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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 articies of incorporation state that the corporation will sell 20,000 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 Sel1 510,000 of conmon steck to suzie. July 1 Sell 519 , eed of common stock to Tony. July 1 Purchase a one-year insurance policy for $4,920 (\$410 per month) to cover Injuries to participants during outdoor Duly 2 Pay lefal fees of $1,000 associated with incorporation. July 4 Purchase office supplifes of $1, 40e an account. July 7 Pay \$16e to a local nevspaper for advertising to appear imediately for an upcoming mountain biking clinic to be held on zuly 15. Attendees will be charied $50 on the doy of the clinic. July 0 Purchase 10 eountain bikes, paylng $14,20e cash. Jaly 15 On the day of the clinic, Great Adventures receives cash of $2,600 In total from 40 bikers. Tony and 5uzie conducts the mountain biking clinic. July 22 Because of the success of the first mountain biking clinic, Tony and suzie holds another mountain biking clinic and the company receives $2,400. July 24 Pay 87 e to e local radio station for advertising to appear impediately. A kayaking elinic will be held on August 1e, and attendees can pay $130 in advance or $180 on the day of the clinic. Great Adventures recelves total cash of $6,500 in advance from 50 kayakers for the upcoming kayak cilnic. the follouing transactions occur over the remainder of 2024. July 38 Great Adventures receives tatal cash of $6,508 in advance from 50 kayakers for the upcoming Kayak clinic. The folloaing transactions occur over the renainder of 2024 . August 1 Great Adventures obtains a $46, dee low-interest loan for the company fron the city council, which has recent ly passed an initiative encouraging business development related to outdoor activities. The loan is due in three years, and 6x. annual interest is due each year on July 31 . August 4 the company purchases 14 kayaks, paying 516,660 cash. August 10 Tony and surle conduct the first kayak cilnic. In addition to the $6,500 that was received in advance from kayakers on. July 30 , the company receives addit fonal cash of $3,609 from twenty new kayakers on the day of the clinic. August 17 Tony and Suzie conducts a second kayak clinic, and the company receives $11,909 cash. August 24 offlce supplles of $1,400 purchased on july 4 are paid in full. Septenber 1 to provide better storage of mountain bikes and kayaks when not in use, the company rents a istorage shed for one year; paying $4,800($400 per month) in advance. Keptenber 21 Tony and Suzie conduct a rock-clinbing clinic. The conpany receives $14,109 cash. October 17 Tony and Suzie conduct an orienteering clinic. Particlpants practice how to understand a topographical- map, read an altineter, use a compass, and orient throuph heavily wooded areas. The conpany recelves \$16, e00 cash. December 1 Tony and Suzle decide to hold the conpany's first adventure race on Deceber is. four-person teans will race from. checkpoint to checkpoint using a combination of nountain biking, koyaking, orienteering, trail running. and rockclimbing skills. The first tean in each category to complete all checkpoints in order wins. The entry fee for each tean is 2550. Decenber 5 To help organite and pronote the race, Tony hires his college roomete, victor. Victor will be paid \$6e in salary for. each team that competes in the cace. Mis salary will be pald after the race. Decenher 8 . The company pays $1,100 to parchase a pereit from a state park where the race ulil be held. The anount is recorded as a miscellaneous ixpense. Oecenber 12 The company purchases racing supplies for $2,100 an account due in 30 deys. Supplles Include trophies for the topfinishing teams in each category, promotional shirts, snack foods and drinks for participants, and fleld markers to prepare the racecoursit. December 15 . The conpany recefves $22,000 cash from a total of forty teoes, and the race is held. Decesber if the company pays victor's salary of 52,400 . Deceaber.31 The conpany pays a dividend of $3,200,($1,600 to fony and $1,609 to 5at=le. Decenberi 11 Using his personal money. Tony purchases a dianond ring for 55,100 . Tony surprises suzie by proposing that they get norried, sucie accents and they atet sarriedt 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 totais $6.200 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. Or the $1,400 of office supplies purchased on July 4,$230 remains. e. Interest expense on the $46,000 loan obtained from the city council on August 1 should be recorded. f. Of the $2,100 of racing supplies purchased on December 12,$220 remains. 9. Suzie calculates that the company owes $13,400 in income taxes. The balance sheet is the accounting equation: Assets = Labilities + Equity. Each asset and liability account is reported separately on the balance sheet. 