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RWP 8 - 1 ( Algo ) Great Adventures Continuing Case ( GL ) At the end of 2 0 2 5 , the following

RWP8-1(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.
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