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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 $780 each. Jul. 17 Purchased 92 watches for $13,800 ($150 per watch) on account. Jul. 31 Sold 88 watches for $68,640 cash. Aug. 12 Purchased 68 watches for $10,880 ($160 per watch) cash. Aug. 22 Sold 58 watches for $45, 240 on account. Sep. 19 Paid for watches purchased on July 17. Sep. 27 Receive cash of $27,144 for watches sold on account on August 22. Oct. 27 Purchased 150 watches for $25,500 ($170 per watch) cash. Nov. 20 Sold 118 watches for $92,040 cash. Dec. 4 Purchased 128 watches for $23,040 ($180 per watch) on account. Dec. 8 Sold 68 watches for $53,040 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 1. Record each of the transactions listed above in the 'General Journal' tab, assuming Suzie uses FIFO to account for inventory. Review the "General Ledger' and the 'Trial Balance' tabs to see the effect of the transactions on the account balances. 2. Record adjusting entries on December 31, 2022, in the 'General Journal' tab. 3. Review the adjusted 'Trial Balance' as of December 31, 2022, in the 'Trial Balance' tab. 4. Prepare a multiple-step income statement for the period ended December 31, 2022, in the 'Income Statement' tab. 5. Prepare a classified balance sheet as of December 31, 2022, in the 'Balance Sheet' tab. 6. Record the closing entries in the 'General Journal' tab. Requirement General Journal > Requirement General Journal General Trial Balance Income Statement Balance Sheet Prepare the journal entries for transactions. (ar no entry is required for a particular transaction/event, select "No Journal Entry Required in the first account field.) View transactionist View journal entry workahan Ne Gansel Journal Debi Credit Date Jul 17 1 13,800 Accounts Payable 13.800 2 31 Cash 68,640 Inventory 68,640 2 Jul 31 68,640 68,640 N Aug 12 10,880 Inventory Cash 10,880 5 Aug 22 Account Receivable 45,240 Sales Revenue 45,340 G Aug 22 45,240 Accounts Receivable Sales Revenue 45,240 M Sep 19 13,000 Accounts Payable Cash 13,000 8 Sep 27 Cash 27,144 Accounts Rechable 27,144 M 9 Oct 27 25,500 Inventory Cash 25,500 10 Nov 20 Cash 92,040 Inventory 92,040 11 Nov 20 $2.040 | Cash Inventory 92,040 12 Dec 04 23,040 Inventory Accounts Payable 23,040 13 Dec 05 53,040 Account Receivable Sales Revenue 53,040 Dec 08 Cash 53,040 Inventory 53,040 15 Dec 31 No Journal Entry Required fachowyway to the war. The wid, adju, orci tract, or your C C GO BE ORD LEPT BER TNO BE 1 101 THEN T 1 IRENE DAN GRO 111 30 131 PH NO ORBI Gel LRT DRE 13 ORE YER Our TO ORO 2290 BE Die C Die C NE LRT TO Die C C LRT 1 LIIT TV TH DO 20 Credit C ** LRT TO CUT M Die C Di Credit Be Credit PS JLR GOT LENT 0 20 10 212 NO C LRT 16 al C C RE LRT 1 LE LE C C 200 al C C F JLRT 2. RE C MI Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Notice the dropdown below that gives the options to select the unadjusted, adjusted or post-closing trial balance. The option you choose will be the values used to populate the income statement and balance sheet tabs. Unadjusted GREAT ADVENTURES, INC. Trial Balance December 08, 2022 Account Title Debit Credit S 388,554 154,376 3,800 232,540 59,000 Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Equipment Accumulated Depreciation Accounts Payable Interest Payable Income Tax Payable Notes Payable Common Stock Retained Earnings Service Revenue Sales Revenue Sales Discounts Interest Revenue Depreciation Expense Supplies Expense Salaries Expense Bad Debt Expense Interest Expense Rent Expense Income Tax Expense Insurance Expense Total 31,000 28,640 1,450 15,900 58,000 26,090 36,950 51,500 212,260 490 190 23,000 1,900 38,000 3,800 3,200 3,800 15,900 6,200 698,220 $ $ 698,320 Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Choose the appropriate accounts to complete the company's income statement. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection. Unadjusted GREAT ADVENTURES, INC. Income Statement For the Period Ended December 31, 2022 Revenues Sales Revenue $ 212,260 0 0 0 Net Sales 212,260 0 Gross Profit $ 212,260 Operating Expense. 