Confused why balance sheet isn't adding up and wondering about the closing entries
Tony and Suzie are ready to expand Great Adventures even further in 2022. Tony believes that many groups in the community (for example, Boy Scouts, church groups, civic groups, and local businesses) would like to hold one-day outings for their members. Groups would engage in outdoor activities such as rock climbing, fishing, capture the flag, paintball, treasure hunts, scavenger hunts, nature hikes, and so on. The purpose of these one-day events would be for each member of the group to learn the importance of TEAM (Together Everyone Achieves More). Tony knows that most people are not familiar with these types of activities, so to encourage business he allows groups to participate in the event before paying. He offers a 5% quick-payment discount to those that pay within 10 days after the event. He also guarantees that at least eight hours of outdoor activities will be provided or the customer will receive a 20% discount. For the first six months of the year, the following activities occur for TEAM operations, Jan. 24 Great Adventures purchases outdoor gear such as ropes, helmets, harnessen, compasses, and other miscellaneous Peb. 25 Mr. Kendall's Boy Scout troop participate in a one-day TEAM adventure. Normally, Tony would charge a group of this size $3,500, but he wants to encourage kids to exercise more and enjoy the outdoors so he charges the group only $3,000. Great Adventures provides these services on account. Feb. 28 The Boy Scout troop pays the tull amount owed, less the 51 quick-payment discount. Mar. 19 Reynolds Management has ito employees participate in a one-day TEAM adventure. Great Adventures provides services on account for $4,000, and Reynold's agrees to pay within 30 days. Mar. 27 Reynold's pays the full amount owed, lean the 5s quick-payment discount. Apr. 7 Several men from the Elke Lodge decide to participate in a TRAM adventure. They pay $7,500, and the event is scheduled for the following week. Apr. 14 The TEAM adventure is held for members of the Elks Lodge. Apr. 30 Myers Manufacturing participates in a TEAM adventure. Great Adventures provides services on account for $6,000, and Myers agrees to pay within 30 days. May 31 Myers Manufacturing fans to pay the amount owed within the specified period and agrees to sign a three-month. Jun. 15 several MBA groups participate in TRAM adventures. Great Adventures provides services on account for $24,000 to these groups, with payment due in July. Suzie estimates uncollectible accounts to be 10% of accounts receivable (which does not include the $6,000 note receivable from Myers Manufacturing). Prepare the adjusting entry for uncollectible accounts. Requirement General General Jou General Journaliger Trial Balance Income Statement Balance Sheet No Date Account Title Debit Credit 1 Jan 24 Equipment 5,000 Cash 5,000 N Feb 25 3,000 Accounts Receivable Service Revenue 3,000 3 Feb 28 Cash Sales Discounts Accounts Receivable 2,850 150 3,000 4 Mar 19 4,000 Accounts Receivable Service Revenue 4,000 5 Mar 27 Cash Sales Discounts Accounts Receivable 3,800 200 4,000 6 Apr 07 7,500 Cash Deferred Revenue 7,500 7 Apr 14 7,500 Deferred Revenue Service Revenue 7,500 8 Apr 6,000 Accounts Receivable Service Revenue 6,000 8 Apr 30 Accounts Receivable Service Revenue 6,000 6,000 9 May 31 Notes Receivable Accounts Receivable 6,000 6,000 10 Jun 15 Accounts Receivable Service Revenue 24,000 24,000 11 Jun 30 2,400 Bad Debt Expense Allowance for Uncollectible Accounts 2,400 12 Jun 30 40 Interest Receivable Interest Revenue 40 13 Jun 30 Service Revenue Interest Revenue Retained Earnings 14 Jun 30 Retained Earnings Bad Debt Expense Adjusted GREAT ADVENTURES, INC. Income Statement For the Period Ended June 30, 2022 Revenue: Service Revenue $ 44,500 Interest Revenue 40 0 0 Total Revenue $ 44,540 Expense: 0 2,400 Bad Debt Expense Depreciation Expense Salaries Expense Insurance Expense Interest Expense Supplies Expense 8,000 12,000 2,400 900 500 0 Total Expense Net Income $ 26,200 18,340 $ 47,650 24,000 2,400 D 6,000 40 400 45,000 Cash Accounts Receivable Allowance for Uncollectible Accounts Notes Receivable Interest Receivable Prepaid Rent Equipment Accumulated Depreciation Accounts Payable Interest Payable Notes Payable Common Stock Retained Earnings Service Revenue Interest Revenue Sales Discounts Depreciation Expense Supplies Expense Salaries Expense Bad Debt Expense Interest Expense Rent Expense Insurance Expense Total 16,000 2,800 1,650 30,000 20,000 33,450 44,500 40 350 8,000 500 12,000 2,400 900 1.200 2,400 150 A40ls 150 840
