Great Adventures Problem AP10-1 (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, 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 128,000 shares of common stock for $10 per share. November 16 Purchase 12,800 shares of its own common stock (i.e., treasury stock) for $29 per share. November 24 Resell 6,800 shares of treasury stock at $30 per share. December 1 Declare a cash dividend on its common stock of $14,200 ($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 $870,000 for construction of new cabins and other facilities. The entire expenditure is recorded in the Buildings account. General Journal General Requirement Trial Balance Income Statement Balance Sheet Ledger 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, 2022, in the 'Trial Balance' tab. 3. Prepare a multiple-step income statement for the period ended December 31, 2022, in the 'Income Statement' tab. 4. Prepare a classified balance sheet as of December 31, 2022, in the 'Balance Sheet' tab. 5. Record the closing entries in the 'General Journal' tab. No Date General Journal Debit Credit 1 Nov 05 Cash 1,280,000 128,000 Common Stock Additional Paid-in Capital 2 Nov 16 371,200 Treasury Stock Cash 371,200 3 Nov 24 Cash 204,000 Treasury Stock Additional Paid-in Capital 197,200 6,800 4 Dec 01 Dividends 14,200 Dividends Payable 14,200 5 Dec 20 Dividends Payable 14,200 Cash 14,200 6 Dec 30 870,000 Buildings Cash 870,000 7 Dec 31 Service Revenue Sales Revenue 8 Dec 31 Retained Earnings Cost of Goods Sold Depreciation Expense 8 Dec 31 Retained Earnings Cost of Goods Sold Depreciation Expense Supplies Expense Salaries Expense Bad Debt Expense Interest Expense Rent Expense Income Tax Expense 9 Dec 31 Retained Earnings 14,200 Dividends 14,200 GREAT ADVENTURES, INC. Income Statement For the Period Ended December 31, 2022 $ Oo o Oo o Net Sales Gross Profit $ 0 Operating Expense Oo oo 0 0 0 0 0 0 . 0 Total Operating Expenses Operating Income (Loss) 0 o oo 0 $ 0 Post-closing Dates: Nov 05 to: Dec GREAT ADVENTURES, INC. Balance Sheet December 31, 2022 Assets Liabilities Current Assets: Cash $ Current Liabilities: 300,770 0 $ 0 0 0 0 0 o od 0 0 0 0 0 0 0 0 Total Current Liabilities 0 0 0 0 0 300,770 Total Liabilities 0 Total Current Assets Long-term Assets: Buildings Stockholders' Equity 870,000 0 0 0 0 0 0 Total Stockholders' Equity 1,170,770 Total Liabilities and Stockholders' Equity Total assets $ $ 0 Great Adventures Problem AP10-1 (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, 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 128,000 shares of common stock for $10 per share. November 16 Purchase 12,800 shares of its own common stock (i.e., treasury stock) for $29 per share. November 24 Resell 6,800 shares of treasury stock at $30 per share. December 1 Declare a cash dividend on its common stock of $14,200 ($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 $870,000 for construction of new cabins and other facilities. The entire expenditure is recorded in the Buildings account. General Journal General Requirement Trial Balance Income Statement Balance Sheet Ledger 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, 2022, in the 'Trial Balance' tab. 3. Prepare a multiple-step income statement for the period ended December 31, 2022, in the 'Income Statement' tab. 4. Prepare a classified balance sheet as of December 31, 2022, in the 'Balance Sheet' tab. 5. Record the closing entries in the 'General Journal' tab. No Date General Journal Debit Credit 1 Nov 05 Cash 1,280,000 128,000 Common Stock Additional Paid-in Capital 2 Nov 16 371,200 Treasury Stock Cash 371,200 3 Nov 24 Cash 204,000 Treasury Stock Additional Paid-in Capital 197,200 6,800 4 Dec 01 Dividends 14,200 Dividends Payable 14,200 5 Dec 20 Dividends Payable 14,200 Cash 14,200 6 Dec 30 870,000 Buildings Cash 870,000 7 Dec 31 Service Revenue Sales Revenue 8 Dec 31 Retained Earnings Cost of Goods Sold Depreciation Expense 8 Dec 31 Retained Earnings Cost of Goods Sold Depreciation Expense Supplies Expense Salaries Expense Bad Debt Expense Interest Expense Rent Expense Income Tax Expense 9 Dec 31 Retained Earnings 14,200 Dividends 14,200 GREAT ADVENTURES, INC. Income Statement For the Period Ended December 31, 2022 $ Oo o Oo o Net Sales Gross Profit $ 0 Operating Expense Oo oo 0 0 0 0 0 0 . 0 Total Operating Expenses Operating Income (Loss) 0 o oo 0 $ 0 Post-closing Dates: Nov 05 to: Dec GREAT ADVENTURES, INC. Balance Sheet December 31, 2022 Assets Liabilities Current Assets: Cash $ Current Liabilities: 300,770 0 $ 0 0 0 0 0 o od 0 0 0 0 0 0 0 0 Total Current Liabilities 0 0 0 0 0 300,770 Total Liabilities 0 Total Current Assets Long-term Assets: Buildings Stockholders' Equity 870,000 0 0 0 0 0 0 Total Stockholders' Equity 1,170,770 Total Liabilities and Stockholders' Equity Total assets $ $ 0