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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

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 wont 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\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
\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.
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