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 $560 each. July 17 Purchasej 59 watches for $8,850 (\$150 per wateh) on account. July 31 5old 46 watches for $25,760 cash. August 12 Purchased 46 watches for $7,360 ( $160 per wateh) cash. August 22 Sold 36 watehen for $20,160 on account. Septenber 19 Paid for watebes purehased on July 17. September 27 Receive cash of $12,096 for watches sold on account on hugust 22. october 27 Purchased 95 watches for $16,435 (5173 per wateh) eath. Hovember 20 sold 96 watehes for $53,760 cash. December 4 Purchased 106 vatehes for $19,398 ( 5183 per watch) on account. Decerber B Sold 46 watebee for 525,760 on acoount. Decerber 8 Sold 46 watches for $25,760 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 Il 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. A.s of December 31 , the estimated net realizable value of MU watches is only $100 per watch. Late in December, the next generation of multiuse (MU II) watches is released. In addition to all of the features of the MU watc MU II watches are equipped with a global positioning system (GPS) and have the ability to download and play songs and videc Internet. The demand for the original MU watches is greatly reduced. As of December 31 , the estimated net realizable value of 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. 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 $560 each. July 17 Purchasej 59 watches for $8,850 (\$150 per wateh) on account. July 31 5old 46 watches for $25,760 cash. August 12 Purchased 46 watches for $7,360 ( $160 per wateh) cash. August 22 Sold 36 watehen for $20,160 on account. Septenber 19 Paid for watebes purehased on July 17. September 27 Receive cash of $12,096 for watches sold on account on hugust 22. october 27 Purchased 95 watches for $16,435 (5173 per wateh) eath. Hovember 20 sold 96 watehes for $53,760 cash. December 4 Purchased 106 vatehes for $19,398 ( 5183 per watch) on account. Decerber B Sold 46 watebee for 525,760 on acoount. Decerber 8 Sold 46 watches for $25,760 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 Il 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. A.s of December 31 , the estimated net realizable value of MU watches is only $100 per watch. Late in December, the next generation of multiuse (MU II) watches is released. In addition to all of the features of the MU watc MU II watches are equipped with a global positioning system (GPS) and have the ability to download and play songs and videc Internet. The demand for the original MU watches is greatly reduced. As of December 31 , the estimated net realizable value of 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
