At the end of 2022, the following information is available for Great Adventures. • Additional interest for five months needs to be accrued on the $34,000, 6% loan obtained on August 1, 2021. Recall that annual interest is paid each July 31. • Assume that $14,000 of the $34,000 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 $29,000 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 $16,000. • 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 $8,000. Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet 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. < Requirement 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. General Journal >

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter19: Lease And Intermediate-term Financing
Section: Chapter Questions
Problem 17P
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At the end of 2022, the following information is available for Great Adventures.
• Additional interest for five months needs to be accrued on the $34,000, 6% loan obtained on August 1, 2021. Recall that annual
interest is paid each July 31.
• Assume that $14,000 of the $34,000 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 $29,000 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 $16,000.
• 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 $8,000.
Requirement
General
Journal
General
Ledger
Trial Balance
Income
Statement
Balance Sheet
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.
Requirement
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.
General Journal >
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 $34,000, 6% loan obtained on August 1, 2021. Recall that annual interest is paid each July 31. • Assume that $14,000 of the $34,000 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 $29,000 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 $16,000. • 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 $8,000. Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet 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. Requirement 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. General Journal >
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