Tony and Suzie are ready to expand Great Adventures even further in 2022. Tony believes that many groups in the community (for example, Boy Scouts, church groups, civic groups, and local businesses) would like to hold one-day outings for their members. Groups would engage in outdoor activities such as rock climbing, fishing, capture the flag, paintball, treasure hunts, scavenger hunts, nature hikes, and so on. The purpose of these one-day events would be for each member of the group to learn the importance of TEAM (Together Everyone Achieves More).

Tony knows that most people are not familiar with these types of activities, so to encourage business he allows groups to participate in the event before paying. He offers a 5% quick-payment discount to those that pay within 10 days after the event. He also guarantees that at least eight hours of outdoor activities will be provided or the customer will receive a 20% discount. For the first six months of the year, the following activities occur for TEAM operations.

Jan.		24		Great Adventures purchases outdoor gear such as ropes, helmets, harnesses, compasses, and other miscellaneous equipment for $5,300 cash.
Feb.		25		Mr. Kendalls Boy Scout troop participates in a one-day TEAM adventure. Normally, Tony would charge a group of this size $3,800, but he wants to encourage kids to exercise more and enjoy the outdoors so he charges the group only $3,300. Great Adventures provides these services on account.
Feb.		28		The Boy Scout troop pays the full amount owed, less the 5% quick-payment discount.
Mar.		19		Reynolds Management has its employees participate in a one-day TEAM adventure. Great Adventures provides services on account for $4,300, and Reynolds agrees to pay within 30 days.
Mar.		27		Reynolds pays the full amount owed, less the 5% quick-payment discount.
Apr.		7		Several men from the Elks Lodge decide to participate in a TEAM adventure. They pay $7,800, and the event is scheduled for the following week.
Apr.		14		The TEAM adventure is held for members of the Elks Lodge.
Apr.		30		Myers Manufacturing participates in a TEAM adventure. Great Adventures provides services on account for $6,900, and Myers agrees to pay within 30 days.
May		31		Myers Manufacturing fails to pay the amount owed within the specified period and agrees to sign a three-month, 8% note receivable to replace the existing account receivable.
Jun.		15		Several MBA groups participate in TEAM adventures. Great Adventures provides services on account for $25,500 to these groups, with payment due in July.

Consider the following information as of June 30, 2022.

• Suzie estimates uncollectible accounts to be 10% of accounts receivable (which does not include the $6,900 note receivable from Myers Manufacturing). Prepare the adjusting entry for uncollectible accounts.
• Accrue one month of interest on the note receivable from Myers Manufacturing.

1. Record each of the transactions listed above in the 'General Journal' tab. Review the 'General Ledger' and the 'Trial Balance' tabs to see the effect of the transactions on the account balances. 2. Record the adjusting entries in the 'General Journal' tab. 3. Review the adjusted 'Trial Balance' as of June 30, 2022, in the 'Trial Balance' tab. 4. Prepare an income statement for the period ended June 30, 2022, in the 'Income Statement' tab. 5. Prepare a classified balance sheet as of June 30, 2022 in the 'Balance Sheet' tab. 6. Record the closing entries in the 'General Journal' tab.

Notice the dropdown below that gives the options to select the unadjusted, adjusted or post-closing trial balance. The option you choose will be the values used to populate the income statement and balance sheet tabs. Unadjusted GREAT ADVENTURES, INC. Trial Balance June 15, 2022 Account Title Debit Credit $ 40,000 700 70,000 22,000 Cash Prepaid Rent Equipment Accumulated Depreciation Accounts Payable Interest Payable Notes Payable Common Stock Retained Earnings Depreciation Expense Supplies Expense Salaries Expense Interest Expense Rent Expense Insurance Expense Total 3,400 1,800 36,000 32,000 45,660 8,600 800 15,000 960 1,800 3,000 140,860 $ $ 140,860