create an adjusted and unadjusted trial balance chart

balance sheet and income statement

Great Adventures Company, Inc,, specializes in supplies, gears and equipment for sports and outdoor adventures. The products it sells range from tennis balls, gloves to skiing gears, and off-road motorcycles. The company purchases its products from manufactures worldwide and sells them to a large network of independent retail shops and dealers in North America. Business is booming as the population becomes more health-conscious and more people participate in sports and outdoor adventures. In addition to its main bosiness, the company is planning to diversify its business into running ski resorts and out-door parks. The company's stock is actively traded on the New York Stock Exchange. At the end of the first quarter of the year 2022, the company's CFO is in the process of preparing financial statements for filing with the SEC and reporting to shareholders at the coming stockholder's conference late April. The CFO has obtained summarized information on the company's business activities from the controller's office. The CFO asks for your assistance to analyze the information and come up with a draft of quarterly financial statements with a brief analysis. Summary of Business Activities in the First Quarter 2022 All dollar amounts are in thousands (000) except the per-share values. 1. To finance business expansion, the company signed an agreement with a national asks for your assistance to analyze the information and come up with a draft of quarterly financial statements with a brief analysis. Summary of Business Activities in the First Ouarter 2022 All dollar amounts are in thousands (000) except the per-share values. 1. To finance business expansion, the company signed an agreement with a national bank in December 2021 to obtain a $30,000 three-year loan. The amount was deposited into the company's bank account on January 1, 2022. The interest on the loan is due semiannually and carries a 12% annual interest rate. 2. On January 20 , Great Adventures reached an agreement to purchase a large plot of land in a mountainous area in Vermont as the site for the future ski resort. In this share-based transaction, the company agreed to issue 500,000 shares of its common stock as a way of payment. The common stock has a $1 par value per share. The transaction was closed on March 1 when stocks were trading at $23 per share. 3. On February 1, the company issued five million shares of its common stock through an investment banker on Wall Street and received $95,760 in cash proceeds. 4. In January, the company received $45,000 in cash from customers who bought merchandizes last year. The remaining $30,000 was received in February. 5. On January 28 , the company paid its suppliers for a total of $29,630 in cash through its bank for the purchases made last year. 6. On February 1, the company signed an agreement with a national TV station to run the company's infomercial between 11:00 am - 12:00 pm each day for three months and paid a total cost of $1,660. 7. On February 15, the company closed a deal to purchase a new warehouse bailding in a suburban area outside Boston for $8,800 in cash. The warchouse was placed in use immediately. 8. On February 28, the company closed a deal to sell an office building for $4.580 in cash at a significant gain of $2,115. The building was temporarily rented to anothercompany before it was sold. The building was purchase in 1980 for a total cost of $5,675. 9. On February 28, the company paid its suppliers for the remaining unpaid purchases made last year. 10. On March 1, the company paid the employer's portion of health insarance premium to the insurance provider. The total amount paid was $12,435 which would cover a period of 12 months. The remainder of the premium was paid by the employees through salaries withholding, according to the employment contract. 11. On March 1, the company purchased 300,000 shares of its own common stock at $24 per share. These shares were needed to issue to top executives for their employee stock option plan. 12. On March 30, the company declared and paid a quarterly cash dividend of $0.20 for shares outstanding on March 28 . 13. Company's total sales for the quarter are listed below. All sales were credit sales. Tratal Nat Calan The amount was net of sales return and sales discount. Pagel2 14. The collection for sales was as follows: January sales were received in full by the end of March. The total amount received for February and March sales was $138,000 and $106,000, respectively. 