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 20,000 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 business activities occur during July for GreatAdventures.
Jul. 1 Sell $10,000 of common stock to Suzie.
Jul. 1 Sell $10,000 of common stock to Tony.
Jul. 1 Purchase a one-year insurance policy for $4,200 ($350 permonth) to cover injuries to participants during outdoorclinics.
Jul. 2 Pay legal fees of $1,100 associated withincorporation.
Jul. 4 Purchase office supplies of $1,300 on account.
Jul. 7 Pay for advertising of $370 to a local newspaper for anupcoming mountain biking clinic to be held on July 15. Attendeeswill be charged $60 the day of the clinic.
Jul. 8 Purchase 10 mountain bikes, paying $11,200cash.
Jul. 15 On the day of the clinic, Great Adventures receives cash of$3,600 from 60 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$4,150.
Jul. 24 Pay for advertising of $840 to a local radio station for akayaking clinic to be held on August 10. Attendees can pay $120 inadvance or $170 on the day of the clinic.
Jul. 30 Great Adventures receives cash of $8,400 in advance from 70kayakers for the upcoming kayak clinic.
1. Record each transaction in July. (Ifno entry is required for a transaction/event, select "No journalentry required" in the first account field.)
| Date | General Journal | Debit | Credit |
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| July 01, 2018 | | | |
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