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 $$520$ each.

$\backslash$table$[[$July $17,$Purchased $53$ watches for $$7,950($ $$150$ per watch$)$ on account.$],[$July $31,$Sold $42$ watches for $$21,840$ cash.$],[$August $12,$Purchased $42$ watches for $$6,720($ $$160$ per watch$)$ cash.$],[$August $22,$Sold $32$ watches for $$16,640$ on account.$],[$September $19$ Paid for watches purchased on July $17.,],[$September $27$ Receive cash of $$9,984$ for watches sold on account on August $22.,],[$October $27,$Purchased $85$ watches for $$14,535($ $$171$ per watch$)$ cash.$],[$November $20,$Sold $92$ watches for $$47,840$ cash.$],[$December $4,$Purchased $102$ watches for $$18,462($ $$181$ per watch$)$ on account.$],[$December $8,$Sold $42$ watches for $$21,840$ 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.

Requirement

General

General

Trial Balance

Income

Balance Sheet

Record each of the transactions listed above in the 'General Journal' tab $($these are shc 'General Ledger' and the 'Trial Balance' tabs to see the effect of the transactions on the a $2.$ Record adjusting entries on December $31,2025,$ in the 'Gerieral Jouraal' tab.

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

Prepare an income statement for the period ended December $31,2525,$ in the Income $5.$ Prepare a classified balance sheet as of December $31,2025$ in the 'salance sheet' tab.