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$$t damage them. Suzie decides to have MU watches available for sale at the start of each clinic. The following transactions relate to purchases and sales of watches during the second half of $2025.$ All watches are sold for $$700$ each. 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

$$700$ each.July $31$ Sold $66$ watches for $$46,200$ cash.

August $12$ Purchased $68$ watches for $$10,880($$$160$ per watch$)$ cash.

August $22$ Sold $50$ watches for $$35,000$ on account.

September $19$ Paid for watches purchased on July $17.$

September $27$ Receive cash of $$21,000$ for watches sold on account on August $22.$

October $27$ Purchased $130$ watches for $$23,400($$$180$ per watch$)$ cash.

November $20$ Sold $120$ watches for $$84,000$ cash.

December $4$ Purchased $120$ watches for $$22,800(\}$$$190\backslash$mathrm$\{$ per watch$)$ on account.

December $8$ Sold $60$ watches for $$42,000$ on account.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.

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.

Record adjusting entries on December $31,2025,$ in the 'General Journal' tab.

Review the adjusted 'Trial Balance' as of December $31,2025.$

Prepare an income statement for the period ended December $31,2025,$ in the 'Income Statement' tab.

Prepare a classified balance sheet as of December $31,2025$ in the 'Balance Sheet' tab. Prepare the journal entries for transactions. $($If no entry is required for a particular transaction$/$event$,$ select $"$No Journal Entry Required"

in the first account field.$)$ Requirement

General

General

Trial Balance

Income

Statement

Balance Sheet

Choose the appropriate accounts to complete the company's income statement. The unadjusted, adjusted, or post$-$closing balances will appear for each account, based on your selection.

Unadjusted

$\backslash$table$[[$GREAT ADVENTURES, INCORPORATED$],[$Income Statement$],[$For the Period Ended December $31,2025],[$Revenues$],[,,],[,,],[,,],[,,],[$Net Sales$],[$Y$,,],[$Gross Profit$],[$Operating Expense:$],[-],[$F$,,],[],[$Y$],[,,],[,,],[,,],[$Total Operating Expenses$],[$Operating Income $($Loss$)],[,,],[,,],[$Income Before Income Taxes$],[,,],[,,]]$Requirement

General

General

Income

Journal

Trial Balance

Statement

Balance Sheet

Prepare a classified balance sheet as of December $31,2025.$ Choose the appropriate accounts to complete the company's balance sheet. The unadjusted, adjusted, or post$-$closing balances will appear for each account, based on your selection.

Unadjusted

July $17$ Purchased $82$ watches for $$12,300($$$150$ per watch$)$ on account.

July $31$ Sold $66$ watches for $$46,200$ cash.

August $12$ Purchased $68$ watches for $$10,880($$$160$ per watch$)$ cash.

August $22$ Sold $50$ watches for $$35,000$ on account.

September $19$ Paid for watches purchased on July $17.$

September $27$ Receive cash of $$21,000$ for watches sold on account on August $22.$

October $27$ Purchased $130$ watches for $$23,400($$$180$ per watch$)$ cash.

November $20$ Sold $120$ watches for $$84,000$ cash.

December $4$ Purchased $120$ watches for $$22,800($$$190$ per watch$)$ on account.

December $8$ Sold $60$ watches for $$42,000$ on account.