Great Adventures Problem AP10-1 (GL) 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 138,000 shares of common stock for $10 per share. November 16 Purchase 13,800 shares of its own common stock (1.e., treasury stock) for $34 per share. November 24 Resell 7,800 shares of treasury stock at $35 per share. December 1 Declare a cash dividend on its common stock of $15,200 ($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 $895,000 for construction of new cabins and other facilities. The entire expenditure is recorded in the Buildings account. Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet The balance sheet is the accounting equation: Assets = Liabilities + Equity. Each asset and liability account is reported separately on the balance sheet. The unadjusted, or post-closing balances will appear for each account, based on your selection. Post-closing Dates: Nov 05 to: Dec 31 GREAT ADVENTURES INC Balance Sheet December 31, 2022 Assets Liabilities Current Assets Current Liabilities 0 o $ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Total Current Liabilities 0 0 0 0 0 0 Total Liabilities 0 Total Current Assets Long-term Assets + Stockholders' Equity 0 0 0 0 0 0 Total Stockholders' Equity 0 Total Liabilities and Stockholders' Equity OO Total assets $ $ GREAT ADVENTURES, INC. Income Statement For the Period Ended December 31, 2022 $ 0 0 0 Net Sales 0 0 $ Gross Profit Operating Expense O 0 0 0 0 0 0 0 0 0 0 + Total Operating Expenses Operating Income (Loss) 0 0 0 December 31, 2022 Account Title Credit S Debit 343.700 53,800 2.780 2 2 2 2 10,800 1.280 880,000 101,140 29,050 895,000 Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Prepaid Insurance Land Equipment Accumulated Depreciation Buildings Accounts Payable Interest Payable income Tax Payable Deferred Revenue Notes Payable (Long-term) Notes Payable (Current) Contingent Liability Warranty Liability Common Stock Treasury Stock Additional Pald-in Capital Retained Earnings Service Revenue Sales Revenue 24,600 1,700 16,400 8,800 826,129 586.404 15,800 7.800 158,000 204,000 1,249,800 20,150 46 400 158,000 15,800 7,800 158,000 204.000 1,249,800 20,150 46,400 158,000 540 500 Contingent Liability Warranty Liability Common Stock Treasury Stock Additional Paid-in Capital 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 40,400 19,150 1,450 33,500 3,350 11,523 4,300 16,400 7,600 2 2 2 + + 780 LOSS 7.800 15,800 2,652,313 $ Total $ 2,652,313
