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At the end of 2022, the following information is available for Great Adventures.
a. Additional interest for five months needs to be accrued on the $30,400, 6% loan obtained on August 1, 2021. Recall that annual interest is paid each July 31.
b. Assume that $10,400 of the $30,400 loan discussed above is due next year.
c. By the end of the year, $20,000 in gift cards have been redeemed. The company had sold gift cards of $25,400 during the year and recorded those as Deferred Revenue.
d. Great Adventures is a defendant in litigation involving a biking accident during one of its adventure races. The company believes the likelihood of payment occurring is probable, and the estimated amount to be paid is $12,400.
e. For sales of MU watches, Great Adventures offers a warranty against defect for one year. At the end of the year, the company estimates future warranty costs to be $4,400.
Required:
Record the reclassified portion of long-term debt as current.
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At the end of 2022, the following information is available for Great Adventures.
a. Additional int...
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