2. Great Adventures has net income of $40,944 in 2025. Retained earnings at the beginning of 2025 was $34,950. Prepare the stockholders' equity section of the balance sheet for Great Adventures as of December 31, 2025. (Amounts to be deducted should be indicated with a minus sign.)
2. Great Adventures has net income of $40,944 in 2025. Retained earnings at the beginning of 2025 was $34,950. Prepare the stockholders' equity section of the balance sheet for Great Adventures as of December 31, 2025. (Amounts to be deducted should be indicated with a minus sign.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please explain proper steps by Step and Do Not Give Solution In Image Format ? And fast answering please ?
![Algo) Great Adventures Continuing Case
[The following information applies to the questions displayed below.]
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, 2024, 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 2025:
November 5 Issue an additional 130,000 shares of common stock for $10 per share.
November 16 Purchase 13,000 shares of its own common stock (i.e., treasury stock) for $30 per share.
November 24 Resell 7,000 shares of treasury stock at $31 per share.
December 1
Declare a cash dividend on its common stock of $14,400 ($0.10 per share) to all stockholders of
record on December 15.
December 20
Pay the cash dividend declared on December 1.
December 30 Pay $875,000 for construction of new cabins and other facilities. The entire expenditure is
recorded in the Buildings account.
RWP10-1 (Algo) Great Adventures Continuing Case Part 2](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0a0d09e1-1dd0-4be7-9867-3de7f07d39b9%2F9efeae70-1896-4f77-ad8c-a4386cb49821%2Fayhil8b_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Algo) Great Adventures Continuing Case
[The following information applies to the questions displayed below.]
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, 2024, 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 2025:
November 5 Issue an additional 130,000 shares of common stock for $10 per share.
November 16 Purchase 13,000 shares of its own common stock (i.e., treasury stock) for $30 per share.
November 24 Resell 7,000 shares of treasury stock at $31 per share.
December 1
Declare a cash dividend on its common stock of $14,400 ($0.10 per share) to all stockholders of
record on December 15.
December 20
Pay the cash dividend declared on December 1.
December 30 Pay $875,000 for construction of new cabins and other facilities. The entire expenditure is
recorded in the Buildings account.
RWP10-1 (Algo) Great Adventures Continuing Case Part 2
Transcribed Image Text:2. Great Adventures has net income of $40,944 in 2025. Retained earnings at the beginning of 2025 was $34,950. Prepare the
stockholders' equity section of the balance sheet for Great Adventures as of December 31, 2025. (Amounts to be deducted should be
indicated with a minus sign.)
GREAT ADVENTURES, INCORPORATED
Balance Sheet
(Stockholders' Equity Section).
December 31, 2025
Stockholders' Equity:
Total Paid-in Capital
Total Stockholders' Equity
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