Please helpy with the last four of the general journal.
Tony knows that most people are not familiar with these types of activities, so to encourage business he allows groups to participate in the event before paying. He offers a 5% quick-payment discount to those that pay within 10 days after the event. He also guarantees that at least eight hours of outdoor activities will be provided or the customer will receive a 20% discount. For the first six months of the year, the following activities occur for TEAM operations. Jan. 24 Great Adventures purchases outdoor gear such as ropes, helmets, harnesses, compasses, and other miscellaneous equipment for $5,000 cash. Feb. 25 Mr. Kendall's Boy Scout troop participates in a one-day TEAM adventure. Normally, Tony would charge a group of this size $3,500, but he wants to encourage kids to exercise more and enjoy the outdoors so he charges the group only $3,000. Great Adventures provides these services on account. Feb. 28 The Boy Scout troop pays the full amount owed, less the 5% quick-payment discount. Mar. 19 Reynold's Management has its employees participate in a one-day TEAM adventure. Great Adventures provides services on account for $4,000, and Reynold's agrees to pay within 30 days. Mar. 27 Reynold's pays the full amount owed, less the 5% quick-payment discount. Apr. 7 Several men from the Elks Lodge decide to participate in a TEAM adventure. They pay $7,500, and the event is scheduled for the following week. Apr. 14 The TEAM adventure is held for members of the Elks Lodge. Apr. 30 Myers Manufacturing participates in a TEAM adventure. Great Adventures provides services on account for $6,000, and Myers agrees to pay within 30 days. May 31 Myers Manufacturing fails to pay the amount owed within the specified period and agrees to sign a three-month, 8% note receivable to replace the existing account receivable. 15 Several MBA groups participate in TEAM adventures. Great Adventures provides services on account for $24,000 to these groups, with payment due in July. Jun. Suzie estimates uncollectible accounts to be 10% of accounts receivable (which does not include the $6,000 note receivable from Myers Manufacturing). Prepare the adjusting entry for uncollectible accounts. 11 Record adjusting entry for uncollectible accounts. 12 Record the accrued interest revenue. 13 Record the closure of revenue accounts. 14 Record the closure of expense accounts. Post-closing GREAT ADVENTURES, INC. Income Statement For the Period Ended June 30, 2022 Revenue: Service Revenue o Interest Revenue 0 O 0 Total Revenue 0 Expense: Sales Discounts 300 Bad Debt Expense 2,400 0 0 0 0 0 0 Total Expense 2,700 (2,700) Net Income $ GREAT ADVENTURES, INC. Balance Sheet June 30, 2022 Assets Liabilities Current Assets: Current Liabilities: Cash 46,200 $ 0 0 oo Allowance for Uncollectible Accounts (2,400) 0 Total Current Liabilities 0 0 0 O 0 0 0 Total Current Assets 0 43,800 Total Liabilities Stockholders' Equity Long-term Assets: 0 0 0 0 0 0 0 0 Total Stockholders' Equity 43,800 Total Liabilities and Stockholders' Equity Total Assets $ 0 Tony knows that most people are not familiar with these types of activities, so to encourage business he allows groups to participate in the event before paying. He offers a 5% quick-payment discount to those that pay within 10 days after the event. He also guarantees that at least eight hours of outdoor activities will be provided or the customer will receive a 20% discount. For the first six months of the year, the following activities occur for TEAM operations. Jan. 24 Great Adventures purchases outdoor gear such as ropes, helmets, harnesses, compasses, and other miscellaneous equipment for $5,000 cash. Feb. 25 Mr. Kendall's Boy Scout troop participates in a one-day TEAM adventure. Normally, Tony would charge a group of this size $3,500, but he wants to encourage kids to exercise more and enjoy the outdoors so he charges the group only $3,000. Great Adventures provides these services on account. Feb. 28 The Boy Scout troop pays the full amount owed, less the 5% quick-payment discount. Mar. 19 Reynold's Management has its employees participate in a one-day TEAM adventure. Great Adventures provides services on account for $4,000, and Reynold's agrees to pay within 30 days. Mar. 27 Reynold's pays the full amount owed, less the 5% quick-payment discount. Apr. 7 Several men from the Elks Lodge decide to participate in a TEAM adventure. They pay $7,500, and the event is scheduled for the following week. Apr. 14 The TEAM adventure is held for members of the Elks Lodge. Apr. 30 Myers Manufacturing participates in a TEAM adventure. Great Adventures provides services on account for $6,000, and Myers agrees to pay within 30 days. May 31 Myers Manufacturing fails to pay the amount owed within the specified period and agrees to sign a three-month, 8% note receivable to replace the existing account receivable. 15 Several MBA groups participate in TEAM adventures. Great Adventures provides services on account for $24,000 to these groups, with payment due in July. Jun. Suzie estimates uncollectible accounts to be 10% of accounts receivable (which does not include the $6,000 note receivable from Myers Manufacturing). Prepare the adjusting entry for uncollectible accounts. 11 Record adjusting entry for uncollectible accounts. 12 Record the accrued interest revenue. 13 Record the closure of revenue accounts. 14 Record the closure of expense accounts. Post-closing GREAT ADVENTURES, INC. Income Statement For the Period Ended June 30, 2022 Revenue: Service Revenue o Interest Revenue 0 O 0 Total Revenue 0 Expense: Sales Discounts 300 Bad Debt Expense 2,400 0 0 0 0 0 0 Total Expense 2,700 (2,700) Net Income $ GREAT ADVENTURES, INC. Balance Sheet June 30, 2022 Assets Liabilities Current Assets: Current Liabilities: Cash 46,200 $ 0 0 oo Allowance for Uncollectible Accounts (2,400) 0 Total Current Liabilities 0 0 0 O 0 0 0 Total Current Assets 0 43,800 Total Liabilities Stockholders' Equity Long-term Assets: 0 0 0 0 0 0 0 0 Total Stockholders' Equity 43,800 Total Liabilities and Stockholders' Equity Total Assets $ 0
