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 20.000 shares of common stock for Steach. 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 $10.000 of common stock to Suria Jul. 1 Sell $10.000 of common stock to Tony. Jul. i Purchase a one-year insurance policy for $4.000 (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 ottice rupplies of $1.800 on account Jul. 7 Pay for advertising of $200 to a local newspaper for an upcoming mountain biking clinic to be held on July 15. attendees will be charged $50 on the day of the clinic Jul. 8 Purchase 10 mountain bikes. paring $12.000 cash Jul. 15 On the day of the clinic. Great Adventures receives cash of $2.000 from 40 bakers. Tony conducts the sountain biking clinic Jul 22 Because of the muccess of the first mountain biking clinic. Tomy holds mother mountain biking clinic and the company receives $2.300. Jul. 24 Pay $700 to a local radio station for advertising to wear imediately. & taking cline will be held on kugust 10. and attendees can pay $100 in advance or $150 on the day of the clinic Tul 30 Great Adventures receives cash of $4.000 in advance from 40 kagakers for the upcoming agak clinic. Aug. 1 Great Adventures obtain a $30.000 low interest low 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 an interest is due each year on July 31. Aug. 4 The company purchases ! kayak, paying $28.000 cash 10 Twenty additional kakers $3.000 ($150 each), in addition to the $4.000 that was paid in advance on July 30. on the day of the clinic. Tony conduct the first kayak clinic . 17 Tony conducts a second kayak clinic. and the company receives $10.500 each Aug. 24 Office supplies of $1.800 purchased on July are paid in full Sep. To provide better storage of mountain bikes and works when not in the create a storage shed for one year, paying $2.400 ($200 per month) in advance. Sep. 21 Tony conducts a rock-climbing clinic. The con receives $13.200 cach Det. 17 Tomy conducts an orienteering clinic. Participants practice how to understand atapothical map. read an altimeter, use a compass. and orient through heavily wooded area. The company receaves 517.900 cash Dec. 1 Tony decades to hold the company first renture race on December 15. Four-pecaon twill race from checkpoint to checkpoint wring a combination of Rotan bikint. c. in trail running, and rock-climbing skills. The first tes in each category to complete all checkpoints in de wint. The entry fee for each tear is $500. Dec. S to help organize and promote the race. Toner hares his college tomate Victor. Victor will be paid $50 in salary for each tea that competes in the race. His may will be paid after the race Dec. The company pays $1.200 to purchase a pereat from a state park where the race will be held the wount is recorded & Riscellaneous expense. Dee. 12 The company purchases racing supplies for $2.000 en account de indeplies include trophies for the top-finashing tous in each category, promotional shirts. mack foods and drinks for participants and field markers to prepare the racecourse. Dec. 15 The company receives $20.000 cash from a total of forty tend the race held Dec. 16 The company pay Victor's salary of $2.000 Dec. 31 The company pas dividend of $4.000 ($2.000 to Tomy and $2.000 to Suria). 31 Uring his personal money. Tome purchases a diandrit for $4.500. To surprise Surse by preparing that they cet married. Surie accepted they get married! Dec The following information relates to year-end adjusting entries as of December 31, 2021 a Depreciation of the mountain bikes purchased on July 8 and kayaks purchased on August 4 totals $8.000 b. Six months of the one year insurance policy purchased on July 1 has expired c. Four months of the one-year rental agreement purchased on September has expired. d. Of the $1.800 of office supplies purchased on July 4.$300 remains e Interest expense on the $30.000 loan obtained from the city council on August I should be recorded f. Of the $2,800 of racing supplies purchased on December 12, $200 remains g Suzie calculates that the company owes $14.000 in income taxes 6. Record closing entries as of December 31, 2021. (If no entry is required for a transaction/event, select " in the first account field.) View transaction list Journal entry worksheet 2 3 > Record the closing of revenue accounts. Note: Enter debits before credits. General Journal Date Dec 31, 2021 Debit Credit Record entry Clear entry View general journal Journal entry worksheet Record the closing of dividends account. Note: Enter debits before credits. Date Dec 31, 2021 General Journal Debit Credit Record entry Clear entry View general journal 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 20.000 shares of common stock for Steach. 