2. Prepare a post-closing trial balance as of December 31, 2021 GREAT ADVENTURES, Inc Pose-dosing Trial Balance December 31, 2021 Accounts Debit Cash Prepaid Insurance Prepaid Rent Supplies (Office) Supplies (Racing) Equipment (Bikes) Equipment (Kayaks) Accumulated Depreciation Accounts Payable Income Tax Payable Interest Payable Notes Payable Common Stock Retained Earnings Dividends Service Revenue (Clinic) Service Revenue (Racing) Advertising Expense Depreciation Expense Income Tax Expense Insurance Expense Interest Expense Legal Fees Expense Miscellaneous Expense Rent Expense Saines Expense Supples Expense office Supplen Expense (Racing) 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 34,000 shares of common stock for $1 each. Each share of stock Tony and Suzie will act as co-presidents of the company. The following transactions OCCL from July 1 through December 31. Jul. 1 Sell $17,000 of common stock to Suzie. Jul 1 Sell $17,099 of common stock to Tony Jul. 1 Purchase a one-year insurance policy for $3,840 ($320 per month) to cover injuries to participants during outdoor clinics. Jul. 2 Pay legal fees of $1,100 associated with incorporation. Jul. 4 Purchase office supplies of $1,700 on account. Jul 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 $50 on the day of the clinic Jul. B Purchase 10 mountain bikes, paying $15,000 cash. Dul, 15 On the day of the clinic, Great Adventures receives cash of $2,000 from 40 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 $2,400. Jul 24 Pay $780 to a local radio station for advertising to appear imediately. A kayaking clinic will be held on August 10, and attendees can pay $150 in advance or $200 on the day of the clinic JUL. 30 Great Adventures receives cash of $19,500 in advance from 70 kayakers for the upcoming kayak clinic. Aug. Great Adventures obtains a $35,000 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 0% annual interest is due each year on July 31. A. The company purchases 14 kayaks, paying $23,400 cash Ag Twenty additional kayakers pay $4,009 (5200 wach), in addition to the $10,500 that was paid in advance uly 30, on the day of the cente. Tony conducts the first kayak clinic Aug 17 Tony conducts a second kayak clinic, and the company receives $12.400 cash Jul 30 Great Adventures receives cash of $10,500 in advance from 70 kayakers for the upcoming Kayak clinic Aug 1 Great Atwentures obtains a $35,000 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 anal interest is due each year on July 31. Aug. 4 The company purchases 14 kayaks, paying $23, 480 cash. Aug. 10 Twenty additional kayakers pay $4.000 ($200 each), in addition to the $10,500 that was paid in advance on July 30, on the day of the clinic. Torty conducts the first kayak clinic. Aug. 17 Tony conducts a second kayak clinic, and the company receives $12,400 cash. Aug, 24 office supplies of $1,700 purchased on July 4 are paid in full. Sep. 1 To provide better storage of mountain bikes and kayaks when not in use, the company rents a storage shed for one year, paying $4,680 ($390 per month) in advance. Sep. 21 Tony conducts a rock-climbing clinic. The company receives $14,700 cash. Oct. 17 Tony conducts 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. Dec. 1 Tony decides 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 $590. Dec. To help organize and promote the race, Tony hires his college roommate, Victor Victor will be paid $40 in salary for each team that competes in the race. His salary will be paid after the race. Dec 8 The company pays $1,700 to purchase a permit from a state park where the race will be held. The amount is recorded as a miscellaneous expense. Dec. 12 The company purchases racing supplies for $2,600 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 to prepare the racecourse. Dec. 15 The company receives $23,600 cash from a total of forty teams, and the race is held Dec. 16 The company pays Victor's salary of $1,600. Dec. 31 The company pays a dividend of $4,400 ($2,200 to Tony and $2,200 to Suzie) Dec. 31 Using his personal money, Tony purchases a diamond ring for $5,300. Tony surprises Suzie by proposing that they get married. Surie accepts and they get married! 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 $9.000. 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 1has expired d. Of the $1.700 of office supplies purchased on July 4, $260 remains. e. Interest expense on the 535,000 loan obtained from the city council on August I should be recorded. t of the $2.500 of racing supplies purchased on December 12, 5260 remains g. Suzie calculates that the company owes $14.000 in income taxes