60.1K

Verified Solution

Link Copied!

is the information provided complete and correct

Required information Great Adventures Problem AP2-1 The following information applies to the questions displayed below. Tony and Suzie graduate from college in May 2021 and begin developing their new business. They begin by offering clinics for basic outdoor activities such as mountain biking or kayaking. Upon developing a customer base, they'll hold their first adventure races. These races will involve four person teams that race from one 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 for outdoor enthusiasts. On July 1, 2021, Tony and Suzie organize their new company as a corporation, Great Adventures Inc. The articles of incorporation state that the corporation will sell 35,000 shares of common stock for $1 each. Each share of stock represents a unit of ownership. Tony and Suzie will act as co-presidents of the company. The following business activities occur during July for Great Adventures. Jul. 1 Sell $17,500 of common stock to Sutie. Jul. 1 Sell $17,5ee of common stock to Tony Jul. 1 Purchase a one-year insurance policy for $5,400 (5450 per month) to cover injuries to participants during outdoor clinics. Jul. 2 Pay legal fees of $1,200 associated with incorporation Jul. 4 Purchase office supplies of $1,700 on account. Jul 7 Pay $300 to local newspaper for advertising to appear ediately for an upcoming mountain biking clinic to be held on July 15. Attendees will be charged $40 the day of the clinic Tul. & Purchase 10 mountain bikes, paying $11,100 cash. Jul. 15 On the day of the clinic, Great Adventures des cash i ron bis ony conduct the mountain biking clinic ul. 22 Because of the success of the first in biking in Yory holds the mountain biking clinic and the company receives $2,400. Jul. 24 ay 10 to local radio station for den to t in linic will be held on August 10, and attendees can pay $150 in advance 1.200 the the n Jul 30 Great Adventures receives Cash of 56,000 in advance for a t the coming Kayak Journal entry worksheet o 3 oo O O O O... 0 , Sell $17,500 of common stock to Tony. Note: Enter debits before credits. Credit Date July 01 General Journal Cash Common Stock Debit 17,500 17,500 Record entry Clear entry View general Journal View transaction list Journal entry worksheet Purchase a one-year insurance policy for $5,400 ($450 per month) to cover injuries to participants during outdoor clinics. Note: Enter debits before credits Credit Date July 01 General Journal Prepaid Insurance Cash Debit 5,400 5,400 Record entry Clear entry View general journal View transaction list Journal entry worksheet Pay legal fees of $1,200 associated with incorporation. Note: Enter debits before credits Credit Date July 02 General Journal Legal Fees Expense | Cash Debit 1,200 1,200 Record entry Clear entry View general journal Journal entry worksheet Ko @ @ O O O O ..... > Purchase office supplies of $1,700 on account. Note: Enter debits before credits. Credit Date July 04 General Journal Supplies Accounts Payable Debit 1,700 1,700 Record entry Clear entry View general journal Journal entry worksheet Great Adventures receives cash of $6,000 in advance from 40 kayakers for the upcoming kayak clinic. Note: Enter debits before credits. Credit Date July 30 General Journal Cash Deferred Revenue Debit 6,000 6,000 Record entry Clear entry View general journal

Answer & Explanation Solved by verified expert

See Answer