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Not sure how to prepare closing entries I still need the accounts for expense and loss accounts as well Great Adventures Problem AP10-1 (GL) Tony
Not sure how to prepare closing entries
I still need the accounts for expense and loss accounts as well
Great Adventures Problem AP10-1 (GL) Tony and Suzie have purchased land for a new camp. Now they need money to build the cabins, dining facility, a ropes course, and an outdoor swimming pool. Tony and Suzie first checked with Summit Bank to see if they could borrow an additional $1 million, but unfortunately the bank turned them down as too risky. Undeterred, they promoted their idea to close friends they had made through the outdoor clinics and TEAM events. They decided to go ahead and sell shares of stock in the company to raise the additional funds for the camp. Great Adventures has authorized $1 par value common stock. When the company began on July 1, 2021, Tony and Suzie each purchased 10,000 shares (20,000 shares total) of $1 par value common stock at $1 per share. The following transactions affect stockholders' equity during the remainder of 2022: November 5 Issue an additional 132,000 shares of common stock for $10 per share. November 16 Purchase 13,200 shares of its own common stock (i.e., treasury stock) for $31 per share. November 24 Resell 7,200 shares of treasury stock at $32 per share. December 1 Declare a cash dividend on its common stock of $14,600 ($0.10 per share) to all stockholders of record on December 15. December 20 Pay the cash dividend declared on December 1. Pay $880,000 for construction of new cabins and other facilities. The entire expenditure is recorded in the December31 Buildings account. Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet 1. Record each of the transactions listed above in the 'General Journal' tab. Review the 'General Ledger' and the 'Trial Balance' tabs to see the effect of the transactions on the account balances. 2. Review the 'Trial Balance' as of December 31, 2022, in the 'Trial Balance' tab. 3. Prepare a multiple-step income statement for the period ended December 31, 2022, in the 'Income Statement' tab. 4. Prepare a classified balance sheet as of December 31, 2022, in the 'Balance Sheet' tab. 5. Record the closing entries in the 'General Journal' tab. Journal entry worksheet Ko @ @ @ @ 0 0 0 0 Prepare the closing entry for the expense and loss accounts. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31 Record entry Clear entry View general journal Nov 05 Cash 1,320,000 Common Stock Additional Paid-in Capital 132,000 1,188,000 Nov 16 409,200 Treasury Stock Cash 409,200 Nov 24 230,400 Cash Treasury Stock Additional Paid-in Capital 223,200 7,200 Dec 01 14,600 Dividends Dividends Payable 14,600 Dec 20 14,600 Dividends Payable Cash 14,600 Dec 30 880,000 Buildings Cash 880,000 Dec 31 Interest Revenue Service Revenue Sales Revenue Retained Earnings 440 46,100 152,000 Dec 31 No Transaction Recorded Dec 31 14,600 Retained Earnings Dividends 14 600 Unadjusted Dates: Nov 05 to: Dec 30 GREAT ADVENTURES, INC. Trial Balance December 30, 2022 Account Title Credit Debit 317,942 53,200 2,720 10,200 1,220 820,000 94,960 28,450 880,000 Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Prepaid Insurance Land Equipment Accumulated Depreciation Buildings Accounts Payable Interest Payable Income Tax Payable Deferred Revenue Notes Payable (Long-term) Notes Payable (Current) Contingent Liability Warranty Liability Common Stock Treasury Stock Additional Paid-in Capital Retained Earnings Dividends Service Revenue Sales Revenue 24,000 1,550 16,100 8,200 770,825 80,342 15,200 7,200 152,000 186,000 1,195,200 35,050 14,600 46,100 152,000 510 440 *Sales Discounts Interest Revenue Cost of Goods Sold Depreciation Expense *supplies Expense Salaries Expense *Bad Debt Expense Interest Expense * Rent Expense Income Tax Expense Insurance Expense Repairs and Maintenance Expense Warranty Expense Loss Total 40,100 18,850 1,300 32,000 3,200 10,775 4,000 16,100 7,300 720 7,200 15,200 2,535,377 $ 2,535,377Step by Step Solution
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