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, flshing. or even diving up to 100 feet won't damage them. Suzie decides to have MU watches avallable 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 $620 each. July 17 Purchased 68 watches for $10,200 ( $150 per wateh) on account. July 31 Sold 52 watches for $32,240 eash. Auguat 12 Purchased $2 watehen for $8,320 ( $160 per wateh) cash. Aagust 22 sold 42 vatches for $26,040 on account. September 19 paid for watchen purcbased on July 17. Septenber 27 Recoive eash of $15,624 for watehes sold on account on August 22 . october 27 Purchased 110 watches' for $19,360 (\$176 per vateh) cash. Novenber 20 sold 102 watchen for $63,240 cash. Decenber 4 Purchased 112 vatebes for 620,832 (5156 per vateh) on account. Decenber \& Bold 52 watehes for $32,240 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, MU II watches are equipped with a global positioning system (GPS) and have the ability to download and play songs and videos Internet. The demand for the original MU watches is greatly reduced. As of December 31 , the estimated net realizable value of I watches is only $100 per watch. 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