Do not write out, please type up

Requirements:

1.	Record each of thetransactions listed above in the 'General Journal' tab (these areshown as items 1 - 27). Review the 'General Ledger' and the 'TrialBalance' tabs to see the effect of the transactions on the accountbalances.
2.	Record the adjustingentries in the 'General Journal' tab (these are shown as items28-34).
3.	Review the adjusted 'TrialBalance' as of December 31, 2018.
4.	Prepare an income statementfor the period ended December 31, 2018, in the 'Income Statement'tab.
5.	Prepare a classifiedbalance sheet as of December 31, 2018 in the 'Balance Sheet'tab.
6.	Record the closing entriesin the 'General Journal' tab (these are shown as items35-37).

Tony and Suzie graduate from college in May 2018 and begindeveloping their new business. They begin by offering clinics forbasic outdoor activities such as mountain biking or kayaking. Upondeveloping a customer base, they’ll hold their first adventureraces. These races will involve four-person teams that race fromone checkpoint to the next using a combination of kayaking,mountain biking, orienteering, and trail running. In the long run,they plan to sell outdoor gear and develop a ropes course foroutdoor enthusiasts.

On July 1, 2018, Tony and Suzie organize their new company as acorporation, Great Adventures Inc. The articles of incorporationstate that the corporation will sell 37,000 shares of common stockfor $1 each. Each share of stock represents a unit of ownership.Tony and Suzie will act as co-presidents of the company. Thefollowing transactions occur from July 1 through December 31.

  

Jul.		1		Sell $18,500 of common stock to Suzie.
Jul.		1		Sell $18,500 of common stock to Tony.
Jul.		1		Purchase a one-year insurance policy for $4,680 ($390 permonth) to cover injuries to participants during outdoorclinics.
Jul.		2		Pay legal fees of $1,700 associated with incorporation.
Jul.		4		Purchase office supplies of $1,800 on account.
Jul.		7		Pay for advertising of $340 to a local newspaper for anupcoming mountain biking clinic to be held on July 15. Attendeeswill be charged $60 on the day of the clinic.
Jul.		8		Purchase 10 mountain bikes, paying $18,400 cash.
Jul.		15		On the day of the clinic, Great Adventures receives cash of$4,800 from 80 bikers. Tony conducts the mountain bikingclinic.
Jul.		22		Because of the success of the first mountain biking clinic,Tony holds another mountain biking clinic and the company receives$5,400.
Jul.		24		Pay for advertising of $790 to a local radio station for akayaking clinic to be held on August 10. Attendees can pay $100 inadvance or $150 on the day of the clinic.
Jul.		30		Great Adventures receives cash of $7,000 in advance from 70kayakers for the upcoming kayak clinic.

Aug.	1		Great Adventures obtains a $43,000 low-interest loan for thecompany from the city council, which has recently passed aninitiative encouraging business development related to outdooractivities. The loan is due in three years, and 6% annual interestis due each year on July 31.
Aug.	4		The company purchases 14 kayaks, paying $18,200 cash.
Aug.	10		Twenty additional kayakers pay $3,000 ($150 each), in additionto the $7,000 that was paid in advance on July 30, on the day ofthe clinic. Tony conducts the first kayak clinic.
Aug.	17		Tony conducts a second kayak clinic, and the company receives$11,000 cash.
Aug.	24		Office supplies of $1,800 purchased on July 4 are paid infull.
Sep.	1		To provide better storage of mountain bikes and kayaks when notin use, the company rents a storage shed, purchasing a one-yearrental policy for $4,200 ($350 per month).
Sep.	21		Tony conducts a rock-climbing clinic. The company receives$14,500 cash.
Oct.	17		Tony conducts an orienteering clinic. Participants practice howto understand a topographical map, read an altimeter, use acompass, and orient through heavily wooded areas. The companyreceives $19,000 cash.
Dec.	1		Tony decides to hold the company’s first adventure race onDecember 15. Four-person teams will race from checkpoint tocheckpoint using a combination of mountain biking, kayaking,orienteering, trail running, and rock-climbing skills. The firstteam in each category to complete all checkpoints in order wins.The entry fee for each team is $670.
Dec.	5		To help organize and promote the race, Tony hires his collegeroommate, Victor. Victor will be paid $40 in salary for each teamthat competes in the race. His salary will be paid after therace.
Dec.	8		The company pays $1,100 to purchase a permit from a state parkwhere the race will be held. The amount is recorded as amiscellaneous expense.
Dec.	12		The company purchases racing supplies for $2,300 on account duein 30 days. Supplies include trophies for the top-finishing teamsin each category, promotional shirts, snack foods and drinks forparticipants, and field markers to prepare the racecourse.
Dec.	15		The company receives $26,800 cash from a total of forty teams,and the race is held.
Dec.	16		The company pays Victor’s salary of $1,600.
Dec.	31		The company pays a dividend of $4,600 ($2,300 to Tony and$2,300 to Suzie).
Dec.	31		Using his personal money, Tony purchases a diamond ring for$5,000. Tony surprises Suzie by proposing that they get married.Suzie accepts and they get married!

    

The following information relates to year-end adjusting entriesas of December 31, 2018.

1. Depreciation of the mountain bikes purchased on July 8 andkayaks purchased on August 4 totals $7,320.
2. Six months’ worth of insurance has expired.
3. Four months’ worth of rent has expired.
4. Of the $1,800 of office supplies purchased on July 4, $330remains.
5. Interest expense on the $43,000 loan obtained from the citycouncil on August 1 should be recorded.
6. Of the $2,300 of racing supplies purchased on December 12, $170remains.
7. Suzie calculates that the company owes $13,600 in incometaxes.