Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need help with the income statement and the balance sheet. I am not sure why my income statement displays zeroes for my revenue. Please

I need help with the income statement and the balance sheet. I am not sure why my income statement displays zeroes for my revenue. Please help ASAP. Thank you.

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed Tony and Suzle are ready to expand Great Adventures even further in 2025. Tony belleves that many groups in the community (for example, Boys and GIrls Clubs, church groups, cIvIc groups, and local businesses) would like to hold one-day outings for their members. Groups would engage in outdoor activities such as rock climbing, fishing, capture the flag, paintball, treasure hunts, scavenger hunts, nature hikes, and so on. The purpose of these one-day events would be for each member of the group to learn the Importance of TEAM (Together Everyone Achieves More). Tony knows that most people are not familiar with these types of activities, so to encourage business he allows groups to participate in the event before paying. He offers a 5% quick-payment discount to those that pay within 10 days after the event. He also guarantees that at least eight hours of outdoor activities will be provided or the customer will recelve a 20% discount. For the first six months of the year, the following activities occur for TEAM operations. January 24 Great Adventures purchases outdoor gear such as ropes, helmets, harnesses, compasses, and other miscellaneous equipment for $5,000 cash. February 25 Kendall's Boys and Girls Club participates in a one-day TEAM adventure. Normally, Tony would charge a group of this size $3,500, but he wants to encourage kids to exercise more and enjoy the outdoors so he charges the group only $3,000. Great Adventures provides these services on account. February 28 Great Adventures receives payment from the Boys and Girls Club for the full amount owed, less the 5\% quick-payment discount. March 19 Reynold's Management has its employees participate in a one-day TEAM adventure. Great Adventures provides services on account for $4,000, and Reynold's agrees to pay within 30 days. March 27 Great Adventures receives payment from Reynold's for the full amount owed, less the 5% quick-payment discount. April 7 Several men from the Elks Lodge decide to participate in a TEAM adventure. Great Adventures receives $7,500 immediately and the event is scheduled for the following week. April 14 The TEAM adventure is held for members of the Elks Lodge. April 30 Myers Manufacturing participates in a TEAM adventure. Great Adventures provides services on account for $6,000, and Myers agrees to pay within 30 days. May 31 Myers Manufacturing fails to pay the amount owed within the specified period and agrees to sign a three-month, 8% note receivable to replace the existing account receivable. June 15 Several MBA groups participate in TEAM adventures. Great Adventures provides services on account for $24,000 to these groups, with payment due in July. Required: Consider the following information as of June 30, 2025. Suzle estimates uncollectible accounts to be 10% of accounts recelvable from the MBA groups on June 15 . Record the adjusting entry for uncollectible accounts. Accrue one month of interest on the note recelvable from Myers Manufacturing. - Note payable is due in 2 years. \begin{tabular}{|c|c|c|c|c|c|} \hline & No & Date & Account Title & Debit & Credit \\ \hline \multirow[t]{2}{*}{>} & 1 & January 24 & Equipment & 5,000 & \\ \hline & & & Cash & & 5,000 \\ \hline \multirow[t]{2}{*}{>} & 2 & February 25 & Accounts Receivable & 3,000 & \\ \hline & & & Service Revenue & & 3,000 \\ \hline \multirow[t]{3}{*}{>} & 3 & February 28 & Cash & 2,850 & \\ \hline & & & Sales Discounts & 150 & \\ \hline & & & Accounts Receivable & & 3,000 \\ \hline \multirow[t]{2}{*}{>} & 4 & March 19 & Accounts Receivable & 4,000 & \\ \hline & & & Service Revenue & & 4,000 \\ \hline \multirow[t]{3}{*}{} & 5 & March 27 & Cash & 3,800 & \\ \hline & & & Sales Discounts & 200 & \\ \hline & & & Accounts Receivable & & 4,000 \\ \hline & 6 & April 07 & Cash & 7,500 & \\ \hline & & & Deferred Revenue & & 7,500 \\ \hline \multirow[t]{2}{*}{} & 7 & April 14 & Deferred Revenue & 7,500 & \\ \hline & & & Service Revenue & & 7,500 \\ \hline \multirow[t]{2}{*}{} & 8 & April 30 & Accounts Receivable & 6,000 & \\ \hline & & & Service Revenue & & 6,000 \\ \hline \multirow[t]{2}{*}{>} & 9 & May 31 & Notes Receivable & 6,000 & \\ \hline & & & Accounts Receivable & & 6,000 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|} \hline> & 10 & June 15 & Accounts Receivable & 24,000 & \\ \hline & & & Service Revenue & & 24,000 \\ \hline & 11 & June 30 & Bad Debt Expense & 2,400 & \\ \hline & & & Allowance for Uncollectible Accounts & & 2,400 \\ \hline \multirow[t]{2}{*}{>} & 12 & June 30 & Interest Receivable & 40 & \\ \hline & & & Interest Revenue & & 40 \\ \hline \multirow[t]{3}{*}{>} & 13 & June 30 & Service Revenue & 44,500 & \\ \hline & & & Interest Revenue & 40 & \\ \hline & & & Retained Earnings & & 44,540 \\ \hline \multirow[t]{3}{*}{>} & 14 & June 30 & Retained Earnings & 2,750 & \\ \hline & & & Sales Discounts & & 350 \\ \hline & & & Allowance for Uncollectible Accounts & & 2,400 \\ \hline \end{tabular} n & March 19 & & 4,000 & 7,000 \\ \hline & April 14 & & 7,500 & 14,500 \\ \hline & April 30 & & 6,000 & 20,500 \\ \hline 10 & June 15 & & 24,000 & 44,500 \\ \hline \end{tabular} \begin{tabular}{|r|c|c|r|r|} \hline \multicolumn{7}{|c|}{ Interest Revenue } \\ \hline No. & Date & Debit & Credit & \multicolumn{1}{c|}{ Balance } \\ \hline & & & & 0 \\ \hline 12 & June 30 & & 40 & 40 \\ \hline \end{tabular} \begin{tabular}{|r|c|c|c|r|} \multicolumn{7}{|c|}{ Sales Discounts } \\ \hline No. & Date & Debit & Credit & \multicolumn{1}{|c|}{ Balance } \\ \hline & & & & 0 \\ \hline 3 & February 28 & 150 & & 150 \\ \hline 5 & March 27 & 200 & & 350 \\ \hline \end{tabular} \begin{tabular}{|r|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Depreciation Expense } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & & & & 8,000 \\ \hline \end{tabular} \begin{tabular}{|r|c|c|c|c|} \multicolumn{7}{|c|}{ Supplies Expense } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & & & & 500 \\ \hline \end{tabular} \begin{tabular}{|r|c|c|c|c|} \multicolumn{5}{|c|}{ Salaries Expense } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & & & & 12,000 \\ \hline \end{tabular} \begin{tabular}{|r|c|c|c|r|} \multicolumn{5}{|c|}{ Bad Debt Expense } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & & & & 0 \\ \hline 11 & June 30 & 2,400 & & 2,400 \\ \hline \end{tabular} \begin{tabular}{|r|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Interest Expense } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & & & & 900 \\ \hline \end{tabular} \begin{tabular}{|r|c|c|c|c|} \multicolumn{5}{|c|}{ Rent Expense } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & & & & 1,200 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Insurance Expense } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & & & & 2,400 \\ \hline \end{tabular} Adjusted GREAT ADVENTURES, INCORPORATED Trial Balance June 30, 2025 \begin{tabular}{|c|c|c|} \hline Account Title & Debit & Credit \\ \hline ACash & 47,650 & \\ \hline AAccountsReceivable & 24,000 & \\ \hline AAllowanceforUncollectibleAccounts & & 2,400 \\ \hline Notes Receivable & 6,000 & \\ \hline AInterestReceivable & 40 & \\ \hline Prepaid Rent & 400 & \\ \hline Equipment & 45,000 & \\ \hline AAccumulatedDepreciation & & 16,000 \\ \hline AAccountsPayable & & 2,800 \\ \hline Interest Payable & & 1,650 \\ \hline ANotesPayable & & 30,000 \\ \hline ACommonStock & & 20,000 \\ \hline Retained Earnings & & 33,450 \\ \hline Service Revenue & & 44,500 \\ \hline Interest Revenue & & 40 \\ \hline Sales Discounts & 350 & \\ \hline Depreciation Expense & 8,000 & \\ \hline \$ Supplies Expense & 500 & \\ \hline Salaries Expense & 12,000 & \\ \hline Bad Debt Expense & 2,400 & \\ \hline AInterestExpense & 900 & \\ \hline Rent Expense & 1,200 & \\ \hline AInsuranceExpense & 2,400 & \\ \hline Total & 150,840 & 150,840 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|c|} \hline Adjusted & & & & & & \\ \hline \multicolumn{7}{|c|}{ GREAT ADVENTURES, INCORPORATED } \\ \hline \multicolumn{7}{|c|}{ Balance Sheet } \\ \hline \multicolumn{7}{|c|}{ June 30,2025} \\ \hline & Assets & & & Liabilities & & \\ \hline Current Asse & & & & Current Liabilities: & & \\ \hline Cash & & $ & 47,650 & Accounts Payable & S & 2,800 \\ \hline Accounts & eivable & & 24,000 & Interest Payable & & 1,650 \\ \hline Allowance & Uncollectible Accounts & & (2,400) & & & 0 \\ \hline Notes Re & able & t & 6,000 & Total Current Liabilities & & 4,450 \\ \hline Interest R & vable & & 40 & Notes Payable & + & 30,000 \\ \hline \multirow{2}{*}{\multicolumn{2}{|c|}{ Prepaid Rent }} & t & 400 & & & 0 \\ \hline & & & 0 & & & 0 \\ \hline \multicolumn{2}{|c|}{ Total Current Assets } & & 75,690 & Total Liabilities & & 34,450 \\ \hline \multicolumn{2}{|c|}{ Long-term Assets: } & & & Stockholders' Equity & & \\ \hline \multicolumn{2}{|c|}{ Equipment } & + & 45,000 & Common Stock & + & 20,000 \\ \hline \multicolumn{2}{|c|}{ Accumulated Depreciation } & + & (16,000) & Retained Earnings & & 50,240 \\ \hline & & 0 & & & 0 \\ \hline & & 0 & Total Stockholders' Equity & & 70,240 \\ \hline \multicolumn{2}{|l|}{ Total Assets } & $ & 104,690 & Total Liabilities and Stockholders' Equity & s & 104,690 \\ \hline \end{tabular} Income Statement Balance Sheet Tony and Suzle are ready to expand Great Adventures even further in 2025. Tony belleves that many groups in the community (for example, Boys and GIrls Clubs, church groups, cIvIc groups, and local businesses) would like to hold one-day outings for their members. Groups would engage in outdoor activities such as rock climbing, fishing, capture the flag, paintball, treasure hunts, scavenger hunts, nature hikes, and so on. The purpose of these one-day events would be for each member of the group to learn the Importance of TEAM (Together Everyone Achieves More). Tony knows that most people are not familiar with these types of activities, so to encourage business he allows groups to participate in the event before paying. He offers a 5% quick-payment discount to those that pay within 10 days after the event. He also guarantees that at least eight hours of outdoor activities will be provided or the customer will recelve a 20% discount. For the first six months of the year, the following activities occur for TEAM operations. January 24 Great Adventures purchases outdoor gear such as ropes, helmets, harnesses, compasses, and other miscellaneous equipment for $5,000 cash. February 25 Kendall's Boys and Girls Club participates in a one-day TEAM adventure. Normally, Tony would charge a group of this size $3,500, but he wants to encourage kids to exercise more and enjoy the outdoors so he charges the group only $3,000. Great Adventures provides these services on account. February 28 Great Adventures receives payment from the Boys and Girls Club for the full amount owed, less the 5\% quick-payment discount. March 19 Reynold's Management has its employees participate in a one-day TEAM adventure. Great Adventures provides services on account for $4,000, and Reynold's agrees to pay within 30 days. March 27 Great Adventures receives payment from Reynold's for the full amount owed, less the 5% quick-payment