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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 30,000 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 transactions occur from July 1 through December 31. Jul. 1 Sell $15,000 of common stock to Suzie. Jul. 1 Sell $15,000 of common stock to Tony. Jul. 1 Purchase a one-year insurance policy for 54,800 (5400 per month) to cover injuries to participants during outdoor clinics. Jul. 2 Pay legal fees of $1,500 associated with incorporation. Jul. 4 Purchase office supplies of $1,200 on account. Jul. 7 Pay for advertising of $230 to a local newspaper for an upcoming mountain biking clinic to be held on July 15. Attendees will be charged $30 on the day of the clinic. Jul. & Purchase 10 mountain bikes, paying $12,100 cash. Jul. 15 On the day of the clinic, Great Adventures receives cash of $1,800 from 60 bikers. Tony conducts the mountain biking clinic. Jul. 22 Because of the success of the first mountain biking clinic, Tony holds another mountain biking clinic and the company receives $2,150. Jul. 24 Pay $760 to a local radio station for advertising to appear immediately. A kayaking clinic will be held on August 10, and attendees can pay $120 in advance or $170 on the day of the clinic. Jul. 30 Great Adventures receives cash of $7,200 in advance from 60 kayakers for the upcoming kayak clinic. Aug. 1 Great Adventures obtains a $46,000 low-interest loan for the company from the city council, which has recently passed an initiative encouraging business development related to outdoor activities. The loan is due in three years, and 6% annual interest is due each year on July 31. Aug. 4 The company purchases 14 kayaks, paying $22,100 cash. Aug. 10 Twenty additional kayakers pay $3,480 ($170 each), in addition to the $7,200 that was paid in advance on July 30, on the day of the clinic. Tony conducts the first kayak clinic. Aug. 17 Tony conducts a second kayak clinic, and the company receives $11,800 cash. Aug. 24 Office supplies of $1,200 purchased on July 4 are paid in full. Sep. 1 To provide better storage of mountain bikes and kayaks when not in use, the company rents a storage shed for one year, paying $3,120 (5260 per month) in advance. Sep. 21 Tony conducts a rock-climbing clinic. The company receives $14,200 cash. Oct. 17 Tony conducts an orienteering clinic. Participants practice how to understand a topographical map, read an altimeter, use a compass, and orient through heavily wooded areas. The company receives $18,200 cash. Dec. 1 Tony decides to hold the company's first adventure race on December 15. Four person teams will race from checkpoint to checkpoint using a combination of mountain biking, kayaking, orienteering, trail running and rock-climbing skills. The first team in each category to complete all checkpoints in order wins. The entry fee for each team is $580. Dec. 5 To help organize and promote the race, Tony hires his college roommate, Victor. Victor will be paid 570 in salary for each team that competes in the race. His salary will be paid after the race. Dec. The company pays $1,400 to purchase a permit from a state park where the race will be held. The amount is recorded as a iscellaneous expense. Dec. 12 The company purchases racing supplies for $2,900 on account due in 30 days. Supplies include trophies for the top-finishing teams in each category, promotional shirts, Shack foods and drinks for participants, and field markers to prepare the Facecourse. Dec. 15 The company receives $23,200 cash from a total of forty teens, and the race is held. Dec. 16 The company pays Victor's salary of $2,800. Dec. 31 The company pays a dividend of $4,500 (52,250 to Tony and $2,250 to Surie). Dec. 31 Using his personal money, Tony purchases a diamond ring for $4,900. Tony surprises Suzie by proposing that they get sarried. Sutie accepts and they get married! The following information relates to year-end adjusting entries as of December 31, 2021 Depreciation of the mountain bikes purchased on July 8 and kayaks purchased on August 4 totals $6.840 b. Six months of the one-year insurance policy purchased on July 1 has expired. Four months of the one-year rental agreement purchased on September has expired d. Of the $1200 of office supplies purchased on July 4, 5400 remains e Interest expense on the 546,000 loan obtained from the city council on August 1 should be recorded. of the 2,900 of racing supplies purchased on December 12. $130 remains g Suzie calculates that the company owes $14100 in income taxes Answer is not complete Balance General Journal General Leder Trial Balance Income Statement Statement of SE Prepare the journal entries for transactions. If no entry is required for a transaction/event, select "No journal entry required in the first account field.) 1 J01.2021 0 15 Cash Common Sant 2 J01.2021 0 Cash Common Stock 15 DO 3 Jul 01, 2021 urance 0 Pred Cash 4800 4 02, 2021 Legal Fees En 0 04.2021 Supples Ohio Account Payable 0 307.2021 Advertising 0 0 2021 Ecuments 60 90 90 22.2021 Ch 24 2021 30 palaa peab Search 17 Sep 01, 2021 Prepaid Red Sep 21, 2021 Service Rover 1 out 17, 2021 cm ) Service Revenue C 20 Dec 01, 2021 No Journal Entry Reque 21 Dec 05, 2021 No Journal Entry Reg 2 n - E 23 Dec 12, 2021 Supplies Racing = = 27 Dec 31, 2021 No Journal Entry Required 28 Dec 31, 2021 Depreciation Expense Ac e rcato 29 Dec 31, 2021 Insurance Expense Prepan urange ( - a = = PR 31 Dec 31, 2021 Supplies Expense (Office) 33 Dec 31, 2021 Supplies Expense (Ra 9 - BE ) A Accounts Payable 2.000 24 Dec 15, 2021 Cash Service Revenue (Racin 23.2000 25 Dec 18.2021 Salaries Expense Cash 2800 2,800 26 Dec 31, 2021 l Dividends Cash 4500 27 Dec 31, 2021 No Journal Entry Required 28 Dec 31, 2021 Depreciation Expense Accumulated Depreciation 6.480X Dec 31, 2021 Insurance Expense Prepaid Insurance 24000 30 Dec 31, 2021 Rent Expense Prepaid Rent 1,040 31 Dec 31, 2021 Supplies Expense (Office Supplies Office) 32 Dec 31, 2021 Interest Expense Interest Payable 33 Dec 31, 2021 Supplies Expense (Racing) Supplies (Racing) 34 Dec 31, 2021 Income Tax Expense Income Taxes Payable 14.100 35 Dec 31, 2021 515509 Service Revenue (Clinic) Supplies (Racing) Additional Paidin Capital 38 Dec 31, 2021 14,100 2.400 Additional Paid in Capita Advertising Expense Depreciation Expense Income Tax Expense Insurance Expense Interest Expense Legal Fees Expense Miscellaneous Expense Rent Expense Salaries Expense Supplies Expense to Service Revenue Ra 1,0400 2.000 2.000 27700 11.2021 Retained Earnings

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