RWP$8-1($Algo$)$ Great Adventures Continuing Case $($GL$)$

At the end of $2025,$ the following information is available for Great Adventures.

Additional interest for five months needs to be accrued on the $$31,200,6\%$ note payable obtained on August $1,2024.$ Recall that

annual interest is paid each July $31.$

Assume that $$11,200$ of the $$31,200$ note discussed above is due next year. Record the entry to reclassify the current portion of the

long$-$term note.

By the end of the year, $$20,000$ in gift cards have been redeemed. The company had sold gift cards of $$26,200$ during the year and

recorded those as Deferred Revenue.

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 $$13,200.$

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 $$5,200.$

Prepare the journal entries for transactions. $($If no entry is required for a particular transaction$/$event$,$ select $"$No Journal Entry Required"

in the first account field.$)$

Journal entry worksheet

Record the closing entry for revenue accounts.

Note: Enter debits before credits.