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 articies of incorporation state that the corporation will sell 20,000 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 Sel1 510,000 of conmon steck to suzie. July 1 Sell 519 , eed of common stock to Tony. July 1 Purchase a one-year insurance policy for $4,920 (\$410 per month) to cover Injuries to participants during outdoor Duly 2 Pay lefal fees of $1,000 associated with incorporation. July 4 Purchase office supplifes of $1, 40e an account. July 7 Pay \$16e to a local nevspaper for advertising to appear imediately for an upcoming mountain biking clinic to be held on zuly 15. Attendees will be charied $50 on the doy of the clinic. July 0 Purchase 10 eountain bikes, paylng $14,20e cash. Jaly 15 On the day of the clinic, Great Adventures receives cash of $2,600 In total from 40 bikers. Tony and 5uzie conducts the mountain biking clinic. July 22 Because of the success of the first mountain biking clinic, Tony and suzie holds another mountain biking clinic and the company receives $2,400. July 24 Pay 87 e to e local radio station for advertising to appear impediately. A kayaking elinic will be held on August 1e, and attendees can pay $130 in advance or $180 on the day of the clinic. Great Adventures recelves total cash of $6,500 in advance from 50 kayakers for the upcoming kayak cilnic. the follouing transactions occur over the remainder of 2024. July 38 Great Adventures receives tatal cash of $6,508 in advance from 50 kayakers for the upcoming Kayak clinic. The folloaing transactions occur over the renainder of 2024 . August 1 Great Adventures obtains a $46, dee low-interest loan for the company fron the city council, which has recent ly passed an initiative encouraging business development related to outdoor activities. The loan is due in three years, and 6x. annual interest is due each year on July 31 . August 4 the company purchases 14 kayaks, paying 516,660 cash. August 10 Tony and surle conduct the first kayak cilnic. In addition to the $6,500 that was received in advance from kayakers on. July 30 , the company receives addit fonal cash of $3,609 from twenty new kayakers on the day of the clinic. August 17 Tony and Suzie conducts a second kayak clinic, and the company receives $11,909 cash. August 24 offlce supplles of $1,400 purchased on july 4 are paid in full. Septenber 1 to provide better storage of mountain bikes and kayaks when not in use, the company rents a istorage shed for one year; paying $4,800($400 per month) in advance. Keptenber 21 Tony and Suzie conduct a rock-clinbing clinic. The conpany receives $14,109 cash. October 17 Tony and Suzie conduct an orienteering clinic. Particlpants practice how to understand a topographical- map, read an altineter, use a compass, and orient throuph heavily wooded areas. The conpany recelves \$16, e00 cash. December 1 Tony and Suzle decide to hold the conpany's first adventure race on Deceber is. four-person teans will race from. checkpoint to checkpoint using a combination of nountain biking, koyaking, orienteering, trail running. and rockclimbing skills. The first tean in each category to complete all checkpoints in order wins. The entry fee for each tean is 2550. Decenber 5 To help organite and pronote the race, Tony hires his college roomete, victor. Victor will be paid \$6e in salary for. each team that competes in the cace. Mis salary will be pald after the race. Decenher 8 . The company pays $1,100 to parchase a pereit from a state park where the race ulil be held. The anount is recorded as a miscellaneous ixpense. Oecenber 12 The company purchases racing supplies for $2,100 an account due in 30 deys. Supplles Include trophies for the topfinishing teams in each category, promotional shirts, snack foods and drinks for participants, and fleld markers to prepare the racecoursit. December 15 . The conpany recefves $22,000 cash from a total of forty teoes, and the race is held. Decesber if the company pays victor's salary of 52,400 . Deceaber.31 The conpany pays a dividend of $3,200,($1,600 to fony and $1,609 to 5at=le. Decenberi 11 Using his personal money. Tony purchases a dianond ring for 55,100 . Tony surprises suzie by proposing that they get norried, sucie accents and they atet sarriedt 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 totais $6.200 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. Or the $1,400 of office supplies purchased on July 4,$230 remains. e. Interest expense on the $46,000 loan obtained from the city council on August 1 should be recorded. f. Of the $2,100 of racing supplies purchased on December 12,$220 remains. 9. Suzie calculates that the company owes $13,400 in income taxes. The balance sheet is the accounting equation: Assets = Labilities + Equity. Each asset and liability account is reported separately on the balance sheet

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