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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 $17,600 of common stock to Suzie. July 1 Sell $17,000 of comnon stock to Tony. July 1 Purchase a one-year insurance policy for $4,440 ( $370 per month) to cover injuries to July 2 participants during outdoor clinics. July 4 Parchase legal fees of $1,400 associated with incorporation. July 7 Pay $300 office supplies of $1,700 on account. July 8 biking clinic to be held on for advertising to appear immediately for an upcoming mountain July is Purchase 10 mountain bikes, paying $18,200 cash. July 22 and Suzie conducts the mountain biking clinic. July 24 mecause of the success of the first nountain biking clinic. Tony and Suzie holds another July 24 Pay $750 to a local radio station company receives $4,400. July 30 be held on August 10 , and attendees can pay $100 in advance immediately. A kayaking clinic will Great Adventures receives total cash of $7,00$ in advance $100 in $150 on the day of the clinic. kayak clinic. The following transactions occur over the remainder of 2024. August 1 Great Adventures obtains a $42,000 low-interest Which has recently passed an initiative encouraging for the company from the city council, activities. The loan is an initiative encouraging business development The following transactions occur over the remainder of 2024 . August 1 Great Adventures obtains a $42,000 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 68 annual interest is due each year on July 31. August 4 The company purchases 14 kayaks, paying $19,500 cash. August 10 Tony and Suzie conduct the first kayak clinic. In addition to the $7,000 that was received in advance from kayakers on July 3e, the company receives additional cash of $3, 000 from twenty new kayakers on the day of the clinic. August 17 Tony and Suzie conducts a second kayak clinic, and the company receives $12,500 cash. August 24 office supplies of $1,700 purchased on July 4 are paid in full. September 1 To provide better storage of mountain bikes and kayaks when not in use, the company rents a storage shed for one year, paying $3,480 ( $290 per month) in advance. September 21 Tony and Suzie conduct a rock-climbing clinic. The company receives $13,600 cash. October 17 Tony and Suzie conduct an orienteering clinie. Participants practice how to understand a topographical nap, read an altimeter, use a compass, and orient through heavily wooded areas. The company receives $18,000 cash. December 1 Tony and Suzie decide to hold the company's first adventure race on Decenber 15 . Four-person teans 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 $690. December 5 To help organize and promote the race, Tony hires his college roonmate, victor. Victor witl be paid $58 in salary for each tean that competes in the race. His salary will be paid after the race. December 8 The company pays $1,200 to purchase a permit from a state park where the race will be held. The amount is recorded as a miscellaneous expense. December 12 The conpany purchases racing supplies for $2,400 on account due in 30 days. Supplies include trophies for the top-finishing teams in each category, promotional shirts, snack foods and drinks for participants, and field markers topprepare the racecourse. Decenber 15 The company receives $27,600 cash from a totad of forty teans, and the race is held. December 16 The company pays victor's salary of $2,000. December 31 The company pays a dividend of $4,700($2,350 to Tony and $2,350 to $uz1e). Decenber 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 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 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. Suzic calculates that the company owes $13,200 in income taxes. 4. Prepare an adjusted trial balance as of December 31, 2024. $$\text{Unknown environment 'tabular'}$$ 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 $17,600 of common stock to Suzie. July 1 Sell $17,000 of comnon stock to Tony. July 1 Purchase a one-year insurance policy for $4,440 ( $370 per month) to cover injuries to July 2 participants during outdoor clinics. July 4 Parchase legal fees of $1,400 associated with incorporation. July 7 Pay $300 office supplies of $1,700 on account. July 8 biking clinic to be held on for advertising to appear immediately for an upcoming mountain July is Purchase 10 mountain bikes, paying $18,200 cash. July 22 and Suzie conducts the mountain biking clinic. July 24 mecause of the success of the first nountain biking clinic. Tony and Suzie holds another July 24 Pay $750 to a local radio station company receives $4,400. July 30 be held on August 10 , and attendees can pay $100 in advance immediately. A kayaking clinic will Great Adventures receives total cash of $7,00$ in advance $100 in $150 on the day of the clinic. kayak clinic. The following transactions occur over the remainder of 2024. August 1 Great Adventures obtains a $42,000 low-interest Which has recently passed an initiative encouraging for the company from the city council, activities. The loan is an initiative encouraging business development The following transactions occur over the remainder of 2024 . August 1 Great Adventures obtains a $42,000 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 68 annual interest is due each year on July 31. August 4 The company purchases 14 kayaks, paying $19,500 cash. August 10 Tony and Suzie conduct the first kayak clinic. In addition to the $7,000 that was received in advance from kayakers on July 3e, the company receives additional cash of $3, 000 from twenty new kayakers on the day of the clinic. August 17 Tony and Suzie conducts a second kayak clinic, and the company receives $12,500 cash. August 24 office supplies of $1,700 purchased on July 4 are paid in full. September 1 To provide better storage of mountain bikes and kayaks when not in use, the company rents a storage shed for one year, paying $3,480 ( $290 per month) in advance. September 21 Tony and Suzie conduct a rock-climbing clinic. The company receives $13,600 cash. October 17 Tony and Suzie conduct an orienteering clinie. Participants practice how to understand a topographical nap, read an altimeter, use a compass, and orient through heavily wooded areas. The company receives $18,000 cash. December 1 Tony and Suzie decide to hold the company's first adventure race on Decenber 15 . Four-person teans 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 $690. December 5 To help organize and promote the race, Tony hires his college roonmate, victor. Victor witl be paid $58 in salary for each tean that competes in the race. His salary will be paid after the race. December 8 The company pays $1,200 to purchase a permit from a state park where the race will be held. The amount is recorded as a miscellaneous expense. December 12 The conpany purchases racing supplies for $2,400 on account due in 30 days. Supplies include trophies for the top-finishing teams in each category, promotional shirts, snack foods and drinks for participants, and field markers topprepare the racecourse. Decenber 15 The company receives $27,600 cash from a totad of forty teans, and the race is held. December 16 The company pays victor's salary of $2,000. December 31 The company pays a dividend of $4,700($2,350 to Tony and $2,350 to $uz1e). Decenber 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 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 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. Suzic calculates that the company owes $13,200 in income taxes. 4. Prepare an adjusted trial balance as of December 31, 2024. $$\text{Unknown environment 'tabular'}$$

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