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 Adventures purchases outdoor gear auch 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 kida to exercise nore and enjoy the outdoors so he charges the group only $2,500. Great Adventures provides these services on account. Feb. 28 The Boy Scout troop paya the full amount owed, less the 58 quick-payment discount 19 Reynold's Management has its employees participate in a one-day TEAM adventure. Creat Adventures provides services on account for $3,500, and Reynold's agrees to pay within 30 days Mar Mar. 27 Reynold 's paya the full amount owed, lesa the 5 quick-payment discount. Apr 7 Several men from the Elks Lodge decide to participate in a TEAM adventure. They pay $7,000, and the event is scheduled for the following week Apr. 14 The TEAM adventure is held for members of the Elks Lodge Apr 30 Myers Manufacturing participates in a TEAM adventure. Great Adventures provides services on account for $5,500, and Myera agrees to pay within 30 days 31 Myers Manufacturing fails to pay the amount owed within the specified period and agrees to sign a three-month, 8 note receivable to replace the exiating account receivable May ב Jun 15 Several MBA qroups participate in TEAM adventures. Great Adventures provides services on account for $21,500 to these groups, ith payment due in July

b. Accrue one month of interest on the note receivable from Myers Manufacturing.

Answer 1

Answer.

No clear Information is provided regarding what is to be done. So, transactions are recorded in Journal.

Date	Account tittle	Debit	Credit
Jan. 24, 2022	Equipment	$4,500
	Cash		$ 4,500
	To record purchase of equipment and other materials
Feb. 25	Account Receivable	2,500
	Service Revenue		2,500
	To record service revenue on account
Feb. 28	Cash	2,375
	Cash Discount	125
	Account Receivable		2,500
	To record cash receipt and discount
Mar. 19	Account Receivable	3,500
	Service Revenue		3,500
	To record service provided on account
Mar. 27	Cash	3,325
	Cash Discount	175
	Account Receivable		3,500
	To record cash receipt and discount allowed
April 7	Cash	$ 7,000
	Unearned Service Revenue		$ 7,000
	To record cash receipt for proving service in future
April 14	Unearned Service Revenue	$ 7,000
	Service Revenue		$ 7,000
	To record unearned revenue being earned
April 30	Account Receivable	$ 5,500
	Service Revenue		$ 5,500
	To record service provided on account
May 31	Note Receivable	$5,500
	Account Receivable		$5,500
	To record a 3 months, 8% Note Receivable
Jun. 15	Account Receivable	$21,500
	Service Revenue		$21,500
	To record service provided on account
(B)
Jun. 30	Interest Receivable	$ 36.67
	Interest Revenue		$ 36.67
	To record accrued interest for 1 month
	Interest = $5,500$\times$ 0.08 $\times$ 1/12 = $36.67