Great Adventures Problem AP6-1 (GL) [The following information applies to the questions displayed below.) Now that operations for outdoor clinics and TEAM events are running smoothly, Suzie thinks of another area for business expansion. She notices that a few clinic participants wear multluse (MU) watches, Beyond the normal timekeeping features of most watches, MU watches are able to report temperature, altitude, and barometric pressure. MU watches are waterproof , so moisture from Kayaking, rain, fishing, or even diving up to 100 feet won't damage them. Suzie decides to have MU watches available for sale at the start of each clinic. The following transactions relate to purchases and sales of watches during the sqcond half of 2022. All watches are sold for Jul. 17 Purchased 98 watches for $14,700 ($150 per vatah) on account. Jul. 31 Sold 92 watches for $75,440 cash. Aug. 12 Purchased 72 watches for $11,520 ($160 per watch) cash. Aug. 22 Sold 62 watches for $50,840 on account. Sep. 19 Paid for watches purchased on July 17. Sep. 27 Receive cash of $30,504 for watches sold on account on August 22, Oct. 27 Purchased 160 watches for $27,200 ($170 per watch) can Nov. 20 Sold 122 watches for 0100, 040 cach Dec. 4 Purchased 132 watches for $23,760 ($100 per watch) on account Dec. 8 Sold 72 watches for $59.040 on secount. Late in December, the next generation of multluse (MU II) watches is released. In addition to all of the features of the MU watch, the MU I watches are equipped with a global positioning system (GPS) and have the ability to download and play songs and videos off the Internet. The demand for the original MU watches is greatly reduced. As of December 31, the estimated net realizable value of MU watches is only $100 per watch Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet 1 Jul 17 14,700 Inventory Accounts Payable 14,700 > 2 Jul 31 75,440 Cash Sales Revenue 75,440 3 Jul 31 > 13,800 Cost of Goods Sold Inventory 13,800 4 Aug 12 11,520 Inventory Cash >> 11,520 5 Aug 22 50,840 Accounts Receivable Sales Revenue >> 50,840 6 Aug 22 Cost of Goods Sold Inventory 7 Sep 19 Accounts Payable Cash 14,700 14,700 8 Sep 27 30,504 Cash Accounts Receivable 30,504 9 Oct 27 27.200 Inventory Cash 27,200 10 Nov 20 Cash 100,040 Sales Revenue 100,040 11 Nov 20 Cost of Goods Sold >> Inventory 12 Dec 04 23,760 Inventory Accounts Payable >> 23,760 13 Dec 08 59,040 Accounts Receivable Sales Revenue 59,040 14 Dec 08 Cost of Goods Sold Inventory 15 Dec 31 Cost of Goods Sold Inventory 16 Dec 31 Sales Revenue Service Revenue Interest Revenue Retained Earnings 17 Dec 31 Retained Earnings 17 Dec 31 Retained Earnings Cost of Goods Sold Depreciation Expense Supplies Expense Salaries Expense Bad Debt Expense Interest Expense Rent Expense Income Tax Expense Insurance Expense GREAT ADVENTURES, INC. Income Statement For the Period Ended December 31, 2022 Revenues $ $ 0 0 0 0 Net Sales 0 0 $ 0 Gross Profit Operating Expense: 0 0 0 0 0 0 0 0 Total Operating Expenses Operating Income (Loss) 0 0 0 Income Before Income Taxes 0 0 $ 0 GREAT ADVENTURES, INC. Balance Sheet December 31, 2022 Assets Liabilities Current Assets: Current Liabilities: $ 0 $ 0 0 0 0 0 0 0 Total Current Liabilities Oolo olo 0 Total Current Assets Long-term Assets Total Liabilities Stockholders' Equity O O OOO OOOolo Total Stockholders' Equity Total Liabilities and Stockholders' Equity Total Assets