0 0 0 0 0 0 0 Total Operating Expenses Operating Income (Loss) 0 212,260 0 0 Income Before Income Taxes 212,260 0 212,260 Net Income $ Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Prepare a classified balance sheet as of December 31, 2022. Choose the appropriate accounts to complete the company's balance shee The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection. Unadjusted GREAT ADVENTURES, INC. Balance Sheet December 31, 2022 Assets Liabilities Current Liabilities: Current Assets: Cash $ $ 0 0 Accounts Receivable Inventory 388,554 154,376 (232,540) 0 0 0 0 Total Current Liabilities 0 0 0 310,390 0 Total Current Assets Long-term Assets Total Liabilities Stockholders' Equity 0 0 0 0 0 0 0 0 Total Stockholders' Equity 310,390 Total Liabilities and Stockholders' Equity Total Assets $ $ 0 Requirement General Journal General Trial Balance Income Statement Balance Sheet Prepare the journal entries for transactions. (ar no entry is required for a particular transaction/event, select "No Journal Entry Required in the first account field.) View transactionist View journal entry workahan Ne Gansel Journal Debi Credit Date Jul 17 1 13,800 Accounts Payable 13.800 2 31 Cash 68,640 Inventory 68,640 2 Jul 31 68,640 68,640 N Aug 12 10,880 Inventory Cash 10,880 5 Aug 22 Account Receivable 45,240 Sales Revenue 45,340 G Aug 22 45,240 Accounts Receivable Sales Revenue 45,240 M Sep 19 13,000 Accounts Payable Cash 13,000 8 Sep 27 Cash 27,144 Accounts Rechable 27,144 M 9 Oct 27 25,500 Inventory Cash 25,500 10 Nov 20 Cash 92,040 Inventory 92,040 11 Nov 20 $2.040 | Cash Inventory 92,040 12 Dec 04 23,040 Inventory Accounts Payable 23,040 13 Dec 05 53,040 Account Receivable Sales Revenue 53,040 Dec 08 Cash 53,040 Inventory 53,040 15 Dec 31 No Journal Entry Required fachowyway to the war. The wid, adju, orci tract, or your C C GO BE ORD LEPT BER TNO BE 1 101 THEN T 1 IRENE DAN GRO 111 30 131 PH NO ORBI Gel LRT DRE 13 ORE YER Our TO ORO 2290 BE Die C Die C NE LRT TO Die C C LRT 1 LIIT TV TH DO 20 Credit C ** LRT TO CUT M Die C Di Credit Be Credit PS JLR GOT LENT 0 20 10 212 NO C LRT 16 al C C RE LRT 1 LE LE C C 200 al C C F JLRT 2. RE C MI Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Notice the dropdown below that gives the options to select the unadjusted, adjusted or post-closing trial balance. The option you choose will be the values used to populate the income statement and balance sheet tabs. Unadjusted GREAT ADVENTURES, INC. Trial Balance December 08, 2022 Account Title Debit Credit S 388,554 154,376 3,800 232,540 59,000 Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Equipment Accumulated Depreciation Accounts Payable Interest Payable Income Tax Payable Notes Payable Common Stock Retained Earnings Service Revenue Sales Revenue Sales Discounts Interest Revenue Depreciation Expense Supplies Expense Salaries Expense Bad Debt Expense Interest Expense Rent Expense Income Tax Expense Insurance Expense Total 31,000 28,640 1,450 15,900 58,000 26,090 36,950 51,500 212,260 490 190 23,000 1,900 38,000 3,800 3,200 3,800 15,900 6,200 698,220 $ $ 698,320 Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Choose the appropriate accounts to complete the company's income statement. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection. Unadjusted GREAT ADVENTURES, INC. Income Statement For the Period Ended December 31, 2022 Revenues Sales Revenue $ 212,260 0 0 0 Net Sales 212,260 0 Gross Profit $ 212,260 Operating Expense. 0 0 0 0 0 0 0 Total Operating Expenses Operating Income (Loss) 0 212,260 0 0 Income Before Income Taxes 212,260 0 212,260 Net Income $ Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Prepare a classified balance sheet as of December 31, 2022. Choose the appropriate accounts to complete the company's balance shee The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection. Unadjusted GREAT ADVENTURES, INC. Balance Sheet December 31, 2022 Assets Liabilities Current Liabilities: Current Assets: Cash $ $ 0 0 Accounts Receivable Inventory 388,554 154,376 (232,540) 0 0 0 0 Total Current Liabilities 0 0 0 310,390 0 Total Current Assets Long-term Assets Total Liabilities Stockholders' Equity 0 0 0 0 0 0 0 0 Total Stockholders' Equity 310,390 Total Liabilities and Stockholders' Equity Total Assets $ $ 0

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