At the end of 2025, the following information is available for Great Adventures. Additional interest...
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At the end of 2025, the following information is available for Great Adventures. • Additional interest for five months needs to be accrued on the $36,000, 6% note payable obtained on August 1, 2024. Recall that annual interest is paid each July 31. . • Assume that $12,000 of the $36,000 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, $22,000 in gift cards have been redeemed. The company had sold gift cards of $23,200 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 $14,000. . • 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 $5,000. 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.) Journal entry worksheet 2 Assume that $12,000 of the $36,000 note discussed above is due next year. Record the entry to reclassify the current portion of the long-term note. 3 Note: Enter debits before credits. Date December 31 Record entry General Journal Clear entry Debit Credit View general journal 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 < 3 By the end of the year, $22,000 in gift cards have been redeemed. The company had sold gift cards of $23,200 during the year and recorded those as Deferred Revenue. Record the adjusting entry. Note: Enter debits before credits. Date December 31 Record entry General Journal Clear entry Debit ca Credit View general journal 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 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 $5,000. Record the adjusting entry. Note: Enter debits before credits. Date December 31 Record entry General Journal Clear entry < Prev Debit Credit View general Journal (5) 12 of 2 Next > 2 Part 2 of 2 25 points eBook Print References • For sales of MU watches, Great Adventures ofers a warranty against delect for one year. At the end of the year, the company estimates future warranty costs to be $5,000. 2. If the likelihood of payment for the litigation is determined to be reasonably possible, what should Great Adventures record for this possible payment. (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 Record the possible payment for a litigation whose likelihood of payment is determined to be reasonably possible. Note: Enter debits before credits. Date December 31 Record entry General Journal Clear entry Debit Credit View general journal At the end of 2025, the following information is available for Great Adventures. • Additional interest for five months needs to be accrued on the $36,000, 6% note payable obtained on August 1, 2024. Recall that annual interest is paid each July 31. . • Assume that $12,000 of the $36,000 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, $22,000 in gift cards have been redeemed. The company had sold gift cards of $23,200 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 $14,000. . • 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 $5,000. 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.) Journal entry worksheet 2 Assume that $12,000 of the $36,000 note discussed above is due next year. Record the entry to reclassify the current portion of the long-term note. 3 Note: Enter debits before credits. Date December 31 Record entry General Journal Clear entry Debit Credit View general journal 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 < 3 By the end of the year, $22,000 in gift cards have been redeemed. The company had sold gift cards of $23,200 during the year and recorded those as Deferred Revenue. Record the adjusting entry. Note: Enter debits before credits. Date December 31 Record entry General Journal Clear entry Debit ca Credit View general journal 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 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 $5,000. Record the adjusting entry. Note: Enter debits before credits. Date December 31 Record entry General Journal Clear entry < Prev Debit Credit View general Journal (5) 12 of 2 Next > 2 Part 2 of 2 25 points eBook Print References • For sales of MU watches, Great Adventures ofers a warranty against delect for one year. At the end of the year, the company estimates future warranty costs to be $5,000. 2. If the likelihood of payment for the litigation is determined to be reasonably possible, what should Great Adventures record for this possible payment. (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 Record the possible payment for a litigation whose likelihood of payment is determined to be reasonably possible. Note: Enter debits before credits. Date December 31 Record entry General Journal Clear entry Debit Credit View general journal
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Make the journal entries to record the transactions for Great Adventures on December 31 2025 Accruin... View the full answer
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