Question: Please write it out so I will be able to see the whole thing. At the end of 2022, the following information is available for

 Please write it out so I will be able to seethe whole thing. At the end of 2022, the following information isavailable for Great Adventures. Additional interest for five months needs to beaccrued on the $30,000, 6% loan obtained on August 1, 2021. Recallthat annual interest is paid each July 31. Assume that $10,000 ofthe $30,000 loan discussed above is due next year. By the endof the year, $20,000 in gift cards have been redeemed. The companyhad sold gift cards of $25,000 during the year and recorded thoseas Deferred Revenue. Great Adventures is a defendant in litigation involving abiking accident during one of its adventure races. The company believes thelikelihood of payment occurring is probable, and the estimated amount to be

Please write it out so I will be able to see the whole thing.

At the end of 2022, the following information is available for Great Adventures. Additional interest for five months needs to be accrued on the $30,000, 6% loan obtained on August 1, 2021. Recall that annual interest is paid each July 31. Assume that $10,000 of the $30,000 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 $25,000 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 $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. Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet 1. Record each of the transactions listed above in the 'General Journal' tab. Review the 'General Ledger' and the 'Trial Balance' tabs to see the effect of the transactions on the account balances. 2. Review the 'Trial Balance' as of December 31, 2022, in the 'Trial Balance' tab. 3. Prepare a multiple-step income statement for the period ended December 31, 2022, in the 'Income Statement' tab. 4. Prepare a classified balance sheet as of December 31, 2022, in the 'Balance Sheet' tab. 5. Record the closing entries in the 'General Journal' tab. Journal entry worksheet - 3 4 5 6 7 Record the accrued interest on note. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31 Record entry Clear entry View general journal Journal entry worksheet 3 4 5 6 7 Record the reclassified portion of long-term debt as current. Note: Enter debits before credits. Date General Journal Debit Credit Dec 31 Record entry Clear entry View general journal Journal entry worksheet Record the redeemed of gift cards. Note: Enter debits before credits. General Journal Debit Credit Date Dec 31 Record entry Clear entry View general journal Journal entry worksheet

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!