Great Adventures Continuing Case (GL) 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, 2024, 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 2025 : November 5 Issue an additional 100,000 shares of common stock for $10 per share. Novenber 16 Purchase 10,000 shares of its own comson stock (1.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 Decenber 15 . December 20 Pay the cash dividend declared on December 1. December 30 Pay $800,000 for construction of new cabins and other facilities. The entire expenditure is recorded in the buildings account. 1. Record each of the transactions listed above in the 'General Journal' tab. Review the 'General Ledger' and the 'Trial Balance' tabs to see the effect of the transactions on the account balances. 2. Review the 'Trial Balance' as of December 31, 2025, in the 'Trial Balance' tab. 3. Prepare a multiple-step income statement for the period ended December 31, 2025, in the 'Income Statement' tab. 4. Prepare a classified balance sheet as of December 31, 2025, in the 'Balance Sheet' tab. 5. Record the closing entries in the 'General Journal' tab. Journal entry worksheet 7 8 9 10 Record the issue of additional 100,000 shares of common stock for $10 per share. Note: Enter debits before credits. Journal entry worksheet Record the purchase of 10,000 shares of its own common stock (i.e., treasury stock) for $15 per share. Note: Enter debits before credits. Journal entry worksheet Record the resale of 4,000 shares of treasury stock at $16 per share. Note: Enter debits before credits. Journal entry worksheet Record the declaration of $11,400 ( $0.10 per share) cash dividend on its common stock to all stockholders of record on December 15 . Note: Enter debits before credits. Journal entry worksheet Record the entry on December 15 , the date of record. Note: Enter debits before credits. Journal entry worksheet Record the payment of cash dividend declared on December 1. Note: Enter debits before credits. Journal entry worksheet Record the payment of $800,000 for construction of new cabins and other facilities. The entire expenditure is recorded in the Buildings account. Note: Enter debits before credits. Journal entry worksheet Record the entry to close the revenue accounts. Note: Enter debits before credits. Journal entry worksheet Record the entry to close the expense accounts. Note: Enter debits before credits. Journal entry worksheet Record the entry to close the dividends account. Note: Enter debits before credits
