$1.$ ?Record each of the transactions and the necessary closing entries for the year

$2.$ ?Calculate Net Income

$3.$ ?Prepare a Classified Balance Sheet

David and Beth 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, David and Beth organize their new company as a corporation, Outdoor Enthusiast Incorporated. The articles of incorporation state that the corporation will sell 32,000 shares of common stock for $1 each. Each share of stock represents a unit of ownership. David and Beth will act as co-presidents of the company. The following business activities occur during July for Outdoor Enthusiast. 1-Jul Sell $10,000 of common stock to Suzie. 1-Jul 1-Jul 2-Jul 4-Jul 7-Jul 8-Jul 15-Jul 22-Jul 24-Jul 30-Jul 1-Aug 4-Aug 10-Aug 17-Aug 24-Aug 1-Sep 21-Sep 17-Oct 1-Dec Sell $10,000 of common stock to Tony. Purchase a one-year insurance policy for $4,800 ($400 per month) to cover injuries to participants during outdoor clinics. Pay legal fees of $1,500 associated with incorporation. Purchase office supplies of $1,800 on account. Pay $300 to a local newspaper for advertising of $300 to appear immediately for an upcoming mountain biking clinic to by held on July 15. Purchase 10 mountain bikes, paying $12,000 cash. On the day of the clinic, Outdoor Enthusiast receives cash of $2,000 from 40 bikers. Because of the success of the first mountain biking clinic, Tony and Suzie hold another mountain biking clinic, and the company receives $2,300. Pay $700 to a local radio station for advertising to appear immediately. A kayaking clinic will be held on August 10, and attendees can pay $100 in advance or $150 on the day of the clinic. Outdoor Enthusiast receives cash of $4,000 in advance from 40 kayakers for the upcoming kayak clinic. Outdoor Enthusiast obtains a $30,000 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. The company purchases 14 kayaks, paying $28,000 cash. Tony and Suzie conduct the first kayak clinic. In addition to the $4,000 that was received in advance from kayakers on July 30, the company receives additional cash of $3,000 from 20 new kayakers on the day of the clinic. Tony and Suzie conduct a second kayak clinic, and the company receives $10,500 cash. Office supplies of $1,800 purchased on July 4 are paid in full. To provide better storage of mountain bikes and kayaks when not in use, the company rents a storage shed for one year, paying $2,400 ($200 per month) in advance. Tony and Suzie conduct a rock-climbing clinic. The company receives $13,200 cash. Tony and Suzie conduct 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 $17,900 cash. Tony and Suzie decide 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 $500.