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 2025. All watches are sold for $820 each. July 17 July 31 August 12 August 22 Purchased 98 watches for $14,700 ($150 per watch) on account. Sold 72 watches for $59,040 cash. Purchased 72 watches for $11,520 ($160 per watch) cash. Sold 62 watches for $50,840 on account. September 19 Paid for watches purchased on July 17. September 27 Receive cash of $30,504 for watches sold on account on August 22. Purchased 160 watches for $26,240 ($164 per watch) cash. October 27 November 20 December 4 December 8 Sold 142 watches for $116,440 cash. Purchased 132 watches for $22,968 ($174 per watch) on account. Sold 72 watches for $59,040 on account. Great Adventures, Incorporated Trial Balance December 31, 2025 Debit $ 37,250 40,000 Credit $ 4,000 0 61,000 Accounts Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Equipment Accumulated Depreciation Accounts Payable Interest Payable Income Tax Payable Notes Payable (Long-term) Common Stock Retained Earnings Service Revenue Sales Revenue Interest Revenue Sales Discounts Cost of Goods Sold Depreciation Expense Insurance Expense Rent Expense Salaries Expense Supplies Expense Bad Debt Expense Interest Expense Income Tax Expense Totals 32,000 6,000 1,550 16,100) 62,000 26,960 37,450 52,500 D 200 510 0 24,000 6.400 4,000 40,000 2,100 4,000 3,400 16,100 $ 238,760 $ 238,760 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 (these are shown as items 1 to 14). 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, 2025, in the 'General Journal' tab. 3. Review the adjusted 'Trial Balance' as of December 31, 2025. 4. Prepare an income statement for the period ended December 31, 2025, in the 'Income Statement' tab. 5. Prepare a classified balance sheet as of December 31, 2025 in the 'Balance Sheet' tab.