Great Adventures has authorized $1 par value common stock. When the company began on July 1, 2024, 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 2025:

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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, 2024, 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 2025:

 

November 5 Issue an additional 136,000 shares of common stock for $10 per share.
November 16 Purchase 13,600 shares of its own common stock (i.e., treasury stock) for $33 per share.
November 24 Resell 7,600 shares of treasury stock at $34 per share.
December 1 Declare a cash dividend on its common stock of $15,000 ($0.10 per share) to all stockholders of record on December 15.
December 20 Pay the cash dividend declared on December 1.
December 30 Pay $890,000 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

   
 
 
GREAT ADVENTURES, INCORPORATED
Income Statement
For the Period Ended December 31, 2025
  $0  
  0  
  0  
  0  
Net Sales 0  
  0  
Gross Profit   $0
Operating Expenses:    
  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

   
 
 
GREAT ADVENTURES, INCORPORATED
Balance Sheet
December 31, 2025
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

DO NOT GIVE SOLUTION IN IMAGE FORMAT 

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