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 $10.000 of common stock to Suria Jul. 1 Sell $10.000 of common stock to Tony. Jul. i Purchase a one-year insurance policy for $4.000 (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 ottice rupplies of $1.800 on account Jul. 7 Pay for advertising of $200 to a local newspaper for an upcoming mountain biking clinic to be held on July 15. attendees will be charged $50 on the day of the clinic Jul. 8 Purchase 10 mountain bikes. paring $12.000 cash Jul. 15 On the day of the clinic. Great Adventures receives cash of $2.000 from 40 bakers. Tony conducts the sountain biking clinic Jul 22 Because of the muccess of the first mountain biking clinic. Tomy holds mother mountain biking clinic and the company receives $2.300. Jul. 24 Pay $700 to a local radio station for advertising to wear imediately. & taking cline will be held on kugust 10. and attendees can pay $100 in advance or $150 on the day of the clinic Tul 30 Great Adventures receives cash of $4.000 in advance from 40 kagakers for the upcoming agak clinic. Aug. 1 Great Adventures obtain a $30.000 low interest low 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 an interest is due each year on July 31. Aug. 4 The company purchases ! kayak, paying $28.000 cash 10 Twenty additional kakers $3.000 ($150 each), in addition to the $4.000 that was paid in advance on July 30. on the day of the clinic. Tony conduct the first kayak clinic . 17 Tony conducts a second kayak clinic. and the company receives $10.500 each Aug. 24 Office supplies of $1.800 purchased on July are paid in full Sep. To provide better storage of mountain bikes and works when not in the create a storage shed for one year, paying $2.400 ($200 per month) in advance. Sep. 21 Tony conducts a rock-climbing clinic. The con receives $13.200 cach Det. 17 Tomy conducts an orienteering clinic. Participants practice how to understand atapothical map. read an altimeter, use a compass. and orient through heavily wooded area. The company receaves 517.900 cash Dec. 1 Tony decades to hold the company first renture race on December 15. Four-pecaon twill race from checkpoint to checkpoint wring a combination of Rotan bikint. c. in trail running, and rock-climbing skills. The first tes in each category to complete all checkpoints in de wint. The entry fee for each tear is $500. Dec. S to help organize and promote the race. Toner hares his college tomate Victor. Victor will be paid $50 in salary for each tea that competes in the race. His may will be paid after the race Dec. The company pays $1.200 to purchase a pereat from a state park where the race will be held the wount is recorded & Riscellaneous expense. Dee. 12 The company purchases racing supplies for $2.000 en account de indeplies include trophies for the top-finashing tous in each category, promotional shirts. mack foods and drinks for participants and field markers to prepare the racecourse. Dec. 15 The company receives $20.000 cash from a total of forty tend the race held Dec. 16 The company pay Victor's salary of $2.000 Dec. 31 The company pas dividend of $4.000 ($2.000 to Tomy and $2.000 to Suria). 31 Uring his personal money. Tome purchases a diandrit for $4.500. To surprise Surse by preparing that they cet married. Surie accepted they get married! Dec The following information relates to year-end adjusting entries as of December 31, 2021 a Depreciation of the mountain bikes purchased on July 8 and kayaks purchased on August 4 totals $8.000 b. Six months of the one year insurance policy purchased on July 1 has expired c. Four months of the one-year rental agreement purchased on September has expired. d. Of the $1.800 of office supplies purchased on July 4.$300 remains e Interest expense on the $30.000 loan obtained from the city council on August I should be recorded f. Of the $2,800 of racing supplies purchased on December 12, $200 remains g Suzie calculates that the company owes $14.000 in income taxes 6. Record closing entries as of December 31, 2021. (If no entry is required for a transaction/event, select " in the first account field.) View transaction list Journal entry worksheet 2 3 > Record the closing of revenue accounts. Note: Enter debits before credits. General Journal Date Dec 31, 2021 Debit Credit Record entry Clear entry View general journal Journal entry worksheet Record the closing of dividends account. Note: Enter debits before credits. Date Dec 31, 2021 General Journal Debit Credit Record entry Clear entry View general journal