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 an

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.$

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.$)$

Journal entry worksheet

$1$

$2$

$3$

$4$

$5$

$6$

$7$

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 $31.$ Record the adjusting entry.

Note: Enter debits before credits.