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  3. at the end of 2025, the following information is a

At the end of 2025, the following information is available for Great Adventures. ...

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Accounting

At the end of 2025, the following information is available for Great Adventures.

Additional interest for five months needs to be accrued on the $33,400, 6% note payable obtained on August 1, 2024. Recall that annual interest is paid each July 31.

Assume that $13,400 of the $33,400 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 $28,400 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 $15,400.

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 $7,400.

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