Question

Required information Great Adventures Problem AP10-1 {The following information applies to the questions displayed below) of 2 Tony and Suzie have purchased land for a new camp. Now they need money to build the cabins, dining facility, a ropes course, and an outdoor swimming pool, Tony and Suzie first checked with Summit Bank to see if they could borrow an additional $1 million, but unfortunately the bank turned them down as too risky. Undeterred, they promoted their idea to close friends they had made through the outdoor clinics and TEAM events. They decided to go ahead and sell shares of stock in the company to raise the additional funds for the camp Great Adventures has authorized $1 par value common stock. When the company began on July 1, 2021, Tony and Suzie each purchased 10,000 shares (20,000 shares total) of $1 par value common stock at $1 per share. The following transactions affect stockholders' equity during the remainder of 2022 November 5 Issue an additional 104,000 shares of common stock for $10 per share. Tovember 16 Purchase 10.400 shares of its own cowon stock (1.., treasury stock) for $17 per share. November 24 Resell 4,400 shares of treasury stock at $18 per share. Declare a cash dividend on its common stock of $11,880 (56.10 per share) to all stockholders of record on December 15. December 20 Pay the cash dividend declared on December 1. December 3 Pay 5810,000 for construction of new cabins and other facilities. The entire expenditure is recorded in the Buildings account Great Adventures Problem AP10-1 Part 1 Required: 1. Record each of these transactions. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) V uclist

Answer 1

1. Journal entries

Date	Ledger	Debit	Credit
Nov-05	Cash	1,040,000
	Common Stock		104,000
	Additional paid in capital		936,000
	(Issue of additional 104,000 share of common stock for $10 per share (par value of $1)
Nov-16	Treasury stock	176,800
	Cash		176,800
	(Purchase 10,400 shares of its common stock for $17 per share)
Nov-24	Cash	79,200
	Treasury stock		74,800
	Additional paid in capital		4,400
	(Resell of 4,400 treasury stock for $18 per share. Since the treasury shares are sold at higher price than its cost, the difference of $1 per share ($18-$17) is credited to additional paid in capital)
Dec-1	Dividends	11,880
	Dividend payable		11,880
	(Cash dividend is declared)
Dec-20	Dividend payable	11,880
	Cash		11,880
	(Dividend declared on December 1 is paid in cash)
Dec-31	Buildings	810,000
	Cash		810,000
	(Amount paid for construction of new cabins and other facilities)
Dec-31	Retained earnings	11,880
	Dividends		11,880
	(Dividend reclassified to retained earnings)

2.

GREAT ADVENTURES, INC.
Balance sheet
(Stockholders’ Equity Section)
December 31, 2022
Stockholders’ Equity:
Common Stock	124,000
Additional paid in capital	940,400
Total paid in capital	1,064,400
Retained earnings	58,286
Treasury stock	-102,000
Total stockholders’’ equity	1,020,686

Calculation of retained earnings as at December 31, 2022

Opening retained earnings	33,650
Add: Net income during the year	36,516
Less: Cash dividend paid during the year	11,880
Retained earnings as at December 31, 2022	58,286