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 wont 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 $720 each.

Jul.		17		Purchased 83 watches for $12,450 ($150 per watch) on account.
Jul.		31		Sold 82 watches for $59,040 cash.
Aug.		12		Purchased 62 watches for $9,920 ($160 per watch) cash.
Aug.		22		Sold 52 watches for $37,440 on account.
Sep.		19		Paid for watches purchased on July 17.
Sep.		27		Receive cash of $22,464 for watches sold on account on August 22.
Oct.		27		Purchased 135 watches for $22,950 ($170 per watch) cash.
Nov.		20		Sold 112 watches for $80,640 cash.
Dec.		4		Purchased 122 watches for $21,960 ($180 per watch) on account.
Dec.		8		Sold 62 watches for $44,640 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.

16. Record the closure of revenue accounts (Income summary is not an option on the pull down menu)

17. Record the closure of expense accounts (income summary is not an option on the pulldown menu)

NEED unadjusted, adjusted, post closing.

12 Dec 04 21,960 Inventory Accounts Payable 21,960 13 Dec 08 Accounts Receivable 44,640 Sales Revenue 44,640 14 Dec 08 Cost of Goods Sold 10,820 Inventory 10,820 15 Dec 31 Cost of Goods Sold 7,520 Inventory 7,520 16 Dec 31 Sales Revenue 221,760 Income Tax Payable 221,760 17 Dec 31 Income Tax Payable 50,360 Cost of Goods Sold 50,360 Income Statement For the Period Ended December 31, 2022 Revenues $ 0 0 0 0 Net Sales 0 0 Gross Profit $ 0 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 Oo 0 0 0 0 O 0 Total Current Liabilities 0 0 0 Total Current Assets 0 Total Liabilities 0 Long-term Assets: Stockholders' Equity 0 0 0 0 0 0 0 O Total Stockholders' Equity Total Liabilities and Stockholders' Equity $ Total Assets $ O 0