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:
| November | 5 | | Issue an additional 112,000 shares of common stock for $10 per share. |
| November | 16 | | Purchase 11,200 shares of its own common stock (i.e., treasury stock) for $21 per share. |
| November | 24 | | Resell 5,200 shares of treasury stock at $22 per share. |
| December | 1 | | Declare a cash dividend on its common stock of $12,600 ($0.10 per share) to all stockholders of record on December 15. |
| December | 20 | | Pay the cash dividend declared on December 1. |
| December | 31 | | Pay $830,000 for construction of new cabins and other facilities. The entire expenditure is recorded in the Buildings account |
The ending balance values from the General Ledger tab flows through to the Trial Balance below. The unadjusted, or post- closing balances will appear for each account, based on your selection. Dates: Nov 05 to: Dec 31 Post-closing GREAT ADVENTURES, INC. Trial Balance December 31, 2022 Account Title Credit S Cash Accounts Receivable Allowance for Uncollectible Accounts Debit 232,084 51,200 2,520 8,200 Inventory Prepaid Insurance Land 1,020 620.000 74,360 26,450 830.000 Equipment Accumulated Depreciation Buildings Accounts Payable Interest Payable Income Tax Payable Deferred Revenue Notes Payable (Current) Notes Payable (Long-term) Contingent Liability Warranty Liability Common Stock Treasury Stock Additional Paid-in Capital Retained Earnings Loss Total 22,000 1,050 15,100 6,200 80,137 586,478 13,200 5,200 132,000 128.000 5.200 186,190 13,200 1,956,064 $ $ 1,061,725 No Date General Journal Debit Credit 1 Nov 05 1.120,000 Cash Common Stock 112,000 2 Nov 16 235,200 Treasury Stock Cash 235,200 3 Nov 24 114.400 Cash Additional Paid-in Capital Treasury Stock 5.200 109.200 4 Dec 01 12.800 Dividends Dividends Payable 12,600 5 Dec 20 Dividends Payable 12.600 Cash O 12,600 6 Dec 30 830.000 Buildings Cash 830.000 7 Dec 31 Service Revenue 45.100 132.000 Sales Revenue Interest Revenue OOOO 240 Retained Earnings 177,340 8 Dec 31 12.800 X 410X 39,100 17.850 800 27,000 Retained Earnings Sales Discounts 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 2.700 8.281 3,000 OOOOOO 15,100 8.300 520 5.200 9 Dec 31 12.800 Retained Earnings Dividends >> 12,600 Choose the appropriate accounts to be reported on the income statement. The unadjust appear for each account, based on your selection. Post-closing Dates: No GREAT ADVENTURES, INC. Income Statement For the Period Ended December 31, 2022 Service Revenue s 0 Sales Revenue 0 Accounts Payable X 22.000 Sales Discounts 0 Net Sales 22.000 Cost of Goods Sold 0 Gross Profit S 22.000 Operating Expense Depreciation Expense 0 Supplies Expense 0 Salaries Expense 0 Bad Debt Expense 0 Rent Expense 0 Insurance Expense 0 Repairs and Maintenance Expense 0 Warranty Expense 0 Loss 13,200 0 > Total Operating Expenses Operating Income (Loss) Interest Revenue 13.200 8.800 0 0 Interest Expense Income Before Income Taxes Income Tax Expense Net Income OOOO 8.800 0 8.800 S Post-closing Dates: Nov 05 to: Dec 31 GREAT ADVENTURES, INC. Trial Balance December 31, 2022 Account Title Credit Debit 232,084 S Cash Accounts Receivable Allowance for Uncollectible Accounts 51,200 2,520 tttt 8,200 1,020 620,000 74,360 26,450 830,000 TL 1 1 1 1 Inventory Prepaid Insurance Land Equipment Accumulated Depreciation Buildings Accounts Payable