RWP$7-1($Static$)$ Great Adventures Continuing Case$[$The following information applies to the questions displayed below.$]$Tony and Suzie see the need for a rugged all$-$terrain vehicle to transport participants and supplies. They decide to purchase a used Suburban on July $1,2025,$ for $$12,000.$ They expect to use the Suburban for five years and then sell the vehicle for $$4,500.$ The following expenditures related to the vehicle were also made on July $1,2025$:$*$ The company pays $$1,800$ to$$GEICO$$for a one$-$year insurance policy.$*$ The company spends an extra $$3,000$ to repaint the vehicle, placing the Great Adventures logo on the front hood, back, and both sides.$*$ An additional $$2,000$ is spent on a deluxe roof rack and a trailer hitch.The painting, roof rack, and hitch are all expected to increase the future benefits of the vehicle for Great Adventures. In addition, on October $22,2025,$ the company pays $$400$ for basic vehicle maintenance related to changing the oil, replacing the windshield wipers, rotating the tires, and inserting a new air filter. there is $5$ deferent journals each number represents ONE journal

journal entry worksheets

$1.$ Additional interest for five months needs to be accrued on the $$30,000,6\%$ note payable obtained on August $1,2024.$ Recall that annual interest is paid each July $31.$ Record the adjusting entry.

$2.$ Assume that $$10,000$ of the $$30,000$ note discussed above is due next year. Record the entry to reclassify the current portion of the long$-$term note.

$3.$ By the end of the year, $$20,000$ in gift cards have been redeemed. The company had sold gift cards of $$25,000$ during the year and recorded those as Deferred Revenue. Record the adjusting entry.

$4.$ Great Adventures is a defendant in litigation involving a biking accident during one of its adventure races. The company believes the likelihood of payment occurring is probable, and the estimated amount to be paid is $$12,000.$ Record the adjusting entry.

$5.$ For sales of MU watches, Great Adventures offers a warranty against defect for one year. At the end of the year, the company estimates future warranty costs to be $$4,000.$ Record the adjusting entry.