At the end of 2022, the following information is available for Great Adventures.

• Additional interest for five months needs to be accrued on the $33,200, 6% loan obtained on August 1, 2021. Recall that annual interest is paid each July 31.
• Assume that $13,200 of the $33,200 loan discussed above is due next year.
• By the end of the year, $20,000 in gift cards have been redeemed. The company had sold gift cards of $28,200 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 $15,200.
• 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 $7,200. "Help me please fill all numbers and record events" 

 

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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.) No Date General Journal Debit Credit Dec 31 Interest Expense Interest Payable 1 830 830 Notes Payable (Long-term) Notes Payable (Current) 2 Dec 31 13,200 13,200 3 Dec 31 Deferred Revenue 20,000 Sales Revenue 20,000 Dec 31 Loss 15,200 Contingent Liability 15,200 Dec 31 Warranty Expense 7,200 Warranty Liability 7,200 Dec 31 Service Revenue Interest Revenue Sales Revenue Dec 31 No Journal Entry Required Supplies Expense Salaries Expense Interest Expense 4.

Answer rating: 100% (QA)

Complete Journal Entry Particulars Debit Credit Service Revenue Ac Interest Revenue View the full answer