On July 1, 2018, Tony and Suzie organize their new company as acorporation, Great Adventures Inc. The following transactions occurfrom August 1 through December 31. Also, the balances are providedfor the month ended July 31.  
  
Aug. 1 Great Adventures obtains a $30,000 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 $28,000 cash.
Aug. 10 Twenty additional kayakers pay $3,000 ($150 each), inaddition to the $4,000 that was paid in advance on July 30, on theday of the clinic. Tony conducts the first kayak clinic.
Aug. 17 Tony conducts a second kayak clinic, and the companyreceives $10,500 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 whennot in use, the company rents a storage shed, purchasing a one-yearrental policy for $2,400 ($200 per month).
Sep. 21 Tony conducts a rock-climbing clinic. The company receives$13,200 cash.
Oct. 17 Tony conducts an orienteering clinic. Participants practicehow to understand a topographical map, read an altimeter, use acompass, and orient through heavily wooded areas. The companyreceives $17,900 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 $500.
Dec. 5 To help organize and promote the race, Tony hires hiscollege roommate, Victor. Victor will be paid $50 in salary foreach team that competes in the race. His salary will be paid afterthe race.
Dec. 8 The company pays $1,200 to purchase a permit from a statepark where the race will be held. The amount is recorded as amiscellaneous expense.
Dec. 12 The company purchases racing supplies for $2,800 on accountdue in 30 days. Supplies include trophies for the top-finishingteams in each category, promotional shirts, snack foods and drinksfor participants, and field markers to prepare theracecourse.
Dec. 15 The company receives $20,000 cash from a total of fortyteams, and the race is held.
Dec. 16 The company pays Victor’s salary of $2,000.
Dec. 31 The company pays a dividend of $4,000 ($2,000 to Tony and$2,000 to Suzie).
Dec. 31 Using his personal money, Tony purchases a diamond ring for$4,500. Tony surprises Suzie by proposing that they get married.Suzie accepts and they get married!
  
The following information relates to year-end adjusting entries asof December 31, 2018.
  
a. Depreciation of the mountain bikes purchased on July 8 andkayaks purchased on August 4 totals $8,000.
b. Six months’ worth of insurance has expired.
c. Four months’ worth of rent has expired.
d. Of the $1,800 of office supplies purchased on July 4, $300remains.
e. Interest expense on the $30,000 loan obtained from the citycouncil on August 1 should be recorded.
f. Of the $2,800 of racing supplies purchased on December 12, $200remains.
g. Suzie calculates that the company owes $14,000 in incometaxes.
  
Assume the following ending balances for the month of July.

	Balance
Cash	$	9,000
Prepaidinsurance		4,800
Supplies(Office)		1,800
Equipment(Bikes)		12,000
Accountspayable		1,800
Deferredrevenue		4,000
Common stock		20,000
Service revenue(Clinic)		4,300
Advertisingexpense		1,000
Legal feesexpense		1,500
Great Adventures Problem 3-1 Part 3 3. Post transactions from August 1 throughDecember 31 and adjusting entries on December 31 to T-accounts.(Be sure to include beginning balances in theT-accounts.)

4. Prepare an adjusted trial balance as ofDecember 31, 2018. (The items in the Trial Balance shouldbe grouped as follows: Assets, Contra-asset accounts, Liabilities,Equity, Dividends, Revenues, and Expenses.)
  

Also Prepare a classified balance sheet as ofDecember 31, 2018?