Answered step by step
Verified Expert Solution
Link Copied!

Question

...
1 Approved Answer

I have included what I have come up with journal entries but I am still missing 3 entries. Your help would be appreciated. - -

I have included what I have come up with journal entries but I am still missing 3 entries. Your help would be appreciated.
--- PROBLEM: ---
Tony's favorite memories of his childhood were the times he spent with his dad at camp. Tony was
daydreaming of those days a bit as he and Suzie jogged along a nature trall and came across a
wonderful piece of property for sale. He turned to Suzie and said, "I've always wanted to start a
camp where families could get away and spend some quality time together. If we just had the
money, I know this would be the perfect place," On november 1,2022, Great Adventures purchased
the land by issuing a $900,000,6%,10- year installment note to the seller. Payments of $9.992 are
required at the end of eacin month over the life of the 10- year loan. Each monthly payment of $
9.992 includes both interest expense and principal payments (1.e., reduction of the loan amount).
Late that night Tony exclaimed, "We now have land for our new camp; this has to be the best news
ever!" Suzie said, "There's
something else I need to tell you. I'm expecting!" They decided right then, if it was a boy, they
would name him Venture.
--- My JOURNAL ENTRIES so far ->
*2025-11-01
Land 900,000
Notes Payable 900,000
*2025-11-30
Interest Expense 4,500
Notes payable 5,492
Accounts payable 9992
*2025-12-31
Interest Expense 5,519
Notes payable 4,473
Accounts payable 9992
---BUT I NEED HELP WITH THESE ENTRIES: ---
* The 12 monthly payments in 2023(following year) will reduce the note's balance by an additional $68,424. Record the reclassification of this amount from long-term notes payable to current notes payable.
Note: Enter debits before credits.
*Prepare the closing entry for revenue accounts.
Note: Enter debits before credits.
*Prepare the closing entry for expense and loss accounts.
Note: Enter debits before credits.
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Principles Volume 1

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak

8th Canadian Edition

978-1119502425

Students also viewed these Accounting questions