' Equity 0 0 0 0 0 0 Total Stockholders' Equity 0 Total assets $ 10 0 Total Liabilities and Stockholders' Equity $ 0