Required Information Great Adventures Problem AP6-1 The following information applies to the questions displayed below) 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 multluse (MU) watches Beyond the normal timekeeping features of most watches, MU watches are able to report temperature, alttude, 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 2022. All watches are sold for $510 each Jul 17 Purchased a watches for $9.500 (5150 per watch) on account Jul 31 Sold se watches for $25,500 cash. Aug. 12 Purchased se watches for $3,50 (5170 per watch) cash. Aug. 22 Sold to watches for $20,000 on account. Sep. 19 Paid for watches purchased on July 17. Sep. 27 Receive cash of $15.000 for watches sold on account on August 22 Oct. 27 Purchased se watches for $16,200 (518e per watch) cash. Nov. 20 Sold 100 watches for $51, bee cash... Dec. 4 Purchased 120 watches for $22,800 ($190 per watch) on account. Dec. 8 Sold se watches for $25, see on account. Great Adventures Problem AP6-1 Part 1 Required: 1-a. Calculate sales revenue, cost of goods sold, and ending inventory as of December 31, 2022 assuming Suzie uses FIFO to account for Inventory Sales Revenue Cost of Goods Sold Ending Inventory 1-b. Prepare the gross profit section of a partial income statement for transactions related to MU watches GREAT ADVENTURES, INC. Partiainen Statement For the Year Ended December 31, 2022 Gross proft 2. Late in December, the next generation of multluse (MUI) watches is released. In addition to all of the features of the MU watch, the MU I 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 $110 per watch. a. Record any necessary adjustment on December 31, 2022 related to this information (If no entry is required for transaction/event, select "No Journal Entry Required" In the first account field.) View transaction list Journal entry worksheet Record the adjustment for inventory Note: Enter des before credits Date General Journal Debit Credit Dec 31, 2022 REALITAT Record entry Clear entry View general journal b. For what amount would MU inventory be reported in the December 31, 2022. balance sheet? MU Inventory c. Prepare an updated gross profit section of a partial income statement accounting for this additional Information GREAT ADVENTURES, INC. Partial Income Statement For the Year Ended December 31, 2022 Gross Proft 2
