5. For the period July 1 to December 31, 2021, prepare an income statement, statement of stockholders equity and classified balance sheet.

Jul. 1 Sell $10,000 of common stock to Suzie. Jul. 1 Sell $10,000 of common stock to Tony. Jul. 1 Purchase a one-year insurance policy for $5,040 ($420 per month) to cover injuries to participants during outdoor clinics. 2 Pay legal feen of $1,400 associated with incorporation. Jul. 4 Purchase office supplies of $1,900 on account. Jul. 7 Pay for advertising of $290 to a local newspaper for an upcoming mountain biking clinic to be held on July 15. Attendees will be charged $40 on the day of the clinic. Jul. 8 Purchase 10 mountain bikes, paying $19,900 cash. Jul. 15 On the day of the clinic, Great Adventures receives cash of $3,200 from 80 bikers. Tony conducta 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 $3,600. Jul. 24 Pay $720 to a local radio station for advertising to appear immediately. A kayaking clinic will be held on Auqust 10, and attendees can pay $130 in advance or $180 on the day of the clinic. Jul. 30 Great Adventures receives canh 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 cach year on July 31. Aug. The company purchases 14 kayaka, paying $22,400 cash. Aug. 10 Twenty additional kayakera pay $3,600 ($180 cach), in addition to the $9, 100 that was paid in advance on July 30, on the day of the clinic. Tony conducts the first kayak clinic. Aug. 17 Tony conducts a second kayak clinic, and the company receives $11,200 cash. Aug. 24 Office supplies of $1,900 purchased on July 4 are paid in full. Sep. 1 To provide better storage of mountain bikes and kayako when not in use, the company rents a storage shed for one year, paying $2,760 ($230 per month) in advance. Sep. 21 Tony conducts a rock-climbing clinic. The company receives $13,300 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 $19,800 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 akilla. The first team in each category to complete all checkpoints in order wins. The entry fee for each team is $500. Dec. 5 To help organize and promote the race, Tony hiren his college roommate, victor. Victor will be paid $70 in salary for each team that competes in the race. His salary will be paid after the race. Dec. 8 The company pays $1,100 to purchase a permit from a state park where the race will be held. The amount is recorded an a miscellaneous expense. Dec. 12 The company purchases racing supplies for $2,900 on account duc in 30 days. Supplies include trophies for the top-finishing teams in each category, promotional shirts, anack foods and drinks for participants, and field markers to prepare the racecourse. Dec. 15 The company receives $20,000 cash from a total of forty teams, and the race is held. Dec. 16 The company pays Victor's salary of $2,800. Dec. 31 The company pays a dividend of $3,500 ($1,750 to Tony and $1,750 to Suzie). Dec. 31 Using his personal money, Tony purchases a diamond ring for $5,400. Tony surprises Suzie by proposing that they get married. Su le accept 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 $8,600. 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. Of the $1,900 of office supplies purchased on July 4, $270 remains. e. Interest expense on the $33,000 loan obtained from the city council on August 1 should be recorded. 1. Of the $2,900 of racing supplies purchased on December 12. $140 remains. g. Suzie calculates that the company owes $14,500 in income taxes