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Great Adventures Saved Great Adventures Problem AP8-1 (GL) 1 At the end of 2022, the following information is available for Great Adventures

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Great Adventures Saved Great Adventures Problem AP8-1 (GL) 1 At the end of 2022, the following information is available for Great Adventures. 10 points Skipped • Additional interest for five months needs to be accrued on the $32,400, 6% loan obtained on August 1, 2021. Recall that annual interest is paid each July 31. Assume that $12,400 of the $32,400 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 $27,400 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 $14,400. • 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 $6,400. eBook References Income Requirement General Journal General Ledger Trial Balance Balance Sheet Statement 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. < Requirement General Journal > Adjusted 1 GREAT ADVENTURES, INC. Trial Balance December 31, 2022 Account Title Debit Credit 10 points S 89,430 52,400 Skipped 2,640 9,400 1,140 80.480 eBook References Cash Accounts Receivable Allowance for Uncollectible Accounts Inventory Prepaid Insurance Equipment Accumulated Depreciation Accounts Payable Income Tax Payable Deferred Revenue Notes Payable (Long-term) Common Stock Retained Earnings Service Revenue Sales Revenue Sales Discounts Interest Revenue Cost of Goods Sold Depreciation Expense Supplies Expense Salaries Expense Bad Debt Expense interest Expense Rent Expense Income Tax Expense Insurance Expense Repairs and Maintenance Expense Total 27,650 23,200 15,700 27,400 32,400 20,000 34,650 45,700 124,000 470 360 39,700 18,450 1,100 30,000 3,000 1,290 3,600 15,700 6,900 640 353,700 $ 353,700 < General Ledger Income Statement > Skipped Adjusted GREAT ADVENTURES, INC. Income Statement For the Period Ended December 31, 2022 eBook Revenues: References Net Sales Gross Profit Operating Expenses: Total Operating Expenses Operating Income (Loss) Income Before Income Taxes < Trial Balance Balance Sheet > Adjusted eBook GREAT ADVENTURES, INC. Balance Sheet December 31, 2022 References Assets Liabilities Current Assets: Current Liabilities: Total Current Liabilities Total Current Assets Total Liabilities Long-term Assets Stockholders' Equity Total Stockholders' Equity Total Liabilities and Stockholders'Equity Total Assets < Income Statement Balance Sheet> eBook Journal entry worksheet < 1 2 3 4 5 6 7 References Record the closing entry for expense and loss accounts. Note: Enter debits before credits. Date General Journal Dec 31 Debit Credit Record entry Clear entry View general journal Journal entry worksheet < 1 2 3 4 5 6 6 7 Record the closing entry for revenue accounts. Note: Enter debits before credits. General Journal Debit Credit Date Dec 31 Record entry Clear entry View general journal