RWP6-1 (Static) Great Adventures Continuing Case (GL) [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 multiuse (MU) watches. Beyond the normal timekeeping features of most watches, MU watches are able to report temperature, altutude, and barometric pressure. MU watches are waterproof, so moisture from kayaking. rain, fishing, of 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 2025 . All watches are sold for 5500 each July 17 Purchased 50 watches for $7,500 (\$150 per watch) on account. July 31501d40 watches for $20,090 cash. August 12 Purchased 40 watches for $6,400 ( $160 per watch) cash. August 22 Sold 38 watches for $15,000 on account. Septeeher 19 Paid for watches purchased on 2 uly 17. September 22 arceive cash of $9,000 for watches. soid on account on August 22. October 27 Purchased be vatches for $13,600 ( $170 per watch) cash. liowenber 20 sold 93 watches for $45, 000 cash. Decenber 4 Purchased 100 watches for 518;000 (\$180 per watch) on account. Decenber 3 Sold 40 watches for $20,000 on account. Ereat Adventores, Incorporated Trial dalance. Greationentures. Mnongonated rinal Balanice Derarine 31,2825 Ginedit 0=5n Accounts rece inable Debit 56,776 24,660 A - ounce for Locollectible Accounts inventory Egripment Accumulated Depreciation Accounts payable Intenest Payable Income Tax Payable Notes Payable (Long-term) Common Stock Retained Earnings Senvice Revenue Sales Revenue Interest Revenue Sales biscounts cost of Goods 501d Depreciation Expense Insurance Expense Rent Expense Salanies expense Supplies Expense Bad Debt Expense Interest Expense Income Tax Expense Wotals Late in December, the next generation of multiuse (MU il) watches is released. In addition to all of the features of the MU watch, the MU II 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 $100 per watch 1. Record each of the transactions ilisted above in the 'General journal' tab (these are shown as items 1 to 14). Review the 'General Ledger' and the 'Trial Balance' tabs to see the effect of the transactions on the account balances. 2. Record adjusting entries on December 31,2025 , In the 'General Journal' tab. 3. Review the adjusted 'Trial Balance' as of December 31,2025. 4. Prepare an income statement for the period ended December 31, 2025, in the 'Income Statement' tab. 5. Prepare a classiffied balance sheet as of December 31,2025 in the 'Balance Sheet' tab. Journal entry worksheet 2 Purchased 50 watches for $7,500 (\$150 per watch) on account. Record the purchase of inventory on account. Note: Enter debits before credits. Journal entry worksheet Sold 40 watches for $20,000 cash. Record the sale of inventory for cash. Notes Enter debits before credits. Journal entry worksheet Sold 40 watches for $20,000 cash. Record the cost of inventory sold. Note: Enter debits befiore credits. Journal entry worksheet of inventory for cash. Note: Enter debits before credits. Journal entry worksheet Sold 30 watches for $15,000 on account. Record the sale. Note: Enter debits before credits. Journal entry worksheet Sold 30 watches for $15,000 on account. Record the cost of the sale. Note: Enter debits beforeicredits. Journal entry worksheet December 31,2025 Liabilities Current assets. Total Current Liabilities Total Liablities Longterm Assets: Total Stockholders' Equity Total Assets Total Liablities and Stockholders' Equity
