[The following information applies to the questions displayed below.] Tony and Suzie graduate from college in May 2024 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, 2024, Tony and Suzie organize their new company as a corporation, Great Adventures Incorporated The articles of incorporation state that the corporation will sell 34,000 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. July 1 Sell $17,000 of comnon stock to Suzie. July 1 Sell $17,000 of coneon stock to Tony. July i Purchase a one-year insurance policy for $4,440 ( $370 per month) to cover injuries to July 2 participants during outdoor clinics. July 4 Pay legal tees of $1,480 associated with incorporation. July 7 Purchase office supplies of $1,700 on account. July 8 biking clinic to be held on July 15 . Attendees will be charged $50 the day of the clinic. July is Purchase 10 mountain bikes, paying $18,200 cash. July 22 and Suxje conducts the nountain biking clinic. July 24 mountain biking clinic and the company receives $4,400. Pay $750 to a local radio station for advertising to appear inmediately. A kayaking clinic will be held on August 10, and attendees can pay $100 in advance or $150 on the day of the clinic. Great Adventures receives total cash of $7,000 in advance from 70 kayakers for the upcoming kayak clinic. The following transactions occur over the resainder of 2024 . August 1 Great Adventures obtains a $42,0e0 low-interest loan for the company fron the city council, wich has recently passed an initiative encouraging business development related to outdoor activities. The loan is due in three years, and 68 annual interest is due each year on July 31. The company purchases 14 kayaks, paying $19,500 cash. Tonv and Suyie conduct the first kavak clinic. In addition to the $7.000 that was received in August 4 Aunust in Which has recently passed an initiative encouraging business development related to outdoor August 4 August 10 August 17 August 24 September 1 September 21 Ttorage shed for one year, paying $3,480 ( $290 per month) in advance. October 17 Decenber 1 December 5 Decenber 8 December 12 activities. The loan is due in three years, and 68 annual interest is due each year on July 31. The company purchases 14 kayaks, paying $19,500 cash. Tony and Suzie conduct the first kayak clinic. In addition to the $7,000 that was received in advance from kayakers on July 30 , the company receives additional cash of $3,000 from twenty new kayakers on the day of the clinic. Tony and Suzie conducts a second kayak clinic, and the company receives $12,500 cash. office suppties of $1,700 purchased on July 4 are paid in full. To provide better storage of mountain bikes and kayaks when not in use, the company rents a Tony and Suzie conduct a rock-climbing clinic. The company receives $13,600 cash. Tony and Suzie conduct an orienteering clinic. Participants practice how to understand a topographical map, read an altiseter, use a compass, and orient through heavily wooded areas. The company receives $18,000 cash. teams will Suzie decide to hold the company's first adventure race on December 15 . Four-person orienteering, trail runningoint to checkpoint using a combination of mountain biking, kayaking, complete all checkpoints in order wins. The entry fee. The first team in each category to To help organize and promote the race, Tony hires fee for each team is $690. paid $50 in salary for each team that competes in the college roommate, victor. Victor will be race. The company pays $1,200 to purchase a permit from a state park where the race will be held. The The count is recorded as a miscellaneous expense. The company purchases racing supplies for $2,400 on account due in 30 days. Supplies include trophies for the top-finishing teans in each category, promotional shirts, snack foods and The company forticipants, and field markers to prepare the racecourse. December 15 The company receives $27,600 cash from a totat of forty teams, and the race is held. Decenber 16 The company pays Victor's salary of $2,000. December 31 The company pays a dividend of $4,702 ( $2,350 to Tony and $2,350 to Suzie). December 31 Using his personal money, Tony purchases a diamond ring for $4,200. Tony surprises Suzie by proposing that they get married. Suzie accepts and they get married! The following information relates to year-end adjusting entries as of December 31, 2024. a. Depreciation of the mountain bikes purchased on July 8 and kayaks purchased on August 4 totals $7,600. b. Six month' of the one-year insurance policy purchased on July 1 has expired. c. Four months of the one-year rental agreement purchased on September 1 has expired. d. Of the $1,700 of office supplies purchased on July 4,$360 remains. e. Interest expense on the $42,000 loan obtained from the city council on August 1 should be recorded. f. Of the $2,400 of racing supplies purchased on December 12,$180 remains. 9. Suzle calculates that the company owes $13,200 in income taxes. 4. Prepare an adjusted trial balance as of December 31, 2024. \begin{tabular}{|c|c|c|} \hline Accumulated Depreciation & & \\ \hline Accounts Payable & & \\ \hline Income Tax Payable & & \\ \hline Interest Payable & & \\ \hline Notes Payable & & \\ \hline Common Stock & & \\ \hline Dividends & & \\ \hline Service Revenue (Clinic) & & \\ \hline Service Revenue (Racing) & & \\ \hline Advertising Expense & & \\ \hline Depreciation Expense & & \\ \hline Income Tax Expense & & \\ \hline Insurance Expense & & \\ \hline Interest Expense & & \\ \hline Legal Fees Expense & & \\ \hline Miscellaneous Expense & & \\ \hline Rent Expense & & \\ \hline Salaries Expense & & \\ \hline Supplies Expense (Office) & & \\ \hline Supplies Expense (Racing) & & \\ \hline Totals & 0 & 0 \\ \hline \end{tabular} For the period July 1 to December 31,2024 , prepare an income statement. 5. For the period July 1 to December 31, 2024, prepare an income statement, statement of stockholders' equity and classified balance sheet. Complete this question by entering your answers in the tabs below. For the period July 1 to December 31, 2024, prepare a statement of stockholders' equity. All account balances on July 1 were zero. Prepare a classified balance sheet as of December 31, 2024. (Amounts to be deducted should be indicated by a minus sign.) GREAT ADVENTURES, INCORPORATED \begin{tabular}{|c|c|c|c|} \hline Current Assets: & & Current Liabilities: & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & & \\ \hline & & Total Current Liabilities & 0 \\ \hline & & & \\ \hline Total Current Assets & 0 & Total Liabilities & 0 \\ \hline Long-term Assets: & & Stockholders' Equity & \\ \hline & & & \\ \hline & & A & \\ \hline & & & \\ \hline & & Total Slockholders' Equily & 0 \\ \hline Total Aasots & 0 & Total Liabilties and Stockholders' Equily & 0 \\ \hline \end{tabular} stmt of Stockholders Equity Balanea theot 8. Prepare a post-closing trial balance as of December 31, 2024. \begin{tabular}{|l|l|l|} \hline Accounts Payable & & \\ \hline Income Tax Payable & & \\ \hline Interest Payable & & \\ \hline Notes Payable & & \\ \hline Common Stock & & \\ \hline Retained Earnings & & \\ \hline Dividends & & \\ \hline Service Revenue (Clinic) & & \\ \hline Service Revenue (Racing) & & \\ \hline Advertising Expense & & \\ \hline Depreciation Expense & & \\ \hline Income Tax Expense & & \\ \hline Insurance Expense & & \\ \hline Interest Expense & & \\ \hline Legal Fees Expense & & \\ \hline Miscellaneous Expense & & \\ \hline Rent Expense & & \\ \hline Salaries Expense & & \\ \hline Supplies Expense (Office) & & \\ \hline Supplies Expense (Racing) & $ & $ \\ \hline Totals & & \\ \hline \end{tabular}