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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 21,000 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 $10,500 ofcommon stock to Suzie.
Jul.		1		Sell $10,500 ofcommon stock to Tony.
Jul.		1		Purchase aone-year insurance policy for $5,400 ($450 per month) to coverinjuries to participants during outdoor clinics.
Jul.		2		Pay legal feesof $1,500 associated with incorporation.
Jul.		4		Purchase officesupplies of $1,500 on account.
Jul.		7		Pay foradvertising of $350 to a local newspaper for an upcoming mountainbiking clinic to be held on July 15. Attendees will be charged $50on the day of the clinic.
Jul.		8		Purchase 10mountain bikes, paying $10,200 cash.
Jul.		15		On the day ofthe clinic, Great Adventures receives cash of $2,000 from 40bikers. Tony conducts the mountain biking clinic.
Jul.		22		Because of thesuccess of the first mountain biking clinic, Tony holds anothermountain biking clinic and the company receives $2,550.
Jul.		24		Pay foradvertising of $880 to a local radio station for a kayaking clinicto be held on August 10. Attendees can pay $120 in advance or $170on the day of the clinic.
Jul.		30		Great Adventuresreceives cash of $7,200 in advance from 60 kayakers for theupcoming kayak clinic.

Aug.	1		Great Adventuresobtains a $38,000 low-interest loan for the company from the citycouncil, which has recently passed an initiative encouragingbusiness development related to outdoor activities. The loan is duein three years, and 6% annual interest is due each year on July31.
Aug.	4		The company purchases14 kayaks, paying $12,100 cash.
Aug.	10		Twenty additionalkayakers pay $3,400 ($170 each), in addition to the $7,200 that waspaid in advance on July 30, on the day of the clinic. Tony conductsthe first kayak clinic.
Aug.	17		Tony conducts a secondkayak clinic, and the company receives $12,200 cash.
Aug.	24		Office supplies of$1,500 purchased on July 4 are paid in full.
Sep.	1		To provide betterstorage of mountain bikes and kayaks when not in use, the companyrents a storage shed, purchasing a one-year rental policy for$2,760 ($230 per month).
Sep.	21		Tony conducts arock-climbing clinic. The company receives $14,200 cash.
Oct.	17		Tony conducts anorienteering clinic. Participants practice how to understand atopographical map, read an altimeter, use a compass, and orientthrough heavily wooded areas. The company receives $19,000cash.
Dec.	1		Tony decides to holdthe company’s first adventure race on December 15. Four-personteams will race from checkpoint to checkpoint using a combinationof mountain biking, kayaking, orienteering, trail running, androck-climbing skills. The first team in each category to completeall checkpoints in order wins. The entry fee for each team is$620.
Dec.	5		To help organize andpromote the race, Tony hires his college roommate, Victor. Victorwill be paid $70 in salary for each team that competes in the race.His salary will be paid after the race.
Dec.	8		The company pays $1,200to purchase a permit from a state park where the race will be held.The amount is recorded as a miscellaneous expense.
Dec.	12		The company purchasesracing supplies for $2,600 on account due in 30 days. Suppliesinclude trophies for the top-finishing teams in each category,promotional shirts, snack foods and drinks for participants, andfield markers to prepare the racecourse.
Dec.	15		The company receives$24,800 cash from a total of forty teams, and the race isheld.
Dec.	16		The company paysVictor’s salary of $2,800.
Dec.	31		The company pays adividend of $3,200 ($1,600 to Tony and $1,600 to Suzie).
Dec.	31		Using his personalmoney, Tony purchases a diamond ring for $4,300. Tony surprisesSuzie by proposing that they get married. Suzie accepts and theyget married!

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

a) Depreciation of the mountain bikes purchased on July 8 andkayaks purchased on August 4 totals $4,460.

b) Six months’ worth of insurance has expired.

c) Four months’ worth of rent has expired.

d) Of the $1,500 of office supplies purchased on July 4, $370remains.

e) Interest expense on the $38,000 loan obtained from the citycouncil on August 1 should be recorded.

f) Of the $2,600 of racing supplies purchased on December 12,$160 remains.

g) Suzie calculates that the company owes $14,200 in incometaxes.

*Requirement(s):

1.	Record each of the transactions listed above in the 'GeneralJournal'
2.	Record the adjusting entries.
3.	Review the adjusted 'Trial Balance' as of December 31,2018.
4.	Prepare an income statement for the period ended December 31,2018.
5.	Prepare a classified balance sheet as of December 31, 2018,under the 'Balance Sheet'.
6.	Record the closing entries under the 'General Journal'