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.
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 $509 each. July 17 July 31. Purchased 59 watches for $9,381 ($159 per watch) on account. Sold 49 watches for $24,941 cash. August 12 Purchased 49 watches for $8,281 ($169 per watch) cash. August 22 Sold 39 watches for $19,851 on account. September 19 Paid for watches purchased on July 17. September 27 Receive cash of $14,400 for watches sold on account on August 22. October 27 Purchased 89 watches for $15,931 ($179 per watch) cash. November 20 Sold 99 watches for $50,391 cash. December 4 Purchased 118 watches for $22,302 ($189 per watch) on account. December 8. Sold 49 watches for $24,941 on account. RWP6-1 (Algo) Great Adventures Continuing Case Part 1 Required: 1-a. Calculate sales revenue, cost of goods sold, and ending inventory as of December 31, 2025, assuming Suzie uses a FIFO perpetual inventory system to account for inventory. 1-b. Prepare the gross profit section of a partial income statement for transactions related to MU watches. Complete this question by entering your answers in the tabs below. Req la Req 1b Calculate sales revenue, cost of goods sold, and ending inventory as of December 31, 2025, assuming Suzie uses a FIFO perpetual inventory system to account for inventory. Sales Revenue Cost of Goods Sold Ending Inventory 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 $509 each. Purchased 59 watches for $9,381 ($159 per watch) on account. Sold 49 watches for $24,941 cash. July 17 July 31 August 12 August 22 Purchased 49 watches for $8,281 ($169 per watch) cash. Sold 39 watches for $19,851 on account. September 19 Paid for watches purchased on July 17. September 27 Receive cash of $14,400 for watches sold on account on August 22. October 27 Purchased 89 watches for $15,931 ($179 per watch) cash. November 20 Sold 99 watches for $50,391 cash. December 4 Purchased 118 watches for $22,302 ($189 per watch) on account. December 8 Sold 49 watches for $24,941 on account. RWP6-1 (Algo) Great Adventures Continuing Case Part 1 Required: 1-a. Calculate sales revenue, cost of goods sold, and ending inventory as of December 31, 2025, assuming Suzie uses a FIFO perpetual inventory system to account for inventory. 1-b. Prepare the gross profit section of a partial income statement for transactions related to MU watches. Complete this question by entering your answers in the tabs below. Req la Req 1b Prepare the gross profit section of a partial income statement for transactions related to MU watches. GREAT ADVENTURES, INCORPORATED Partial Income Statement For the Year Ended December 31, 2025 Gross Profit 2. 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 $109 per watch. a. Record any necessary adjusting entry on December 31, 2025, related to this information. b. For what amount would MU inventory be reported in the December 31, 2025, balance sheet? c. Prepare an updated gross profit section of a partial income statement accounting for this additional information. Complete this question by entering your answers in the tabs below. Required A Required B Required C Record any necessary adjusting entry on December 31, 2025, related to this information. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 2. 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 $109 per watch. a. Record any necessary adjusting entry on December 31, 2025, related to this information. b. For what amount would MU inventory be reported in the December 31, 2025, balance sheet? c. Prepare an updated gross profit section of a partial income statement accounting for this additional information. Complete this question by entering your answers in the tabs below. Required A Required B Required C Prepare an updated gross profit section of a partial income statement accounting for this additional information. GREAT ADVENTURES, INCORPORATED Partial Income Statement For the Year Ended December 31, 2025 Gross Profit
