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

Additional interest for five months needs to be accrued on the $32,800, 6% loan obtained on August 1, 2021. Recall that annual interest is paid each July 31.

Assume that $12,800 of the $32,800 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 $27,800 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 $14,800.

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 $6,800.

Additional interest for five months needs to be accrued on the $32,800, 6% loan obtained on August 1, 2021. Recall that annual interest is paid each July 31.

Assume that $12,800 of the $32,800 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 $27,800 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 $14,800.

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 $6,800.

Record the closing entry for revenue accounts. Record the closing entry for expense and loss accounts. Record each transaction in the general journal, create a multiple-step income statement, prepare a balance sheet, record the closing entries .

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