Question

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 138,000 shares of common stock for $10 per share.
November	16		Purchase 13,800 shares of its own common stock (i.e., treasury stock) for $34 per share.
November	24		Resell 7,800 shares of treasury stock at $35 per share.
December	1		Declare a cash dividend on its common stock of $15,200 ($0.10 per share) to all stockholders of record on December 15.
December	20		Pay the cash dividend declared on December 1.
December	31		Pay $895,000 for construction of new cabins and other facilities. The entire expenditure is recorded in the Buildings account.

Choose the appropriate accounts to be reported on the income statement. The unadjusted, or post-closing balances will appear for each account, based on your selection.

UnadjustedAdjustedPost-closing

Unadjusted

Dates:

Nov 05

to:

Dec 30

	GREAT ADVENTURES, INC. Income Statement For the Period Ended December 31, 2022 $0 0 0 0 Net Sales 0 0 Gross Profit $0 Operating Expense 0 0 0 0 0 0 0 0 0 0 Total Operating Expenses 0 Operating Income (Loss) 0 0 0 0 0 $0

The balance sheet is the accounting equation: Assets = Liabilities + Equity. Each asset and liability account is reported separately on the balance sheet. The unadjusted, or post-closing balances will appear for each account, based on your selection.

UnadjustedAdjustedPost-closing

Unadjusted

Dates:

Nov 05

to:

Dec 30

	GREAT ADVENTURES, INC. Balance Sheet December 31, 2022 Assets Liabilities Current Assets: Current Liabilities: $0 $0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Total Current Liabilities 0 0 0 0 0 Total Current Assets 0 Total Liabilities 0 Long-term Assets: Stockholders’ Equity 0 0 0 0 0 0 Total Stockholders’ Equity 0 Total assets $0 Total Liabilities and Stockholders’ Equity $0

Answer 1