15. Company's total salary and other operating expenses cach month were as follows: Salarv \& Pavroll Ocher Ocerating Salaries were paid in the form of direct deposits to employees bank accounts biw eckly; the employees' portion of health insarance premium was withlheld from salaries and paid to the insurance provider at the same time when salaries were paid: the estimated personal income taxes were withheld and paid to the government agencies before the end of each monch. Employer's payroll taxes which inctuded the unemploymeat tax and social security tax were remitted to the government agencies immediately as they were recorded. Oher operating expenses which included utility. property taxes, freight-out, and ceher miscellaneous expenses were all paid in cash via online banking- 16. Company's merchandize purchases were as follows: Thtal Mewhandien The cormany's parchase agroememt specifies that the supptiers ship merchandizes and iend invoices, and the company inspects merchandizes after roceiving them and pay the invoices after inspection. The porchase amount listed incloded purchase price, tax, tariff, shipping, and insurance, net of purchase retums and discounts. 17. Payment for purchases were as follows: January parchases were folly paid by the end of March. The amount paid for February and March purchases was $99.900 and $7.000, respectively. The remaining unpaid purchases woald be paid in the future months in April and May. 18. Company paid in cash for the interest on the 2-year connmercial noto for the curnent quarter as well as the amount awed from last year. The note is not due antil June 30 . 2023. 19. The CFO also identificd the following areas that need to be adjasted: A. Employoe salary for the 4h week in March totaled $6,$00 and will be paid biweekly on April Sth through direct deposit. B. Goods ordered by cumpomers in the past year but sot deliverod were all delivered on time in January. However, the delivery of goods to some customers in the northeast region of the U.S. for sales made in March was delayed because of an unexpeeled snowsiorm. As a result, sales totaled 557,000 were not delivered and the merchandire remained in the company"'s warchouse. C. The depreciation for eqsipment and buildings totaled 56,800 for the quarter. D. The cast for the three-month informercial paid on February I reaires a proper adjustment. E. Health izcurance premium for Jamuary asd Febraary, totaled 52,300 , was prepaid last year. The bealth insurance permiam paid on March 1 coven a period of 12 months. Proper adjustments are required. F. Interest expense oe the new 3-year 12% loan borrowed in Jatwary needs to be recognized although not yet paid. G. Company's inventory system shows the total costs of inventory on hand at the end of the quarter, based on LIFO, totaled $145,000. The number has been confirmed by a companywide inventory count complcted at the end of March H. Company"s income tax rate is 28%. Balance Sheet for Great Adventares at 12/31/2021 Great Adventures, Inc. Balance Sheet (In USD 1,000) Great Adventures Company, Inc,, specializes in supplies, gears and equipment for sports and outdoor adventures. The products it sells range from tennis balls, gloves to skiing gears, and off-road motorcycles. The company purchases its products from manufactures worldwide and sells them to a large network of independent retail shops and dealers in North America. Business is booming as the population becomes more health-conscious and more people participate in sports and outdoor adventures. In addition to its main bosiness, the company is planning to diversify its business into running ski resorts and out-door parks. The company's stock is actively traded on the New York Stock Exchange. At the end of the first quarter of the year 2022, the company's CFO is in the process of preparing financial statements for filing with the SEC and reporting to shareholders at the coming stockholder's conference late April. The CFO has obtained summarized information on the company's business activities from the controller's office. The CFO asks for your assistance to analyze the information and come up with a draft of quarterly financial statements with a brief analysis. Summary of Business Activities in the First Quarter 2022 All dollar amounts are in thousands (000) except the per-share values. 1. To finance business expansion, the company signed an agreement with a national asks for your assistance to analyze the information and come up with a draft of quarterly financial statements with a brief analysis. Summary of Business Activities in the First Ouarter 2022 All dollar amounts are in thousands (000) except the per-share values. 1. To finance business expansion, the company signed an agreement with a national bank in December 2021 to obtain a $30,000 three-year loan. The amount was deposited into the company's bank account on January 1, 2022. The interest on the loan is due semiannually and carries a 12% annual interest rate. 2. On January 20 , Great Adventures reached an agreement to purchase a large plot of land in a mountainous area in Vermont as the site for the future ski resort. In this share-based transaction, the company agreed to issue 500,000 shares of its common stock as a way of payment. The common stock has a $1 par value per share. The transaction was closed on March 1 when stocks were trading at $23 per share. 3. On February 1, the company issued five million shares of its common stock through an investment banker on Wall Street and received $95,760 in cash proceeds. 