General General Require... Journal Ledger ✓ Answer is not complete. Trial Income Balance Balance Stateme... Sheet 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.) No 1 Date Nov 01 General Journal Land Debit 540,000✓ Credit Notes Payable (Current) × 540,000 2 Nov 30 Notes Payable (Long-term) 3,295 Interest Expense 2,700 Cash 5,995 3 Dec 31 Notes Payable (Long-term) 3,439X Interest Expense 2,556X Cash 5,995 4 Dec 31 Notes Payable (Current) ☑ 41,054 Notes Payable (Long-term) × 41,054 5 Dec 31 Service Revenue 3,250X Notes Payable (Current) × 2,745X 6 Dec 31 Interest Expense ✓ 540X Interest Payable ☑ 540X Loss 5,045X Notes Payable (Current) ☑ 5,585X Prepare an income statement for the period ended December 31, 2022. Choose the appropriate accounts to complete the company's income statement. The unadjusted, or post-closing balances will appear for each account, based on your selection. Post-closi GREAT ADVENTURES, INC. Income Statement For the period ended December 31, 2022 Revenue: Notes Payable (Current) Service Revenue ✓ 512,786 41,450 0 0 Net sales 554,236 Cost of Goods Sold 38,700 $ Gross profit Expense: ■ Notes Payable (Long-term) X54,720 Supplies Expense 600 Warranty Expense Salaries Expense 4,400 25,000 Repairs and Maintenance 440 Expense Rent Expense Bad Debt Expense 330 2,600 Advertising expense ☑ 2,500 0 Total operating expenses Operating income Loss Income before Income Taxes Income Tax Expense Net Income Dates: Nov 01 Show less to: Dec 31 515 536 Assessment Tool iFrame 90,260 425,276 × 17,445 0 442,721 14,700 $ 428,021

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Tony’s favorite memories of his childhood were the times he spent with his dad at camp. Tony was daydreaming of those days a bit as he and Suzie jogged along a nature trail and came across a wonderful piece of property for sale. He turned to Suzie and said, “I’ve always wanted to start a camp where families could get away and spend some quality time together. If we just had the money, I know this would be the perfect place.” On November 1, 2022, Great Adventures purchased the land by issuing a $540,000, 6%, 10-year installment note to the seller. Payments of $5,995 are required at the end of each month over the life of the 10-year loan. Each monthly payment of $5,995 includes both interest expense and principal payments (i.e., reduction of the loan amount).

Late that night Tony exclaimed, “We now have land for our new camp; this has to be the best news ever!” Suzie said, “There’s something else I need to tell you. I’m expecting!” They decided right then, if it was a boy, they would name him Venture.