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 multiuse (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 second half of 2022. All watches are sold for $760 each. Jul. Jul. Aug. Aug. Sep. Sep. Oct. Nov. Dec. Dec. 17 Purchased 89 watches for $13, 350 ($150 per watch) on account. 31 Sold 86 watches for $65, 360 cash. 12 Purchased 66 watches for $10, 560 ($160 per watch) cash. 22 Sold 56 watches for $42, 560 on account. 19 Paid for watches purchased on July 17. 27 Receive cash of $25, 536 for watches sold on account on August 22. 27 Purchased 145 watches for $24, 650 ($170 per watch) cash. 20 Sold 116 watches for $88, 160 cash. 4 Purchased 126 watches for $22, 680 ($180 per watch) on account. 8 Sold 66 watches for $50, 160 on account. Late in December, the next generation of multiuse (MU II) watches is released. In addition to all of the features of the MU watch, the MU II 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 Prepare the journal entries for transactions. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Record the closure of revenue accounts. Note: Enter debits before credits. Credit Date Dec 31 General Journal Sales Revenue Service Revenue Interest Revenue Debit 246,240 51,000 185 Record entry Clear entry View general journal 000: No Journal Entry Required 100: Cash 120: Accounts Receivable 121: Allowance for Uncollectible Account 125: Notes Receivable 130: Interest Receivable 135: Inventory 136: Purchases 137: Purchase Returns 138: Purchase Discounts 139: Freight-In 140: Supplies 145: Prepaid Rent 146: Prepaid Insurance 147: Prepaid Advertising 160: Land 165: Equipment 166: Accumulated Depreciation 167: Buildings 201: Accounts Payable 205: Salaries Payable 210: Utilities Payable 215: Interest Payable 220: Income Tax Payable 230: Deferred Revenue 235: Notes Payable 310: Common Stock 330: Retained Earnings 400: Service Revenue 405: Sales Revenue 406: Sales Discounts 407: Sales Returns 408: Sales Allowances 410: Interest Revenue 420: Gain 500: Cost of Goods Sold 505: Advertising Expense 510: Depreciation Expense 515: Supplies Expense 520: Salaries Expense 525: Entertainment Expense 530: Utilities Expense 535: Bad Debt Expense 540: Interest Expense 545: Rent Expense 550: Income Tax Expense 555: Insurance Expense 560: Legal Fees Expense 565: Service Fee Expense 570: Repairs and Maintenance Expense 575: Delivery Expense 580: Postage Expense Journal entry worksheet 1 10 11 12 13 14 15 16 17 Record the closure of expense accounts. Note: Enter debits before credits. Debit Credit Date Dec 31 General Journal Cost of Goods Sold Rent Expense Purchase Discounts Record entry Clear entry View general journal GREAT ADVENTURES, INC. Balance Sheet December 31, 2022 Assets Liabilities 28,080 Current Assets: Cash Accounts Receivable Inventory ttt Current Liabilities: 167,656 Accounts Payable 104,184 10,200 0 0 0 0 0 Total Current Liabilities 28,080 0 0 28,080 Total Current Assets Long-term Assets 282,040 Total Liabilities Stockholders' Equity 0 Common Stock 0 Retained Earnings 0 0 Total Stockholders' Equity 282,040 Total Liabilities and Stockholders' Equity 25,655 (40,620) (14,965) 13,115 Total Assets $ $ Post-closing GREAT ADVENTURES, INC. Income Statement For the Period Ended December 31, 2022 Revenues Sales Revenue Sales Discounts $ $ 0 (480) 0 0 (480) 61,040 T Net Sales Cost of Goods Sold Gross Profit Operating Expense: $ (61,520) 0 0 0 0 0 0 0 0 Total Operating Expenses Operating Income (Loss) (61,520) 0 0 (61,520) 15,800 (77,320) Income Before Income Taxes Income Tax Expense $