Prepare the journal entries for transactions.
Great Adventures has net income of $35,835 in 2022. Retained earnings at the beginning of 2022 was $33,450. Prepare the stockholders equity section of the balance sheet for Great Adventures as of December 31, 2022.
Tony and Suzie have purchased land for a new camp. Now they need money to build the cabins, dining facility, a ropes course, and an outdoor swimming pool. Tony and Suzie first checked with Summit Bank to see if they could borrow an additional $1 million, but unfortunately the bank turned them down as too risky. Undeterred, they promoted their idea to close friends they had made through the outdoor clinics and TEAM events. They decided to go ahead and sell shares of stock in the company to raise the additional funds for the camp. Great Adventures has authorized $1 par value common stock. When the company began on July 1, 2021, Tony and Suzie each purchased 10,000 shares (20,000 shares total) of $1 par value common stock at $1 per share. The following transactions affect stockholders' equity during the remainder of 2022: November 5 Issue an additional 100,000 shares of common stock for $10 per share. November 16 Purchase 10,000 shares of its own common stock (i.e., treasury stock) for $15 per share. November 24 Resell 4,000 shares of treasury stock at $16 per share. December 1 Declare a cash dividend on its common stock of $11,400 ($0.10 per share) to all stockholders of record on December 15. December 20 Pay the cash dividend declared on December 1. December 31 Pay $800,000 for construction of new cabins and other facilities. The entire expenditure is recorded in the Buildings account. Record the issue of additional 100,000 shares of common stock for $10 per share. Record the purchase of 10,000 shares of its own common stock (i.e., treasury stock) for $15 per share. Record the resale of 4,000 shares of treasury stock at $16 per share. Record the declaration of $11,400 ($0.10 per share) cash dividend on its common stock to all stockholders of record on December 15. Record the payment of cash dividend declared on Dec. 1. Record the payment of $800,000 for construction of new cabins and other facilities. The entire expenditure is recorded in the Buildings account. Prepare the closing entry for the revenue accounts. Prepare the closing entry for the expense and loss accounts. Prepare the closing entry for the dividend account. GREAT ADVENTURES, INC. Balance Sheet (Stockholders' Equity Section) December 31, 2022 Stockholders' equity: Total paid-in capital Total stockholders' equity
