Tonys favorite memories of his childhood were the times he spent with his dad at camp. Tony was daydreaming of those days a bit as he and Suzie jogged along a nature trail and came across a wonderful piece of property for sale. He turned to Suzie and said, Ive always wanted to start a camp where families could get away and spend some quality time together. If we just had the money, I know this would be the perfect place. On November 1, 2022, Great Adventures purchased the land by issuing a $660,000, 6%, 10-year installment note to the seller. Payments of $7,327 are required at the end of each month over the life of the 10-year loan. Each monthly payment of $7,327 includes both interest expense and principal payments (i.e., reduction of the loan amount). Late that night Tony exclaimed, We now have land for our new camp; this has to be the best news ever! Suzie said, Theres something else I need to tell you. Im expecting! They decided right then, if it was a boy, they would name him Venture.

• 1

  Record the issuance of the long-term note payable for the purchase of land on November 1, 2022.

• 2

  Record the first monthly payment on the long-term note payable, made on November 30, 2022.

• 3

  Record the second monthly payment on the long-term note payable, made on December 31, 2022.

• 4

  The 12 monthly payments in 2023 (following year) will reduce the note's balance by an additional $50,178. Record the reclassification of this amount from long-term notes payable to current notes payable.

• 5

  Prepare the closing entry for revenue accounts.

• 6

  Prepare the closing entry for expense and loss accounts.

• 

Account Title Credit Debit 89,310 51,600 2,560 diidid 8,600 1,060 78,480 Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Prepaid Insurance Equipment Accumulated Depreciation Accounts Payable Interest Payable Income Tax Payable Deferred Revenue Notes Payable (Current) Notes Payable (Long-term) 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 Loss Total 26,850 22,400 1,150 15,300 6,600 14,000 21,600 13,600 5,600 20,000 34,250 45,300 136,000 430 280 39,300 18,050 900 28,000 2,800 2,200 3,200 15,300 6,500 560 5,600 13,600 365,490 $ 365,490 GREAT ADVENTURES, INC. Income Statement For the period ended December 31, 2022 Revenue: Net sales Gross profit Expense: Total operating expenses Operating income Income before Income Taxes GREAT ADVENTURES, INC. Balance Sheet December 31, 2022 Liabilities Current Liabilities: Assets Current Assets: Total Current Liabilities Long-term Liabilities 0 Total Current Assets Long-term assets: Total liabilities Stockholders' Equity Total Stockholders' Equity 0 Total Liabilities & Stockholders' Equity Total Assets