At the end of 2022, the following information is available for Great Adventures. Additional interest for five months needs to be accrued on the $31,800, 6% loan obtained on August 1, 2021. Recall that annual interest is paid each July 31. Assume that $11,800 of the $31,800 loan discussed above is due next year. By the end of the year, $20,000 in gift cards have been redeemed. The compar had sold gift cards of $26,800 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 $13,800. For sales of MU watches, Great Adventures offers a warranty against defe for one year. At the end of the year, the company estimates future warranty costs to be $5,800.
At the end of 2022, the following information is available for Great Adventures. Additional interest for five months needs to be accrued on the $31,800, 6% loan obtained on August 1, 2021. Recall that annual interest is paid each July 31. Assume that $11,800 of the $31,800 loan discussed above is due next year. By the end of the year, $20,000 in gift cards have been redeemed. The compar had sold gift cards of $26,800 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 $13,800. For sales of MU watches, Great Adventures offers a warranty against defe for one year. At the end of the year, the company estimates future warranty costs to be $5,800.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:At the end of 2022, the following information is available for Great Adventures. Additional interest for five months needs to be accrued on the $31,800, 6% loan obtained on August 1, 2021. Recall
that annual interest is paid each July 31. Assume that $11,800 of the $31,800 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 $26,800 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 $13,800. 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 $5,800.
Transcribed Image Text:Requirement
View transaction list
General
Journal
<
Journal entry worksheet
1
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.)
General
Ledger
2
Date
Dec 31
3
Trial Balance
Note: Enter debits before credits.
4 5
Income
Statement
6
General Journal
Additional interest for five months needs to be accrued on the $31,800, 6%
loan obtained on August 1, 2021. Recall that annual interest is paid each July
31.
7
Balance Sheet
Debit
Credit
>
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