Required information [The following information applies to the questions displayed below] Now that operations for outdoor clinics and TEAM events are running smoothly, Suzie thinks of another area for business expansion. She notices that a few clinic participants wear multiuse (MU) watches. Beyond the normal timekeeping features of most watches, MU watches are able to report temperature, altitude, and barometric pressure. MU watches are waterproof, so moisture from kayaking, rain, fishing, or even diving up to 100 feet won't damage them. Suzie decides to have MU watches available for sale at the start of each clinic. The following transactions relate to purchases and sales of watches during the second half of 2025. All watches are sold for $503 each. July 17 July 31 August 12 August 22 September 19 September 27 October 27 November 20 December 4 December 8 Purchased 53 watches for $8,109 ($153 per watch) on account. Sold 43 watches for $21,629 cash. Purchased 43 watches for $7,009 ($163 per watch) cash. Sold 33 watches for $16,599 on account. Paid for watches purchased on July 17. Receive cash of $10,800 for watches sold on account on August 22. Purchased 83 watches for $14,359 ($173 per watch) cash. Sold 93 watches for $46,779 cash. Purchased 106 watches for $19,398 ($183 per watch) on account. Sold 43 watches for $21,629 on account.
Required information [The following information applies to the questions displayed below] Now that operations for outdoor clinics and TEAM events are running smoothly, Suzie thinks of another area for business expansion. She notices that a few clinic participants wear multiuse (MU) watches. Beyond the normal timekeeping features of most watches, MU watches are able to report temperature, altitude, and barometric pressure. MU watches are waterproof, so moisture from kayaking, rain, fishing, or even diving up to 100 feet won't damage them. Suzie decides to have MU watches available for sale at the start of each clinic. The following transactions relate to purchases and sales of watches during the second half of 2025. All watches are sold for $503 each. July 17 July 31 August 12 August 22 September 19 September 27 October 27 November 20 December 4 December 8 Purchased 53 watches for $8,109 ($153 per watch) on account. Sold 43 watches for $21,629 cash. Purchased 43 watches for $7,009 ($163 per watch) cash. Sold 33 watches for $16,599 on account. Paid for watches purchased on July 17. Receive cash of $10,800 for watches sold on account on August 22. Purchased 83 watches for $14,359 ($173 per watch) cash. Sold 93 watches for $46,779 cash. Purchased 106 watches for $19,398 ($183 per watch) on account. Sold 43 watches for $21,629 on account.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Required information
[The following information applies to the questions displayed below.]
Now that operations for outdoor clinics and TEAM events are running smoothly, Suzie thinks of another area for business
expansion. She notices that a few clinic participants wear multiuse (MU) watches. Beyond the normal timekeeping features
of most watches, MU watches are able to report temperature, altitude, and barometric pressure. MU watches are
waterproof, so moisture from kayaking, rain, fishing, or even diving up to 100 feet won't damage them. Suzie decides to
have MU watches available for sale at the start of each clinic. The following transactions relate to purchases and sales of
watches during the second half of 2025. All watches are sold for $503 each.
July 17
July 31
August 12
August 22
Purchased 53 watches for $8,109 ($153 per watch) on account.
Sold 43 watches for $21,629 cash.
Purchased 43 watches for $7,009 ($163 per watch) cash.
Sold 33 watches for $16,599 on account.
September 19 Paid for watches purchased on July 17.
September 27 Receive cash of $10,800 for watches sold on account on August 22.
October 27
Purchased 83 watches for $14,359 ($173 per watch) cash.
November 20 Sold 93 watches for $46,779 cash.
December 4
December 8
Purchased 106 watches for $19,398 ($183 per watch) on account.
Sold 43 watches for $21,629 on account.
Required:
1-a. Calculate sales revenue, cost of goods sold, and ending inventory as of December 31, 2025, assuming Suzie uses a FIFO
perpetual inventory system to account for inventory.
1-b. Prepare the gross profit section of a partial income statement for transactions related to MU watches.
Complete this question by entering your answers in the tabs below.
Req la
Req 12
Prepare the gross profit section of a partial income statement for transactions related to MU watches.
GREAT ADVENTURES, INCORPORATED
Partial Income Statement
For the Year Ended December 31, 2025
S](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6d26575d-974f-4ef7-877e-fd0458b064d3%2F07585511-c6cd-465a-ad47-02c65dd42b27%2Fcl2uma_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
Now that operations for outdoor clinics and TEAM events are running smoothly, Suzie thinks of another area for business
expansion. She notices that a few clinic participants wear multiuse (MU) watches. Beyond the normal timekeeping features
of most watches, MU watches are able to report temperature, altitude, and barometric pressure. MU watches are
waterproof, so moisture from kayaking, rain, fishing, or even diving up to 100 feet won't damage them. Suzie decides to
have MU watches available for sale at the start of each clinic. The following transactions relate to purchases and sales of
watches during the second half of 2025. All watches are sold for $503 each.
July 17
July 31
August 12
August 22
Purchased 53 watches for $8,109 ($153 per watch) on account.
Sold 43 watches for $21,629 cash.
Purchased 43 watches for $7,009 ($163 per watch) cash.
Sold 33 watches for $16,599 on account.
September 19 Paid for watches purchased on July 17.
September 27 Receive cash of $10,800 for watches sold on account on August 22.
October 27
Purchased 83 watches for $14,359 ($173 per watch) cash.
November 20 Sold 93 watches for $46,779 cash.
December 4
December 8
Purchased 106 watches for $19,398 ($183 per watch) on account.
Sold 43 watches for $21,629 on account.
Required:
1-a. Calculate sales revenue, cost of goods sold, and ending inventory as of December 31, 2025, assuming Suzie uses a FIFO
perpetual inventory system to account for inventory.
1-b. Prepare the gross profit section of a partial income statement for transactions related to MU watches.
Complete this question by entering your answers in the tabs below.
Req la
Req 12
Prepare the gross profit section of a partial income statement for transactions related to MU watches.
GREAT ADVENTURES, INCORPORATED
Partial Income Statement
For the Year Ended December 31, 2025
S
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