Tony and Suzie have purchased land for a new camp. Now they need money to build the cabins, dining facility, a ropes course, and an outdoor swimming pool. Tony and Suzie first checked with Summit Bank to see if they could borrow an additional $1 million, but unfortunately the bank turned them down as too risky. Undeterred, they promoted their idea to close friends they had made through the outdoor clinics and TEAM events. They decided to go ahead and sell shares of stock in the company to raise the additional funds for the camp.

Great Adventures has authorized $1 par value common stock. When the company began on July 1, 2021, Tony and Suzie each purchased 10,000 shares (20,000 shares total) of $1 par value common stock at $1 per share. The following transactions affect stockholders equity during the remainder of 2022:

1Record the issue of additional 126,000 shares of common stock for $10 per share.

2Record the purchase of 12,600 shares of its own common stock (i.e., treasury stock) for $28 per share.

3Record the resale of 6,600 shares of treasury stock at $29 per share.

4Record the declaration of $14,000 ($0.10 per share) cash dividend on its common stock to all stockholders of record on December 15.

5Record the payment of cash dividend declared on Dec. 1.

6Record the payment of $865,000 for construction of new cabins and other facilities. The entire expenditure is recorded in the Buildings account.

7Prepare the closing entry for the revenue accounts.

8Prepare the closing entry for the expense and loss accounts.

9Prepare the closing entry for the dividend account.

72,584 52,600 2,660 9,600 1,160 760,000 88,780 Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Prepaid Insurance Land Equipment Accumulated Depreciation Accounts Payable Interest Payable Income Tax Payable Deferred Revenue Notes Payable (Long-term) Notes Payable (Current) Contingent Liability Warranty Liability Common Stock Retained Earnings Service Revenue Sales Revenue Sales Discounts Interest Revenue Cost of Goods Sold Depreciation Expense Supplies Expense Salaries Expense Bad Debt Expense Interest Expense Rent Expense Income Tax Expense Insurance Expense Repairs and Maintenance Expense Warranty Expense 27,850 23,400 1,400 15,800 7,600 715,520 74,281 14,600 6,600 20,000 34,750 45,800 146,000 480 380 39,800 18,550 1,150 30,500 3,050 10,027 3,700 15,800 7,000 660 Loss 6,600 14,600 1,136,641 $ Total $ 1,136,641 GREAT ADVENTURES, INC. Income Statement For the Period Ended December 31, 2022 Net Sales Gross Profit Operating Expense Total Operating Expenses Operating Income (Loss) GREAT ADVENTURES, INC. Balance Sheet December 31, 2022 Assets Liabilities Current Assets: Current Liabilities: 01 0 OP 0 0 Total Current Liabilities Total Liabilities Total Current Assets Long-term Assets: Stockholders' Equity OP 0 Total Stockholders' Equity Total Liabilities and Stockholders' Equity Total assets so

Question

Tony and Suzie have purchased land for a new camp. Now they need money to build the cabins, dining facility, a ropes course, and an outdoor swimming pool. Tony and Suzie first checked with Summit Bank to see if they could borrow an additional $1 million, but unfortunately the bank turned them down as too risky. Undeterred, they promoted their idea to close friends they had made through the outdoor clinics and TEAM events. They decided to go ahead and sell shares of stock in the company to raise the additional funds for the camp.

Great Adventures has authorized $1 par value common stock. When the company began on July 1, 2021, Tony and Suzie each purchased 10,000 shares (20,000 shares total) of $1 par value common stock at $1 per share. The following transactions affect stockholders equity during the remainder of 2022:

1Record the issue of additional 126,000 shares of common stock for $10 per share.
2Record the purchase of 12,600 shares of its own common stock (i.e., treasury stock) for $28 per share.
3Record the resale of 6,600 shares of treasury stock at $29 per share.
4Record the declaration of $14,000 ($0.10 per share) cash dividend on its common stock to all stockholders of record on December 15.
5Record the payment of cash dividend declared on Dec. 1.
6Record the payment of $865,000 for construction of new cabins and other facilities. The entire expenditure is recorded in the Buildings account.
7Prepare the closing entry for the revenue accounts.
8Prepare the closing entry for the expense and loss accounts.
9Prepare the closing entry for the dividend account.

72,584 52,600 2,660 9,600 1,160 760,000 88,780 Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Prepaid Insurance Land Equipment Accumulated Depreciation Accounts Payable Interest Payable Income Tax Payable Deferred Revenue Notes Payable (Long-term) Notes Payable (Current) Contingent Liability Warranty Liability Common Stock Retained Earnings Service Revenue Sales Revenue Sales Discounts Interest Revenue Cost of Goods Sold Depreciation Expense Supplies Expense Salaries Expense Bad Debt Expense Interest Expense Rent Expense Income Tax Expense Insurance Expense Repairs and Maintenance Expense Warranty Expense 27,850 23,400 1,400 15,800 7,600 715,520 74,281 14,600 6,600 20,000 34,750 45,800 146,000 480 380 39,800 18,550 1,150 30,500 3,050 10,027 3,700 15,800 7,000 660 Loss 6,600 14,600 1,136,641 $ Total $ 1,136,641 GREAT ADVENTURES, INC. Income Statement For the Period Ended December 31, 2022 Net Sales Gross Profit Operating Expense Total Operating Expenses Operating Income (Loss) GREAT ADVENTURES, INC. Balance Sheet December 31, 2022 Assets Liabilities Current Assets: Current Liabilities: 01 0 OP 0 0 Total Current Liabilities Total Liabilities Total Current Assets Long-term Assets: Stockholders' Equity OP 0 Total Stockholders' Equity Total Liabilities and Stockholders' Equity Total assets so