Tony and Suzie have purchased land for a new camp. Now they need money to build the cabins, dining facility, a ropes course, and an outdoor swimming pool. Tony and Suzie first checked with Summit Bank to see if they could borrow an additional $1 million, but unfortunately the bank turned them down as too risky. Undeterred, they promoted their idea to close friends they had made through the outdoor clinics and TEAM events. They decided to go ahead and sell shares of stock in the company to raise the additional funds for the camp. Great Adventures has authorized $1 par value common stock. When the company began on July 1, 2024, Tony and Suzie each purchased 10,000 shares (20,000 shares total) of $1 par value common stock at $1 per share. The following transactions affect stockholders' equity during the remainder of 2025: November 5 Issue an additional 116,000 shares of common stock for $10 per share. November 16 Purchase 11,600 shares of its own common stock (i.e., treasury stock) for $23 per share. November 24 Resell 5,600 shares of treasury stock at $24 per share. December 1 Declare a cash dividend on its common stock of $13,000 ($0.10 per share) to all stockholders of record on December 15. December 20 Pay the cash dividend declared on December 1. December 30 Pay $840,000 for construction of new cabins and other facilities. The entire expenditure is recorded in the Buildings account. VP10-1 (Algo) Great Adventures Continuing Case Part 2 Great Adventures has net income of $38,560 in 2025. Retained earnings at the beginning of 2025 was $34,250. Prepare stockholders' equity section of the balance sheet for Great Adventures as of December 31, 2025. (Amounts to be ducted should be indicated with a minus sign.)
Tony and Suzie have purchased land for a new camp. Now they need money to build the cabins, dining facility, a ropes course, and an outdoor swimming pool. Tony and Suzie first checked with Summit Bank to see if they could borrow an additional $1 million, but unfortunately the bank turned them down as too risky. Undeterred, they promoted their idea to close friends they had made through the outdoor clinics and TEAM events. They decided to go ahead and sell shares of stock in the company to raise the additional funds for the camp. Great Adventures has authorized $1 par value common stock. When the company began on July 1, 2024, Tony and Suzie each purchased 10,000 shares (20,000 shares total) of $1 par value common stock at $1 per share. The following transactions affect stockholders' equity during the remainder of 2025: November 5 Issue an additional 116,000 shares of common stock for $10 per share. November 16 Purchase 11,600 shares of its own common stock (i.e., treasury stock) for $23 per share. November 24 Resell 5,600 shares of treasury stock at $24 per share. December 1 Declare a cash dividend on its common stock of $13,000 ($0.10 per share) to all stockholders of record on December 15. December 20 Pay the cash dividend declared on December 1. December 30 Pay $840,000 for construction of new cabins and other facilities. The entire expenditure is recorded in the Buildings account. VP10-1 (Algo) Great Adventures Continuing Case Part 2 Great Adventures has net income of $38,560 in 2025. Retained earnings at the beginning of 2025 was $34,250. Prepare stockholders' equity section of the balance sheet for Great Adventures as of December 31, 2025. (Amounts to be ducted should be indicated with a minus sign.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Tony and Suzie have purchased land for a new camp. Now they need money to build the cabins, dining
facility, a ropes course, and an outdoor swimming pool. Tony and Suzie first checked with Summit Bank to
see if they could borrow an additional $1 million, but unfortunately the bank turned them down as too risky.
Undeterred, they promoted their idea to close friends they had made through the outdoor clinics and
TEAM events. They decided to go ahead and sell shares of stock in the company to raise the additional
funds for the camp.
Great Adventures has authorized $1 par value common stock. When the company began on July 1, 2024,
Tony and Suzie each purchased 10,000 shares (20,000 shares total) of $1 par value common stock at $1
per share. The following transactions affect stockholders' equity during the remainder of 2025:
November 5 Issue an additional 116,000 shares of common stock for $10 per share.
November 16 Purchase 11,600 shares of its own common stock (i.e., treasury stock) for $23 per
share.
November 24 Resell 5,600 shares of treasury stock at $24 per share.
December 1 Declare a cash dividend on its common stock of $13,000 ($0.10 per share) to all
stockholders of record on December 15.
December 20 Pay the cash dividend declared on December 1.
December 30 Pay $840,000 for construction of new cabins and other facilities. The entire
expenditure is recorded in the Buildings account.
RWP10-1 (Algo) Great Adventures Continuing Case Part 2
2. Great Adventures has net income of $38,560 in 2025. Retained earnings at the beginning of 2025 was $34,250. Prepare
the stockholders' equity section of the balance sheet for Great Adventures as of December 31, 2025. (Amounts to be
deducted should be indicated with a minus sign.)
GREAT ADVENTURES, INCORPORATED
Balance Sheet
(Stockholders' Equity Section)
December 31, 2025
Stockholders' Equity:
Total Paid-in Capital
Total Stockholders' Equity
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