Great Adventures Inc - continued Tony and Suzie, college classmates, began their new business shortly after graduation Refer to the first financial statements project to review the transactions between July 1 and December 31 prior to any adjusting entries. Now that all the transactions have been recorded for each month, it is time to prepare adjusting entries for year-end. Adjusting entries are required to ensure that both revenues and expenses are recognized in the correct year, and to ensure that any items not yet recorded for the year have been included. Adjusting Journal Entries: The following information relates to year-end adjusting entries as of December 31, 2024: Depreciation of the mountain bikes purchased on July 8 and kayaks purchased on August 4th totals $8,000. . 6 . . Six months of the one-year insurance policy purchased on July 1 has expired. Four months of the one-year rental agreement purchased on September 1 has expired Of the $1,800 of office supplies purchased on July 4, $300 remains Interest expense on the $30,000 loan obtained from the city council on August 1 should be recorded. Of the $2,800 of racing supplies purchased on December 12, $200 remains Suzie calculates that the company owes $14,000 in income taxes. Requirements for continuing the project by preparing adjusting entries and financial statements. Review the unadjusted trial balance at the end of these instructions. Correct your T-accounts and trial balance from part 1.** **IF you did not submit part 1 or you had more errors than you can reasonably find by continuing your own part 1, open the Great Adventures Exel Workbook PART 2 ONLY. Using the trial balance at the end of these instructions, enter the balance into your T-accounts as a herinning balance

Great Adventures Inc - continued and December 31 prior to any adputing catries. Now that al the tramsactions have bece recordod for each moeth, it is time to parpare and openves are recopritiod in the conect year, and to cmore that any itam not yet recerded for the year brve bece inchaled. Adjusting Journal Entries: The folowing ifformation relates to year -end adjusting cotries as of December 31,2024 - Deprecintioe of the mocostaia bikes purchased oe Joly 8 and kayals purthated cen Angant 4a totals 58,000 - Sax moeths of the ooeyear anazance policy perchued on luly 1 has expied - Foer morith of the cee-year rental aprecuncri porchaved on September 1 has expired - Or the $1,800 of cefise supties purchased ce July 4,5300 romains. - Intarest apense on the $30,000 low obeained froen the cify councl on Aurust 1 should be rocorded - Or the $2,800 of raving supples parchased on Docember 12, $200 remins - Suric calculates that the company owes $14,000 in incoene taxes Requiremeats for continuing the project by preparing adjusting entries and financial statements. - Review the unadfunted triv bulmece at the end of these instrections Conect your T-accounts and trial balance from part 1 . " II you did not sethent part 1 or you had more cruors than you can teasonably find by cootiming your own part 1. Open the Great Adventires Exd Weakbook PART 2 ONLY Using the triv balance at the end of these instructions, enter the balance into you T-accounts as Requirements for continuing the project by preparing adjusting entries and financial statements. - Review the unadjusted trial balance at the end of these instructions. Correct your T-accounts and trial balance from part 1 *. *IF you did not submit part 1 or you had more errors than you can reasonably find by continuing your own part 1 , open the Great Adventures Exel Workbook PART 2 ONLY. Using the trial balance at the end of these instructions, enter the balance into your T-accounts as a beginning balance. - Continuing the General Journal, record the adjusting entries (a-g) as of December 31,2024 . - Post the adjusting entries to your updated T-accounts. Update the ending balance in each account - Prepare an adjusted trial balance as of December 31,2024. You may simply update your first trial balance. Be sure to update amounts. If your total debits do not equal total credits, search for your error. - Insert a new worksheet in your Excel work book One each for the three financial statements prepared in the next step. (See the handout - Adding a Worksheet to Excel' for step-by-step instructions.) - Prepare the income statement, statement of retained earrings (just the one column from the statement of stockholders' equity), and a classified balance for Great Adventures for the year ending December 31,2024. The balance sheet should be a classified balance sheet. (If you prefer to prepare the full statement of stockholders equity, that is allowed) The Unadjusted Trial Balance is posted below The Unadjusted Trial Balance is posted below. \begin{tabular}{|c|c|c|} \hline \multicolumn{2}{|c|}{ Great Adventures Inc. } & \\ \hline \multicolumn{2}{|c|}{ Unadjusted Trial Balance } & \\ \hline \multicolumn{2}{|c|}{ As of December 31, 2024} & \\ \hline Account Name & Dr. & Cr. \\ \hline Cash & 64,200 & \\ \hline Accounts Receivable & - & \\ \hline Prepaid Insurance & 4,800 & \\ \hline Prepaid Rent & 2,400 & \\ \hline Supplies (racing) & 2,800 & \\ \hline Supplies (office) & 1,800 & \\ \hline Equipment (bikes) & 12,000 & \\ \hline Equipment (kayaks) & 28,000 & \\ \hline Accumulated Depreciation & - & \\ \hline Accounts Payable & & 2,800 \\ \hline Interest Payable & - & 1 \\ \hline \begin{tabular}{|l|} Income Tax Payable \\ \end{tabular} & & - \\ \hline Deferred Revenue & & - \\ \hline Notes Payable & & 30,000 \\ \hline Common Stock & & 20,000 \\ \hline Retained Earnings & & - \\ \hline Dividends & 4,000 & \\ \hline Service Revenue (clinic) & & 52,900 \\ \hline Service Revenue (racing) & & 20,000 \\ \hline Advertising Expense & 1,000 & \\ \hline Depreciation Expense & - & \\ \hline Income Tax Expense & - & \\ \hline Insurance Expense & - & \\ \hline Interest Expense & - & \\ \hline Legal Fees Expense & 1,500 & \\ \hline Miscellaneous Expense & 1,200 & \\ \hline Rent Expense & - & \\ \hline Salaries Expense & 2,000 & \\ \hline Supplies Expense (office) & - & \\ \hline Supplies Expense (racing) & - & \\ \hline \end{tabular} \begin{tabular}{|l|c|c|} \hline Retained Earnings & & \\ \hline Dividends & 4,000 & \\ \hline Service Revenue (clinic) & & 52,900 \\ \hline Service Revenue (racing) & & 20,000 \\ \hline Advertising Expense & 1,000 & \\ \hline Depreciation Expense & & \\ \hline Income Tax Expense & & \\ \hline Insurance Expense & & \\ \hline Interest Expense & 1,500 & \\ \hline Legal Fees Expense & 1,200 & \\ \hline Miscellaneous Expense & - & \\ \hline Rent Expense & 2,000 & \\ \hline Salaries Expense & & \\ \hline Supplies Expense (office) & & \\ \hline Supplies Expense (racing) & & \\ \hline & $125,700 & $125,700 \\ \hline Total & & \\ \hline \end{tabular}