Great Adventures Problem AP8-1 (GL) At the end of 2022, the following information is available for Great Adventures. - Additional interest for five months needs to be accrued on the $33,000,6% loan obtained on August 1, 2021. Recall that annual interest is paid each July 31. - Assume that $13,000 of the $33,000 loan discussed above is due next year. - By the end of the year, $20,000 in gift cards have been redeemed. The company had sold gift cards of $28,000 during the year and recorded those as Deferred Revenue. - Great Adventures is a defendant in litigation involving a biking accident during one of its adventure races. The company believes the likelihood of payment occurring is probable, and the estimated amount to be paid is $15,000. - For sales of MU watches, Great Adventures offers a warranty against defect for one year. At the end of the year, the company estimates future warranty costs to be $7,000. 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. Review the 'Trial Balance' as of December 31,2022 , in the 'Trial Balance' tab. 3. Prepare a multiple-step income statement for the period ended December 31,2022 , in the 'Income Statement' tab. 4. Prepare a classified balance sheet as of December 31,2022 , in the 'Balance Sheet' tab. 5. Record the closing entries in the 'General Journal' tab. Prepare the journal entries for transactions. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) Journal entry worksheet Additional interest for five months needs to be accrued on the $33,000,6% loan obtained on August 1,2021 . Recall that annual interest is paid each July 31 . Note: Enter debits before credits. Each journal entry is posted automatically to the general ledger. The unadjusted, adjusted, or post-ciosing balances will appear for each account, based on your selection. \begin{tabular}{|l|l|l|l|l|} \hline \multicolumn{4}{|c|}{ Sales Revenue } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & & & & 130,000 \\ \hline \end{tabular} \begin{tabular}{|l|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Sales Discounts } \\ \hline No. & Date & Dobit & Credit & Balance \\ \hline & & & & 500 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{6}{|c|}{ Interest Revenue } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & & & & 420 \\ \hline \end{tabular} \begin{tabular}{|l|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Cost of Goods Sold } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & & & & 40,000 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Depreciation Expense } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & & & & 18,750 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{5}{|c|}{ Supplies Expense } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & & & & 1,250 \\ \hline \end{tabular} \begin{tabular}{|l|c|c|c|c|} \hline \multicolumn{6}{|c|}{ Salaries Expense } \\ \hline No. & Date & Doble & Credit & Balance \\ \hline & & & & 31,500 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{3}{|c|}{ Bad Dobt Expense } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & & & & 3,150 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{4}{|c|}{ Interest Expense } \\ \hline No. & Date & Deblt & Credit & Balance \\ \hline & & & & 1,350 \\ \hline \end{tabular} \begin{tabular}{|l|l|l|l|c|} \hline \multicolumn{3}{|l|}{ Rent Expense } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & & & & 3,900 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{2}{|c|}{ Insurance Expense } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & & & & 7,200 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|} \hline \multicolumn{2}{|c|}{ Repalrs and Malntenance Expense } \\ \hline No. & Date & Debit & Credit & Balance \\ \hline & & & & 700 \\ \hline \end{tabular} ? Ceneral Journal Trial Balance ? 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. Prepare an income statement for the period ended December 31,2022 . Choose the appropriate accounts to complete the company's income statement. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection. Prepare a classified balance sheet as of December 31,2022 . Choose the appropriate accounts to complete the company's balance sheet. The unadjusted, adjusted, or post-closing balances will appear for each account, based on your selection