4. In January, the company received $45,000 in cash from customers who bought merchandizes last year. The remaining $30,000 was received in February. 5. On January 28 , the company paid its suppliers for a total of $29,630 in cash through its bank for the purchases made last year. 6. On February 1, the company signed an agreement with a national TV station to run the company's infomercial between 11:00 am - 12:00 pm each day for three months and paid a total cost of $1,660. 7. On February 15, the company closed a deal to purchase a new warehouse bailding in a suburban area outside Boston for $8,800 in cash. The warchouse was placed in use immediately. 8. On February 28, the company closed a deal to sell an office building for $4.580 in cash at a significant gain of $2,115. The building was temporarily rented to anothercompany before it was sold. The building was purchase in 1980 for a total cost of $5,675. 9. On February 28, the company paid its suppliers for the remaining unpaid purchases made last year. 10. On March 1, the company paid the employer's portion of health insarance premium to the insurance provider. The total amount paid was $12,435 which would cover a period of 12 months. The remainder of the premium was paid by the employees through salaries withholding, according to the employment contract. 11. On March 1, the company purchased 300,000 shares of its own common stock at $24 per share. These shares were needed to issue to top executives for their employee stock option plan. 12. On March 30, the company declared and paid a quarterly cash dividend of $0.20 for shares outstanding on March 28 . 13. Company's total sales for the quarter are listed below. All sales were credit sales. Tratal Nat Calan The amount was net of sales return and sales discount. Pagel2 14. The collection for sales was as follows: January sales were received in full by the end of March. The total amount received for February and March sales was $138,000 and $106,000, respectively. 15. Company's total salary and other operating expenses cach month were as follows: Salarv \& Pavroll Ocher Ocerating Salaries were paid in the form of direct deposits to employees bank accounts biw eckly; the employees' portion of health insarance premium was withlheld from salaries and paid to the insurance provider at the same time when salaries were paid: the estimated personal income taxes were withheld and paid to the government agencies before the end of each monch. Employer's payroll taxes which inctuded the unemploymeat tax and social security tax were remitted to the government agencies immediately as they were recorded. Oher operating expenses which included utility. property taxes, freight-out, and ceher miscellaneous expenses were all paid in cash via online banking- 16. Company's merchandize purchases were as follows: Thtal Mewhandien The cormany's parchase agroememt specifies that the supptiers ship merchandizes and iend invoices, and the company inspects merchandizes after roceiving them and pay the invoices after inspection. The porchase amount listed incloded purchase price, tax, tariff, shipping, and insurance, net of purchase retums and discounts. 17. Payment for purchases were as follows: January parchases were folly paid by the end of March. The amount paid for February and March purchases was $99.900 and $7.000, respectively. The remaining unpaid purchases woald be paid in the future months in April and May. 18. Company paid in cash for the interest on the 2-year connmercial noto for the curnent quarter as well as the amount awed from last year. The note is not due antil June 30 . 2023. 19. The CFO also identificd the following areas that need to be adjasted: A. Employoe salary for the 4h week in March totaled $6,$00 and will be paid biweekly on April Sth through direct deposit. B. Goods ordered by cumpomers in the past year but sot deliverod were all delivered on time in January. However, the delivery of goods to some customers in the northeast region of the U.S. for sales made in March was delayed because of an unexpeeled snowsiorm. As a result, sales totaled 557,000 were not delivered and the merchandire remained in the company"'s warchouse. C. The depreciation for eqsipment and buildings totaled 56,800 for the quarter. D. The cast for the three-month informercial paid on February I reaires a proper adjustment. E. Health izcurance premium for Jamuary asd Febraary, totaled 52,300 , was prepaid last year. The bealth insurance permiam paid on March 1 coven a period of 12 months. Proper adjustments are required. F. Interest expense oe the new 3-year 12% loan borrowed in Jatwary needs to be recognized although not yet paid. G. Company's inventory system shows the total costs of inventory on hand at the end of the quarter, based on LIFO, totaled $145,000. The number has been confirmed by a companywide inventory count complcted at the end of March H. Company"s income tax rate is 28%. Balance Sheet for Great Adventares at 12/31/2021 Great Adventures, Inc. Balance Sheet (In USD 1,000)