80.2K

Verified Solution

Link Copied!

please please help thank you so much!

Great Adventures Problem AP9-1 (GL) Tony's favorite memories of his childhood were the times he spent with his dad at camp. Tony was daydreaming of those days a bit as he and Suzie jogged along a nature trail and came across a wonderful piece of property for sale. He turned to Suzie and said, I've always wanted to start a camp where families could get away and spend some quality time together. If we just had the money, I know this would be the perfect place. On November 1, 2022, Great Adventures purchased the land by issuing a $500,000, 6%, 10-year installment note to the seller. Payments of $5,551 are required at the end of each month over the life of the 10-year loan. Each monthly payment of $5,551 includes both interest expense and principal payments (i.e., reduction of the loan amount). Late that night Tony exclaimed, We now have land for our new camp; this has to be the best news ever! Suzie said, There's something else I need to tell you. I'm expecting! They decided right then, if it was a boy, they would name him Venture. Requirement General Journal General Ledger Trial Balance Income Statement Balance Sheet Prepare the journal entries for transactions. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) 1 Record the issuance of the long-term note payable for the purchase of land on November 1, 2022. 2 Record the first monthly payment on the long-term note payable, made on November 30, 2022. 3 Record the second monthly payment on the long-term note payable, made on December 31, 2022. 4 The 12 monthly payments in 2023 (following year) will reduce the note's balance by an additional $38,014. Record the reclassification of this amount from long-term notes payable to current notes payable. 5 Prepare the closing entry for revenue accounts. 5 Prepare the closing entry for revenue accounts. 6 Prepare the closing entry for expense and loss accounts. Note : = journal entry has been entered

Answer & Explanation Solved by verified expert

See Answer