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RWP8-1 (Algo) Great Adventures Continuing Case (GL) At the end of 2025, the following information is available for Great Adventures. Additional interest for five months needs to be accrued on the $31,200, 6% note payable obtained on August 1, 2024. Recall that annual interest is paid each July 31. Assume that $11,200 of the $31,200 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 $26,200 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 $13,200. 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 $5,200. Requirement General Journal General Ledger Trial Balance Income Statement Balance 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.) View transaction list Journal entry worksheet 1 2 3 5 Record the closing entry for revenue accounts. Note: Enter debits before credits. 6 7 > Date December 31 General Journal Debit Credit Sales Revenue Interest Revenue Service Revenue Retained Earnings Record entry Clear entry View general journal

RWP8-1 (Algo) Great Adventures Continuing Case (GL) At the end of 2025, the following information is available for Great Adventures. Additional interest for five months needs to be accrued on the $31,200, 6% note payable obtained on August 1, 2024. Recall that annual interest is paid each July 31. Assume that $11,200 of the $31,200 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 $26,200 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 $13,200. 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 $5,200. Requirement General Journal General Ledger Trial Balance Income Statement Balance 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.) View transaction list Journal entry worksheet 1 2 3 5 Record the closing entry for revenue accounts. Note: Enter debits before credits. 6 7 > Date December 31 General Journal Debit Credit Sales Revenue Interest Revenue Service Revenue Retained Earnings Record entry Clear entry View general journal

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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RWP8-1 (Algo) Great Adventures Continuing Case (GL) At the end of 2025, the following information is available for Great Adventures. Additional interest for five months needs to be accrued on the $31,200, 6% note payable obtained on August 1, 2024. Recall that annual interest is paid each July 31. Assume that $11,200 of the $31,200 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 $26,200 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 $13,200. 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 $5,200. Requirement General Journal General Ledger Trial Balance Income Statement Balance 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.) View transaction list Journal entry worksheet < 1 2 3 5 6 7 > Record the closing entry for revenue accounts. Note: Enter debits before credits. Date December 31 General Journal Debit Credit Sales Revenue Interest Revenue Service Revenue Retained Earnings Record entry Clear entry View general journal
Transcribed Image Text:RWP8-1 (Algo) Great Adventures Continuing Case (GL) At the end of 2025, the following information is available for Great Adventures. Additional interest for five months needs to be accrued on the $31,200, 6% note payable obtained on August 1, 2024. Recall that annual interest is paid each July 31. Assume that $11,200 of the $31,200 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 $26,200 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 $13,200. 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 $5,200. Requirement General Journal General Ledger Trial Balance Income Statement Balance 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.) View transaction list Journal entry worksheet < 1 2 3 5 6 7 > Record the closing entry for revenue accounts. Note: Enter debits before credits. Date December 31 General Journal Debit Credit Sales Revenue Interest Revenue Service Revenue Retained Earnings Record entry Clear entry View general journal
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