[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, altitude, 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 2025 . All watches are soid for $500 each. July 17 Purchased 50 watches for $7,500 (\$150 per watch) on account. July 31 Sold 40 watches for $20,600 cash. August 12 Purchased 40 watches for $6,4e ( $16e per watch) cash. August 22 Sold 30 watches for $15,660 on account. Septenber 19 - Paid for watches purchased on July 17. Septenber 27 Recelve cash of $9,069 for watches sold on account on August 22. October 27 Purchased 80 watches for $13,609 (\$17e per watch) cash. Noveaber 28 sold 90 watches for $45, eee cash. Decenber 4 Purchased 18e watches for $18,6e0 ( $189 per watch) on account. December 8 sold 40 watches for $20,00e on account. Late in December, the next generation of multuse (MU II) watches is released. In addition to all of the features of the MU watch, the MU II watches are equipped with global positioning system (GPS) and have the ability to downioad and play songs and videos off the internet. The demand for the originai 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 listed 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 loumar' tab. 3. Review the adfosted '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 claseified balance sheet as of December 31,2025 in the 'calance sheet' tab