Question

Can you verify that i did these correctly and assist with the income statement and the balance sheet please.

Great Adventures Problem AP5-1 (GL) 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 such as ropes, helmets, harnesses, compasses, and other miscellaneous equipment for $4,200 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 $2,700, but he wants to encourage kids to exercise more and enjoy the outdoors so he charges the group only $2,280. Great Adventures provides these services on account. Feb. 28 The Boy Scout troop pays the full amount owed, less the 5% quick-payment discount. Mar. 19 Reynold's Management has its employees participate in a one-day TEAM adventure. Great Adventures provides services on account for $3,280, and Reynold's agrees to pay within 30 days. Mar. 27 Reynold's pays the full amount owed, less the 5% quick-payment discount. Apr. 7 Several men from the Elks Lodge decide to participate in a TEAM adventure. They pay $6,7ee, 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 $60,000, 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, 8% note receivable to replace the existing account receivable. Jun. 15 Several MBA groups participate in TEAM adventures. Great Adventures provides services on account for $20,000 to these groups, with payment due in July. Consider the following information as of June 30, 2022. Suzie estimates uncollectible accounts to be 10% of accounts receivable (which does not include the $60.000 note receivable from Myers Manufacturing). Prepare the adjusting entry for uncollectible accounts. Accrue one month of interest on the note receivable from Myers Manufacturing

Answer 1

Entries with mistakes highlghted in orange color:

Great Adventures, Inc. Journal entries No. Date Account 1 24-Jan Equipment Cash Credit Calculation Debit $ 4,200 $ 4,200 2 $ 2,200 25-Feb Accounts Receivable Service Revenue $ 2,200 3 28-Feb Cash Sales Discounts Accounts Receivable $ $ 2,090 110 2200*5% $ 2,200 4 $ 3,200 19-Mar Accounts Receivable Service Revenue $ 3,200 5 27-Mar Cash Sales Discounts Accounts Receivable $ $ 3,040 160 3200*5% $ 3,200 6 $ 6,700 7-Apr Cash Deferred Revenue $ 6,700 7 $ 6,700 14-Apr Deferred Revenue Service Revenue $ 6,700 8 $ 60,000 30-Apr Accounts Receivable Service Revenue $ 60,000 9 $ 60,000 31-May Notes Receivable Accounts Receivable $ 60,000 10 $ 20,000 $ 20,000 15-Jun Accounts Receivable Service Revenue Adjusting entries 30-Jun Bad Debt Expense Allowance for Uncollectible Accounts 11 $ 2,000 20000*10% $ 2,000 12 $ 400 60000*8%*1/12 $ 400 30-Jun Interest Receivable Interest Revenue Closing entries 30-Jun Service Revenue Interest Revenue Retained Earnings 13 $ 92,100 $ 400 $ 92,500 14 $ 2,270 30-Jun Retained Earnings Sales Discounts Bad Debt Expense $ 270 $ 2,000

Great Adventures, Inc. Account Names Cash Accounts Receivable Allowance for Uncollectible Accounts Notes Receivable Interest Receivable Equipment Accounts Payable Deferred Revenue Retained Earnings Service Revenue Sales Discounts Interest Revenue Bad Debt Expense Totals Trial Balance Debit Credit 7,630 20,000 2,000 60,000 400 4,200 - 92,100 270 400 2,000 94,500 94,500

92,100 (270) 91,830 Great Adventures, Inc. Income Statement For the Six Months Ended June 30, 2022 Service Revenue Sales Discounts Net Revenue Operating expenses Bad Debt Expense Operating Income Non-Operating items Interest Revenue Net Income 2,000 89,830 400 90,230

Great Adventures, Inc. Balance Sheet As of June 30, 2022 Assets Current Assets Cash Accounts Receivable Allowance for Uncollectible Accounts Accounts Receivable, Net Notes Receivable Interest Receivable Total Current Assets Liabilities & Stockholders Equity Current Liabilities 7,630 Accounts Payable Deferred Revenue 20,000 (2,000) 18,000 60,000 400 86,030 Total Current Liabilities Property, Plant and Equipment Equipment Total Property, Plant and Equipment Stockholders Equity 4,200 Retained Earnings 4,200 Total Stockholders Equity 90,230 90,230 Total Assets 90,230 Total Liabilities & Stockholders Equity 90,230