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Now that operations for outdoor clinics and TEAM events are running smoothly, Suzie thinks of another area for business expansion. She notices that a few clinic participants wear multiuse $($MU$)$ watches. Beyond the normal timekeeping features of most watches, MU watches are able to report temperature, altitude, and barometric pressure. MU watches are waterproof, so moisture from kayaking. rain, fishing, or even diving up to $100$ feet won't damage them. Suzie decides to have MU watches available for sale at the start of each clinic. The following transactions relate to purchases and sales of watches during the second half of $2025.$ All watches are sold for $$820$ each.Late in December, the next generation of multiuse $($ MU II$)$ watches is released. In addition to all of the features of the MU watch, the MU II watches are equipped with a global positioning system $($GPS$)$ and have the ability to download and play songs and videos off the Internet. The demand for the original MU watches is greatly reduced. As of December $31,$ the estimated net realizable value of MU watches is only $$100$ per watch.

$\backslash$table$[[$Requirement

$\backslash$table$[[$General$],[$Journal$]]$

$\backslash$table$[[$General$],[$Ledger$]],$Trial Balance,$\backslash$table$[[$Income$],[$Statement$]],$Balance Sheet$]]$

Record each of the transactions listed above in the 'General Journal' tab $($these are shown as items $1$ to $14).$ Review the 'General Ledger' and the 'Trial Balance' tabs to see the effect of the transactions on the account balances.

Record adjusting entries on December $31,2025,$ in the 'General Journal' tab.

Review the adjusted 'Trial Balance' as of December $31,2025.$

Prepare an income statement for the period ended December $31,2025,$ in the 'Income Statement' tab.

Prepare a classified balance sheet as of December $31,2025$ in the 'Balance Sheet' tab.

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