At the end of 2025, the following information is available for Great Adventures. Additional interest for five months needs to be accrued on the $33,600, 6% note payable obtained on August 1, 2024. Recall that annual interest is paid each July 31. • Assume that $13,600 of the $33,600 note discussed above is due next year. Record the entry to reclassify the curren portion of the long-term note. . By the end of the year, $20,000 in gift cards have been redeemed. The company had sold gift cards of $28,600 during the year and recorded those as Deferred Revenue. • 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 $15,600. 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 $7,600. •

At the end of 2025, the following information is available for Great Adventures. Additional interest for five months needs to be accrued on the $33,600, 6% note payable obtained on August 1, 2024. Recall that annual interest is paid each July 31. • Assume that $13,600 of the $33,600 note discussed above is due next year. Record the entry to reclassify the curren portion of the long-term note. . By the end of the year, $20,000 in gift cards have been redeemed. The company had sold gift cards of $28,600 during the year and recorded those as Deferred Revenue. • 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 $15,600. 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 $7,600. •

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter14: Long-term Liabilities: Bonds And Notes

Section: Chapter Questions

Problem 11E

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