Interest Payable Income Tax Payable Deferred Revenue Notes Payable (Current) Notes Payable (Long-term) Contingent Liability Warranty Liability Common Stock Treasury Stock Additional Paid-in Capital Retained Earnings 22.000 1,050 15,100 6,200 60,137 586,478 13,200 5,200 132,000 120.000 5,200 186,190 tit Loss 13.200 1,956,064 $ Total S 1,061,725 The ending balance values from the General Ledger tab flows through to the Trial Balance below. The unadjusted, or post- closing balances will appear for each account, based on your selection. Dates: Nov 05 to: Dec 31 Post-closing GREAT ADVENTURES, INC. Trial Balance December 31, 2022 Account Title Credit S Cash Accounts Receivable Allowance for Uncollectible Accounts Debit 232,084 51,200 2,520 8,200 Inventory Prepaid Insurance Land 1,020 620.000 74,360 26,450 830.000 Equipment Accumulated Depreciation Buildings Accounts Payable Interest Payable Income Tax Payable Deferred Revenue Notes Payable (Current) Notes Payable (Long-term) Contingent Liability Warranty Liability Common Stock Treasury Stock Additional Paid-in Capital Retained Earnings Loss Total 22,000 1,050 15,100 6,200 80,137 586,478 13,200 5,200 132,000 128.000 5.200 186,190 13,200 1,956,064 $ $ 1,061,725 No Date General Journal Debit Credit 1 Nov 05 1.120,000 Cash Common Stock 112,000 2 Nov 16 235,200 Treasury Stock Cash 235,200 3 Nov 24 114.400 Cash Additional Paid-in Capital Treasury Stock 5.200 109.200 4 Dec 01 12.800 Dividends Dividends Payable 12,600 5 Dec 20 Dividends Payable 12.600 Cash O 12,600 6 Dec 30 830.000 Buildings Cash 830.000 7 Dec 31 Service Revenue 45.100 132.000 Sales Revenue Interest Revenue OOOO 240 Retained Earnings 177,340 8 Dec 31 12.800 X 410X 39,100 17.850 800 27,000 Retained Earnings Sales Discounts 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 2.700 8.281 3,000 OOOOOO 15,100 8.300 520 5.200 9 Dec 31 12.800 Retained Earnings Dividends >> 12,600 Choose the appropriate accounts to be reported on the income statement. The unadjust appear for each account, based on your selection. Post-closing Dates: No GREAT ADVENTURES, INC. Income Statement For the Period Ended December 31, 2022 Service Revenue s 0 Sales Revenue 0 Accounts Payable X 22.000 Sales Discounts 0 Net Sales 22.000 Cost of Goods Sold 0 Gross Profit S 22.000 Operating Expense Depreciation Expense 0 Supplies Expense 0 Salaries Expense 0 Bad Debt Expense 0 Rent Expense 0 Insurance Expense 0 Repairs and Maintenance Expense 0 Warranty Expense 0 Loss 13,200 0 > Total Operating Expenses Operating Income (Loss) Interest Revenue 13.200 8.800 0 0 Interest Expense Income Before Income Taxes Income Tax Expense Net Income OOOO 8.800 0 8.800 S Post-closing Dates: Nov 05 to: Dec 31 GREAT ADVENTURES, INC. Trial Balance December 31, 2022 Account Title Credit Debit 232,084 S Cash Accounts Receivable Allowance for Uncollectible Accounts 51,200 2,520 tttt 8,200 1,020 620,000 74,360 26,450 830,000 TL 1 1 1 1 Inventory Prepaid Insurance Land Equipment Accumulated Depreciation Buildings Accounts Payable Interest Payable Income Tax Payable Deferred Revenue Notes Payable (Current) Notes Payable (Long-term) Contingent Liability Warranty Liability Common Stock Treasury Stock Additional Paid-in Capital Retained Earnings 22.000 1,050 15,100 6,200 60,137 586,478 13,200 5,200 132,000 120.000 5,200 186,190 tit Loss 13.200 1,956,064 $ Total S 1,061,725