discount. April 7 Several men from the Elks Lodge decide to participate in a TEAM adventure. Great Adventures receives $7,500 immediately and the event is scheduled for the following week. April 14 The TEAM adventure is held for members of the Elks Lodge. April 30 Myers Manufacturing participates in a TEAM adventure. Great Adventures provides services on account for $6,000, and Myers agrees to pay within 30 days. May 31 Myers Manufacturing fails to pay the amount owed within the specified period and agrees to sign a three-month, 8% note receivable to replace the existing account receivable. June 15 Several MBA groups participate in TEAM adventures. Great Adventures provides services on account for $24,000 to these groups, with payment due in July. Required: Consider the following information as of June 30, 2025. Suzle estimates uncollectible accounts to be 10% of accounts recelvable from the MBA groups on June 15 . Record the adjusting entry for uncollectible accounts. Accrue one month of interest on the note recelvable from Myers Manufacturing. - Note payable is due in 2 years. \begin{tabular}{|c|c|c|c|c|c|} \hline & No & Date & Account Title & Debit & Credit \\ \hline \multirow[t]{2}{*}{>} & 1 & January 24 & Equipment & 5,000 & \\ \hline & & & Cash & & 5,000 \\ \hline \multirow[t]{2}{*}{>} & 2 & February 25 & Accounts Receivable & 3,000 & \\ \hline & & & Service Revenue & & 3,000 \\ \hline \multirow[t]{3}{*}{>} & 3 & February 28 & Cash & 2,850 & \\ \hline & & & Sales Discounts & 150 & \\ \hline & & & Accounts Receivable & & 3,000 \\ \hline \multirow[t]{2}{*}{>} & 4 & March 19 & Accounts Receivable & 4,000 & \\ \hline & & & Service Revenue & & 4,000 \\ \hline \multirow[t]{3}{*}{} & 5 & March 27 & Cash & 3,800 & \\ \hline & & & Sales Discounts & 200 & \\ \hline & & & Accounts Receivable & & 4,000 \\ \hline & 6 & April 07 & Cash & 7,500 & \\ \hline & & & Deferred Revenue & & 7,500 \\ \hline \multirow[t]{2}{*}{} & 7 & April 14 & Deferred Revenue & 7,500 & \\ \hline & & & Service Revenue & & 7,500 \\ \hline \multirow[t]{2}{*}{} & 8 & April 30 & Accounts Receivable & 6,000 & \\ \hline & & & Service Revenue & & 6,000 \\ \hline \multirow[t]{2}{*}{>} & 9 & May 31 & Notes Receivable & 6,000 & \\ \hline & & & Accounts Receivable & & 6,000 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|} \hline> & 10 & June 15 & Accounts Receivable & 24,000 & \\ \hline & & & Service Revenue & & 24,000 \\ \hline & 11 & June 30 & Bad Debt Expense & 2,400 & \\ \hline & & & Allowance for Uncollectible Accounts & & 2,400 \\ \hline \multirow[t]{2}{*}{>} & 12 & June 30 & Interest Receivable & 40 & \\ \hline & & & Interest Revenue & & 40 \\ \hline \multirow[t]{3}{*}{>} & 13 & June 30 & Service Revenue & 44,500 & \\ \hline & & & Interest Revenue & 40 & \\ \hline & & & Retained Earnings & & 44,540 \\ \hline \multirow[t]{3}{*}{>} & 14 & June 30 & Retained Earnings & 2,750 & \\ \hline & & & Sales Discounts & & 350 \\ \hline & & & Allowance for Uncollectible Accounts & & 2,400 \\ \hline \end{tabular} n & March 19 & & 4,000 & 7,000 \\ \hline & April 14 & & 7,500 & 14,500 \\ \hline & April 30 & & 6,000 & 20,500 \\ \hline 10 & June 15 & & 24,000 & 44,500 \\ \hline \end{tabular} \begin{tabular}{|r|c|c|r|r|} \hline \multicolumn{7}{|c|}{ Interest Revenue } \\ \hline No. & Date & Debit & Credit & \multicolumn{1}{c|}{ Balance } \\ \hline & & & & 0 \\ \hline 12 & June 30 & & 40 & 40 \\ \hline \end{tabular} \begin{tabular}{|r|c|c|c|r|} \multicolumn{7}{|c|}{ Sales Discounts } \\ \hline No. & Date & Debit & Credit & \multicolumn{1}{|c|}{ Balance } \\ \hline & & & & 0 \\ \hline 3 & February 28 & 150 & & 150 \\ \hline 5 & March 27 & 200 & & 350 \\ \hline \end{tabular} \begin{tabular}{|r|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Depreciation Expense } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & & & & 