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Record the closing entry for revenue accounts.

Record the closing entry for revenue accounts.

FINANCIAL ACCOUNTING
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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Hh.83.

 

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 $30,800, 6% loan obtained on August 1, 2021. Recall that annual interest is paid each July 31. • Assume that $10,800 of the $30,800 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 $25,800 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 $12,800. • 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 $4,800. Show Transcribed Text Journal entry worksheet 1 2 3 Date Dec 31 Note: Enter debits before credits. 4 Record the closing entry for revenue accounts. 5 Service Revenue Interest Revenue Sales Revenue Retained Earnings General Journal C 6 7 Debit Credit
Transcribed Image Text: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 $30,800, 6% loan obtained on August 1, 2021. Recall that annual interest is paid each July 31. • Assume that $10,800 of the $30,800 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 $25,800 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 $12,800. • 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 $4,800. Show Transcribed Text Journal entry worksheet 1 2 3 Date Dec 31 Note: Enter debits before credits. 4 Record the closing entry for revenue accounts. 5 Service Revenue Interest Revenue Sales Revenue Retained Earnings General Journal C 6 7 Debit Credit
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