This is all the information we are given for the case below:

Required:

With the CFO's help, you developed the following work plan for the project:

1. Set up T-accounts with proper account titles and beginning balances.

2. Analyze each of the summary transitions 1 - 18, determine the proper journal entries and record the journal entries in the general journal.

3. Post journal entries to T-accounts.

4. unadjusted trial balance. Correct mistakes before continuing to the next step if your accounts are out of balance.

5. Analyze adjustments in item 19 and determine proper adjusting entries. Record the adjusting entries in the general journal.

6. Post adjusting entries to T-accounts and adjusted trial balance. Correct mistakes before continuing to the next step if your accounts are out of balance.

7. need classified Income Statement and then classified Balance Sheet. need the Statement of Stockholder's Equity. Pay attention to proper titles, dates, and formats.

8. Need Statement of Cash Flows using direct and indirect methods. Significant non-cash transactions must be disclosed in the footnote.

9. post the closing entries to T-accounts.

10. Compute EPS, ROA, ROE, Average Collection Period, Inventory Turnover, PE ratio, and Free-Cash Flow. Give comments on these ratios.

11. Submit a report. Please include the following in your reports:

1. Balance Sheet, Income Statement, Statement of Owner's Equity, and Statement of Cash Flows.
2. Financial ratios you computed in requirement 10 with your analysis.
3. General Journal with all journal entries including the adjusting entries.
4. Adjusted and unadjusted trial balances.

HINTS:

1. Do not keep decimals, round all number to thousand.

2. Record salary, payroll taxes, insurance, infomercial, and other expense as Operating Expenses. Keep Depreciation Expenses and Interest Expenses in separate accounts. This helps reducing the number of T-accounts.

3. Assume the tax rate is also 28% for the gains on sale of long-term assets.

Great Adventures Company, Inc., specializes in supplies, gears and equipment for sports and outdoor adventures. The products it sells range from tennis balls, gloves to skiing gears, and off-road motorcycles. The company purchases its products from manufactures worldwide and sells them to a large network of independent retail shops and dealers in North America. Business is booming as the population becomes more health-conscious and more people participate in sports and outdoor adventures. In addition to its main business, the company is planning to diversify its business into running ski resorts and out-door parks.

The company's stock is actively traded on the New York Stock Exchange. At the end of the first quarter of the year 2022, the company's CFO is in the process of preparing financial statements for filing with the SEC and reporting to shareholders at the coming stockholder's conference late April. The CFO has obtained summarized information on the company's business activities from the controller's office. The CFO asks for your assistance to analyze the information and come up with a draft of quarterly financial statements with a brief analysis.

Summary of Business Activities in the First Quarter 2022

All dollar amounts are in thousands (000) except the per-share values.

1. To finance business expansion, the company signed an agreement with a national bank in December 2021 to obtain a $30,000 three-year loan. The amount was deposited into the company's bank account on January 1, 2022. The interest on the loan is due semiannually and carries a 12% annual interest rate.
2. On January 20, Great Adventures reached an agreement to purchase a large plot of land in a mountainous area in Vermont as the site for the future ski resort. In this share-based transaction, the company agreed to issue 500,000 shares of its common stock as a way of payment. The common stock has a $1 par value per share. The transaction was closed on March 1 when stocks were trading at $23 per share.
3. On February 1, the company issued five million shares of its common stock through an investment banker on Wall Street and received $95,760 in cash proceeds.
4. In January, the company received $45,000 in cash from customers who bought merchandizes last year. The remaining $30,000 was received in February.
5. On January 28, the company paid its suppliers for a total of $29,630 in cash through its bank for the purchases made last year.
6. On February 1, the company signed an agreement with a national TV station to run the company's infomercial between 11:00 am - 12:00 pm each day for three months and paid a total cost of $1,660.
7. On February 15, the company closed a deal to purchase a new warehouse building in a suburban area outside Boston for $8,800 in cash. The warehouse was placed in use immediately.
8. On February 28, the company closed a deal to sell an office building for $4,580 in cash at a significant gain of $2,115. The building was temporarily rented to another company before it was sold. The building was purchase in 1980 for a total cost of $5,675.
9. On February 28, the company paid its suppliers for the remaining unpaid purchases made last year.
10. On March 1, the company paid the employer's portion of health insurance premium to the insurance provider. The total amount paid was $12,435 which would cover a period of 12 months. The remainder of the premium was paid by the employees through salaries withholding, according to the employment contract.
11. On March 1, the company purchased 300,000 shares of its own common stock at $24 per share. These shares were needed to issue to top executives for their employee stock option plan.
12. On March 30, the company declared and paid a quarterly cash dividend of $0.20 for shares outstanding on March 28.
13. Company's total sales for the quarter are listed below. All sales were credit sales.
14. Total Net sales Revenue: January=$148,000. February=$168,000. March=$199,000. Total= $515,000. The amount was net of sales return and sales discount.
15. The collection for sales was as follows: January sales were received in full by the end of March. The total amount received for February and March sales was $138,000 and $106,000, respectively.
    

Great Adventures, Inc. General Journal March 31, 2022 Date Description Debit Credit Description - Example Cash 30,000 Note Payable 30.000Great Adventures, Inc. Unadjusted / Adjusted Trial Balance March 31, 2022 Accounts Debit Credit Total\fAccumulated Depreciation Accounts Payable Interests Payable Unearned Revenue Income Tax Payable Notes Payable Common Stock Additional Paid-in CapitalSalary & Payroll Other Operating Tax Expenses Expenses January $ 26,410 $ 5,630 February 28,230 6.430 March (First 3 weeks) 21.620 4.460 Total $ 76,260 $ 16,520\fBalance Sheet for Great Adventures at 12/31/2021 Great Adventures, Inc. Balance Sheet (In USD 1,000) December 31, 2021 Assets Liabilities Current assets: Current liabilities: Cash $138,800 Accounts payable $39,630 Accounts Receivable - Net $75,000 Interest payable $1,750 Merchandise Inventory $111,836 Unearned Revenues $38,846 Prepayments $2,300 Income tax payable $48,680 Total current assets $327,936 Total current liabilities $128,906 Notes payable (2 year, 9%) $25,000 Long-term assets: Total Long-term Liabilities $25,000 Land $34,290 Stockholders' Equity Buildings $85,000 Common stock ($1 Par) $20,000 Equipment $56,650 Additional Paid-in Capital $157,965 Accumulated Depreciation ($25,225) Retained earnings $146,780 Total Long-term asset $150,715 Total stockholders' equity $324,745 Total assets $478,651 Liabilities & stockholders' equity $478,651