A. How do I record the adjustment for entry?B. For what amount would MU inventory be reported in the December 31, 2022, balance sheet?C. Prepare an updated gross profit section of a partial income statement accounting for this additional information. **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 2022. All watches are sold for $500 each.- **Jul. 17** Purchased 50 watches for $7,500 ($150 per watch) on account.- **Jul. 31** Sold 40 watches for $20,000 cash.- **Aug. 12** Purchased 40 watches for $6,400 ($160 per watch) cash.- **Aug. 22** Sold 30 watches for $15,000 on account.- **Sep. 19** Paid for watches purchased on July 17.- **Sep. 27** Receive cash of $9,000 for watches sold on account on August 22.- **Oct. 27** Purchased 80 watches for $13,600 ($170 per watch) cash.- **Nov. 20** Sold 90 watches for $45,000 cash.- **Dec. 4** Purchased 100 watches for $18,000 ($180 per watch) on account.- **Dec. 8** Sold 40 watches for $20,000 on account.**2.** Late in December, the next generation of multiuse (MU II) watches is released. In addition to all of the features of the MU watch, the MU II watches are equipped with a global positioning system (GPS) and have the ability to download and play songs and videos off the Internet. The demand for the original MU watches is greatly reduced. As of December 31, the estimated net realizable value of MU watches is only $100 per watch.**a.** Record any necessary adjustment on December 31, 2022, related to this information. *(If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account ### Educational Content on Accounting Entries and Financial Statements---#### Required Information**Note:** Enter debits before credits.---#### General Journal Entry- **Date:** Dec. 31, 2022- **Columns:** - General Journal (Description of Transaction) - Debit (Amount) - Credit (Amount) - **Options:** - Record entry - Clear entry - View general journal---#### b. Inventory Reporting- **Question:** For what amount would MU inventory be reported in the December 31, 2022, balance sheet?- **Response Field:** [MU Inventory]---#### c. Gross Profit Section of Partial Income Statement**GREAT ADVENTURES, INC.**- **Document Title:** Partial Income Statement- **Timeframe:** For the Year Ended December 31, 2022- **Sections to Fill:** [Description/Amount Fields]- **Final Field:** Gross Profit [Amount Field]---This content guides users through recording journal entries and updating financial statements, key aspects in accounting practice. It assists with understanding the components necessary for accurate financial reporting.

A journal entry is a form of accounting entry that is used to report a business transaction in a…

Required Informatlon [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 molsture from kayakıng, raln, fishing, or even diving up to 100 feet won't damage them. Suzie decides to have MU watches avallable for sale at the start of each clinic. The following transactions relate to purchases and sales of watches during the second half of 2022. All watches are sold for $500 each. Jul. 17 Purchased 50 watches for $7,500 ($150 per watch) on account. Jul. 31 Sold 40 watches for $20,000 cash. Aug. 12 Purchased 40 watches for $6,400 ($160 per watch) cash. Aug. 22 Sold 30 watches for $15,000 on account Sep. 19 Paid for watches purchased on July 17. Sep. 27 Receive cash of $9, 000 for watches sold on account on August 22. Oct. 27 Purchased 80 watches for $13,600 ($170 per watch) cash. Nov. 20 Sold 90 watches for $45,000 cash. Dec. 4 Purchased 100 watches for $18,000 ($180 per watch) on account. 8 Sold 40 watches for $20,000 on account. Dec.

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q