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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 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 All watches are sold for $ 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 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 All watches are sold for
$ each.July Sold watches for $ cash.
August Purchased watches for $$ per watch cash.
August Sold watches for $ on account.
September Paid for watches purchased on July
September Receive cash of $ for watches sold on account on August
October Purchased watches for $$ per watch cash.
November Sold watches for $ cash.
December Purchased watches for $$mathrm per watch on account.
December Sold watches for $ on account.Late in December, the next generation of multiuse MU II watches is released. In addition to all of the features of the MU watch, the
MU II watches are equipped with a global positioning system GPS and have the ability to download and play songs and videos off the
Internet. The demand for the original MU watches is greatly reduced. As of December the estimated net realizable value of MU
watches is only $ per watch.
Record each of the transactions listed above in the 'General Journal' tab these are shown as items to Review the
'General Ledger' and the 'Trial Balance' tabs to see the effect of the transactions on the account balances.
Record adjusting entries on December in the 'General Journal' tab.
Review the adjusted 'Trial Balance' as of December
Prepare an income statement for the period ended December in the 'Income Statement' tab.
Prepare a classified balance sheet as of December in the 'Balance Sheet' tab. Prepare the journal entries for transactions. If no entry is required for a particular transactionevent select No Journal Entry Required"
in the first account field. Requirement
General
General
Trial Balance
Income
Statement
Balance Sheet
Choose the appropriate accounts to complete the company's income statement. The unadjusted, adjusted, or postclosing balances will appear for each account, based on your selection.
Unadjusted
tableGREAT ADVENTURES, INCORPORATEDIncome StatementFor the Period Ended December RevenuesNet SalesYGross ProfitOperating Expense:FYTotal Operating ExpensesOperating Income LossIncome Before Income TaxesRequirement
General
General
Income
Journal
Trial Balance
Statement
Balance Sheet
Prepare a classified balance sheet as of December Choose the appropriate accounts to complete the company's balance sheet. The unadjusted, adjusted, or postclosing balances will appear for each account, based on your selection.
Unadjusted
July Purchased watches for $$ per watch on account.
July Sold watches for $ cash.
August Purchased watches for $$ per watch cash.
August Sold watches for $ on account.
September Paid for watches purchased on July
September Receive cash of $ for watches sold on account on August
October Purchased watches for $$ per watch cash.
November Sold watches for $ cash.
December Purchased watches for $$ per watch on account.
December Sold watches for $ on account.
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