8,000 \\ \hline \end{tabular} \begin{tabular}{|r|c|c|c|c|} \multicolumn{7}{|c|}{ Supplies Expense } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & & & & 500 \\ \hline \end{tabular} \begin{tabular}{|r|c|c|c|c|} \multicolumn{5}{|c|}{ Salaries Expense } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & & & & 12,000 \\ \hline \end{tabular} \begin{tabular}{|r|c|c|c|r|} \multicolumn{5}{|c|}{ Bad Debt Expense } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & & & & 0 \\ \hline 11 & June 30 & 2,400 & & 2,400 \\ \hline \end{tabular} \begin{tabular}{|r|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Interest Expense } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & & & & 900 \\ \hline \end{tabular} \begin{tabular}{|r|c|c|c|c|} \multicolumn{5}{|c|}{ Rent Expense } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & & & & 1,200 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Insurance Expense } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & & & & 2,400 \\ \hline \end{tabular} Adjusted GREAT ADVENTURES, INCORPORATED Trial Balance June 30, 2025 \begin{tabular}{|c|c|c|} \hline Account Title & Debit & Credit \\ \hline ACash & 47,650 & \\ \hline AAccountsReceivable & 24,000 & \\ \hline AAllowanceforUncollectibleAccounts & & 2,400 \\ \hline Notes Receivable & 6,000 & \\ \hline AInterestReceivable & 40 & \\ \hline Prepaid Rent & 400 & \\ \hline Equipment & 45,000 & \\ \hline AAccumulatedDepreciation & & 16,000 \\ \hline AAccountsPayable & & 2,800 \\ \hline Interest Payable & & 1,650 \\ \hline ANotesPayable & & 30,000 \\ \hline ACommonStock & & 20,000 \\ \hline Retained Earnings & & 33,450 \\ \hline Service Revenue & & 44,500 \\ \hline Interest Revenue & & 40 \\ \hline Sales Discounts & 350 & \\ \hline Depreciation Expense & 8,000 & \\ \hline \$ Supplies Expense & 500 & \\ \hline Salaries Expense & 12,000 & \\ \hline Bad Debt Expense & 2,400 & \\ \hline AInterestExpense & 900 & \\ \hline Rent Expense & 1,200 & \\ \hline AInsuranceExpense & 2,400 & \\ \hline Total & 150,840 & 150,840 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|c|} \hline Adjusted & & & & & & \\ \hline \multicolumn{7}{|c|}{ GREAT ADVENTURES, INCORPORATED } \\ \hline \multicolumn{7}{|c|}{ Balance Sheet } \\ \hline \multicolumn{7}{|c|}{ June 30,2025} \\ \hline & Assets & & & Liabilities & & \\ \hline Current Asse & & & & Current Liabilities: & & \\ \hline Cash & & $ & 47,650 & Accounts Payable & S & 2,800 \\ \hline Accounts & eivable & & 24,000 & Interest Payable & & 1,650 \\ \hline Allowance & Uncollectible Accounts & & (2,400) & & & 0 \\ \hline Notes Re & able & t & 6,000 & Total Current Liabilities & & 4,450 \\ \hline Interest R & vable & & 40 & Notes Payable & + & 30,000 \\ \hline \multirow{2}{*}{\multicolumn{2}{|c|}{ Prepaid Rent }} & t & 400 & & & 0 \\ \hline & & & 0 & & & 0 \\ \hline \multicolumn{2}{|c|}{ Total Current Assets } & & 75,690 & Total Liabilities & & 34,450 \\ \hline \multicolumn{2}{|c|}{ Long-term Assets: } & & & Stockholders' Equity & & \\ \hline \multicolumn{2}{|c|}{ Equipment } & + & 45,000 & Common Stock & + & 20,000 \\ \hline \multicolumn{2}{|c|}{ Accumulated Depreciation } & + & (16,000) & Retained Earnings & & 50,240 \\ \hline & & 0 & & & 0 \\ \hline & & 0 & Total Stockholders' Equity & & 70,240 \\ \hline \multicolumn{2}{|l|}{ Total Assets } & $ & 104,690 & Total Liabilities and Stockholders' Equity & s & 104,690 \\ \hline \end{tabular} Income Statement Balance Sheet

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

The Practitioners Guide To Edp Auditing

Authors: Jack Mullen

1st Edition

0136912621, 978-0136912620

More Books

Students also viewed these Accounting questions

Question

=+ (b) Show that X' and Y' are dependent but uncorrelated.

Answered: 1 week ago

Question

2. What are your challenges in the creative process?

Answered: 1 week ago