36 ances 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 30,000 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. Jul. 1 Sell $15,000 of common stock to Suzle. Jul. 1 Sell $15,000 of common stock to Tony. Jul. 1 Purchase a one-year insurance policy for $6,000 ($500 per month) to cover injuries to participants during outdoor clinics. 4 Purchase office supplies of $1,600 on account. Jul. 2 Pay legal fees of $1,700 associated with incorporation. Jul. Jul. Jul. 7 Pay $280 to a local newspaper for advertising to appear immediately for an upcoming mountain biking clinic to be held on July 15. Attendees will be charged $30 the day of the clinic. 8 Purchase 10 mountain bikes, paying $10,700 cash. Jul. 15 On the day of the clinic, Great Adventures receives cash of $1,500 from 50 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 $1,800. Jul. 24 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 $120 in advance or $170 on the day of the clinic. Jul. 30 Great Adventures receives cash of $8,400 in advance from 70 kayakers for the upcoming kayak clinic. Great Adventures Problem AP2-1 Part 3 3. Prepare a trial balance. (The items in the Triel Balance should be grouped as follows: Assets, Linbilities, Stockholders' Equity, Revenue and Expenses.) GREAT ADVENTURES, INC. Trial Balance July 31, 2021 Accounts Debit Credit Cash Totals