1 Ints eBook Tony and Suzie graduate from college in May 2018 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, 2018, Tony and Suzie organize their new company as a corporation, Great Adventures Inc. The articles of incorporation state that the corporation will sell 23,000 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. 1 Purchase a one-year insurance policy for $5,040 ($420 per month) to cover Injuries to participants during outdoor clinics. Jul, 1 Sell $11,500 of common stock to Suzie. Print Jul. 1 Sell $11,500 of common stock to Tony. Jul. Jul. References Jul. Jul. Jul. 2 Pay legal fees of $1,000 associated with incorporation. 4 Purchase office supplies of $1,800 on account. 7 Pay for advertising of $210 to a local newspaper for an upcoming mountain. biking clinic to be held on July 15. Attendees will be charged $60 on the day of the clinic. 8 Purchase 10 mountain bikes, paying $11,700 cash. Jul. 15 On the day of the clinic, Great Adventures receives cash of $3,600 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 $4,050. Jul. 24 Pay for advertising of $670 to a local radio station for a kayaking clinic to be held on August 10. Attendees can pay $130 in advance or $180 on the day of the clinic. Jul. 30 Great Adventures receives cash of $9,100 in advance from 70 kayakers for the upcoming kayak clinic. Aug. 1 Great Adventures obtains a $33,000 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 $14,300 cash. Aug. 10 Twenty additional kayakers pay $3,600 ($180 each), in addition to the $9,100