Question

Required information Great Adventures Problem AP5-1 The following information applies to the questions displayed below. Tony and Suzie are ready to expand Great Adventures even further in 2022. Tony believes that many groups in the community (for example, Boy Scouts, church groups, civic groups, and local businesses) would like to hold one-day outings for their members. Groups would engage in outdoor activities such as rock climbing, fishing, capture the flag. paintball, treasure hunts, scavenger hunts, nature hikes, and so on. The purpose of these one-day events would be for each member of the group to learn the importance of TEAM (Together Everyone Achieves More). Tony knows that most people are not familiar with these types of activities, so to encourage business he allows groups to participate in the event before paying. He offers a 5% quick-payment discount to those that pay within 10 days after the event. He also guarantees that at least eight hours of outdoor activities will be provided or the customer will receive a 20% discount. For the first six months of the year, the following activities occur for TEAM operations. Jan. 24 Great Adventure purchase outdoor gear such as ropes, helmets, harnesses, compasses, and other miscellaneous equipment for $4,500 cash. Feb. 25 Mr. Kendall's Boy Scout troop participates in a one-day TEAM adventure. Normally, Tony would charge a group of this size $3,000, but he wants to encourage kids to exercise more and enjoy the outdoors so he charges the group only $2,500. Great Adventures provides thene services on account. Feb. 28 The Boy Scout troop pays the full amount owed, less the 58 quick-payment discount. Mar. 19 Reynold's Management has its employees participate in a one-day EAN adventure. Creat Adventures provides services on account for $3,500, and Reynold's agrees to pay within 30 days. Mar. 27 Reynolds payo the full amount owed, less the 58 quick-payment discount. Apr. 7 Several men from the Elks Lodge decide to participate in a EAN adventure. They pay $7,000, and the event is scheduled for the following week. Apr. 14 The TEAM adventure in held for members of the Elks Lodge. Apr. 30 Myers Manufacturing participate in a TEAM adventure. Great Adventures provides services on account for $5,500, and Myers agrees to pay within 30 days. May 31 Myers Manufacturing fails to pay the amount owed within the specified period and agrees to sign a three month, 88 note receivable to replace the exiating account receivable. Jun. 15 Several MBA groups participate in EAN adventures. Great Adventures provides services on account for $21, 500 to these groups, with payment due in July. Great Adventures Problem AP5-1 Part 1 Required: 1. Record TEAM adventure transactions occurring during the first six months of 2022. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

Answer 1

Journal Entry
Sr.No.	Date	Particulars	Debit	Credit
1	24-01-2022	Equipment	$4,500
		Cash		$4,500
		(To record purchase for equipment)
2	25-02-2022	Accounts Receivable	$2,500
		Service Revenue		$2,500
		(To record service revenue)
3	28-02-2022	Cash	$2,375
		Discount on service revenue	$125		[$2500 x 5%]
		Accounts Receivable		$2,500
		(To record payment received)
4	19-03-2022	Accounts Receivable	$3,500
		Service Revenue		$3,500
		(To record service revenue)
5	27-03-2022	Cash	$3,325
		Discount on service revenue	$175		[$3500 x 5%]
		Accounts Receivable		$3,500
		(To record payment received)
6	07-04-2022	Cash	$7,000
		Unearned Service Revenue		$7,000
		(To record payment received in advance)
7	14-04-2022	Unearned Service Revenue	$7,000
		Service Revenue		$7,000
		(To record service revenue)
8	30-04-2022	Accounts Receivable	$5,500
		Service Revenue		$5,500
		(To record service revenue)
9	31-05-2022	Notes Receivable	$5,500
		Accounts Receivable		$5,500
		(To record notes receivable)
10	15-06-2022	Accounts Receivable	$21,500
		Service Revenue		$21,500
		(To record service revenue)