Required information [The following information applies to the questions displayed below.] At the end of 2025, the following information is available for Great Adventures. • Additional interest for five months needs to be accrued on the $30,000, 6% note payable obtained on August 1, 2024. Recall that annual interest is paid each July 31. • Assume that $10,000 of the $30,000 note discussed above is due next year. Record the entry to reclassify the current portion of the long-term note. By the end of the year, $20,000 in gift cards have been redeemed. The company had sold gift cards of $25,000 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 $12,000. • 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 $4,000. Required: 1. Record each of the transactions above on December 31, 2025. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Required information [The following information applies to the questions displayed below.] At the end of 2025, the following information is available for Great Adventures. • Additional interest for five months needs to be accrued on the $30,000, 6% note payable obtained on August 1, 2024. Recall that annual interest is paid each July 31. • Assume that $10,000 of the $30,000 note discussed above is due next year. Record the entry to reclassify the current portion of the long-term note. By the end of the year, $20,000 in gift cards have been redeemed. The company had sold gift cards of $25,000 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 $12,000. • 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 $4,000. Required: 1. Record each of the transactions above on December 31, 2025. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Subject: acounting
![Required information
[The following information applies to the questions displayed below.]
At the end of 2025, the following information is available for Great Adventures.
• Additional interest for five months needs to be accrued on the $30,000, 6% note payable obtained on August 1, 2024.
Recall that annual interest is paid each July 31.
• Assume that $10,000 of the $30,000 note discussed above is due next year. Record the entry to reclassify the current
portion of the long-term note.
• By the end of the year, $20,000 in gift cards have been redeemed. The company had sold gift cards of $25,000 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 $12,000.
• 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 $4,000.
Required:
1. Record each of the transactions above on December 31, 2025. (If no entry is required for a transaction/event, select "No Journal
Entry Required" in the first account field.)
View transaction list
Journal entry worksheet
<
1
2
3
Date
December 31
Note: Enter debits before credits.
4
Assume that $10,000 of the $30,000 note discussed above is due next year.
Record the entry to reclassify the current portion of the long-term note.
5
General Journal
Debit
Credit
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Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
At the end of 2025, the following information is available for Great Adventures.
• Additional interest for five months needs to be accrued on the $30,000, 6% note payable obtained on August 1, 2024.
Recall that annual interest is paid each July 31.
• Assume that $10,000 of the $30,000 note discussed above is due next year. Record the entry to reclassify the current
portion of the long-term note.
• By the end of the year, $20,000 in gift cards have been redeemed. The company had sold gift cards of $25,000 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 $12,000.
• 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 $4,000.
Required:
1. Record each of the transactions above on December 31, 2025. (If no entry is required for a transaction/event, select "No Journal
Entry Required" in the first account field.)
View transaction list
Journal entry worksheet
<
1
2
3
Date
December 31
Note: Enter debits before credits.
4
Assume that $10,000 of the $30,000 note discussed above is due next year.
Record the entry to reclassify the current portion of the long-term note.
5
General Journal
Debit
Credit
>
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