5. For the period July 1 to December 31, 2024, prepare an income statement, statement of stockholders equity and classified balance sheet.
For the period July 1 to December 31, 2024, prepare an income statement.
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| | | GREAT ADVENTURES, INCORPORATED | | Income Statement | | December 31, 2024 | | Revenues: | | | | | | | | | | | | | | | | Total Revenues | | $0 | | Expenses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Total Expenses | | 0 | | | | $0 | |
For the period July 1 to December 31, 2024, prepare a statement of stockholders equity. All account balances on July 1 were zero.
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| | | GREAT ADVENTURES, INCORPORATED | | Statement of Stockholders Equity | | For the Period Ended December 31, 2024 | | | Common Stock | Retained Earnings | Total Stockholders' Equity | | | | | | | | | | | | | | | | | | | | | | | | | | |
Prepare a classified balance sheet as of December 31, 2024. (Amounts to be deducted should be indicated by a minus sign.)
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| | | GREAT ADVENTURES, INCORPORATED | | Balance Sheet | | December 31, 2024 | | Assets | | Liabilities | | | Current Assets: | | Current Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | Total Current Liabilities | 0 | | | | | | | Total Current Assets | 0 | Total Liabilities | 0 | | Long-term Assets: | | Stockholders' Equity | | | | | | | | | | | | | | | | | | | | Total Stockholders Equity | 0 | | Total Assets | $0 | Total Liabilities and Stockholders Equity | $0 | |
Tony and Suzie 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, Tony and Suzie organize their new company as a corporation, Great Adventures Incorporated The articles of incorporation state that the corporation will sell 26,000 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. July 1 Sell $13,000 of common stock to Suzie. July 1 Sell $13,000 of common stock to Tony. July 1 Purchase a one-year insurance policy for $4,440 ( $370 per month) to cover injuries to participants during outdoor clinics. July 2 Pay legal fees of $1,700 associated with incorporation. July 4 Purchase office supplies of $2,000 on account. July 7 Pay $360 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 $60 the day of the clinic. July 8 July 15 July 22 July 24 July 30 The following transactions occur over the remainder of 2024 . August 1 August 4 August 10 August 17 August 24 september 1 September 21 Tony and Suzie conduct a rock-climbing clinic. The company receives $13,500 cash. october 17 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 $19,800 cash. December 1 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 $670. December 5 To help organize and promote the race, Tony hires his college roommate, victor. victor will be paid \$60 in salary for each team that competes in the race. His salary will be paid after the race. December 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. December 12 The company purchases racing supplies for $2,100 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. December 15 The company receives $26,800 cash from a total of forty teams, and the race is held. December 16 The company pays victor's salary of $2,400. December 31 The company pays a dividend of $4,100 ( $2,050 to Tony and $2,050 to Suzie). December 31 Using his personal money, Tony purchases a diamond ring for $4,100. Tony surprises Suzie by proposing that they get married. Suzie accepts and they get married! The following information relates to year-end adjusting entries as of December 31, 2024. a. Depreciation of the mountain bikes purchased on July 8 and kayaks purchased on August 4 totals $7,600. 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 $2,000 of office supplies purchased on July 4,$270 remains. e. Interest expense on the $41,000 loan obtained from the city council on August 1 should be recorded. f. Of the $2,100 of racing supplies purchased on December 12,$150 remains. g. Suzie calculates that the company owes $13,700 in income taxes
