58,000 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 kayaldng. 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 36,000 shares of common stock for Si each. Each share of stock represents a unit of ownership. Tony and Suzie wil act as co presidents of the company. The following transactions occur from July 1 through December 31. Jul. 1 Sell $10,000 of common atock to Suzis. Jul. 1 Sell $10,000 of work to Tony. Jul. 1 Purchase a one-year cance policy for $5,040 5420 per month) to corres injuries to participants during outdoor alinien. Jul. 2 Pay legal fees of $1,100 szociated with incorporation. Jul. 4 Purchase office applies of $1,700 on account. Jul. 1 Pay for advertising of $320 to a local sovpaper for an upcoming mountain biking clinic to be held on Jul. July 15. Attendere be charged $40 the day of the clinic. Purchase 10 mountain bikes, paying $19,400 cash. Jul. 15 Os the day of the clinic, Great Adventures receive cash of $2,000 from 50 bikers. Tony conducts the mountain biking clisic. Jul. 22 Because of the success of the tizatorstain biking clinic, Tony holds another mountain biking clinic and the company is $2,250. Jul. 24 Pay $740 to local radio station for advertising to appear immediately. A kayaking clinic will be held on Nequat 10, and attendees can pay $120 in adance or $170 on the day of the clinic. Jul. 3 Great Adventures receives Cash of $4,000 in advance from 4D kayakers for the upcoming kayak clinic. Great Adventures obtaina 542,000 low-sisteret loss to the company from the city council, which has recently pued an initiative encouraging business development related to outdoor activities. The loan in de in three years, and 6 ani interest is duu auch year on July 31. 4 The company purchase 1: paying $18,200 euh. 10 Twenty additional kayakuru pay $3,400 (5170 each), in addition to the 54,400 that was paid in advance on July , on the day of the cliente. Toay conducta the first kayak clinic, Aug. 17 Tony candecta necond kayak clinic, and the company receives $12,0DD caah. Arag. 24 ottice supplies of $1,900 purchased on July are paid in full. 1 to provide better storage of mountain bikes and kayaka when not in use, the company runts storage for one year, paying $3,146 $200 per month) is advance. Sep. 21 Tony candecta rock-climbing clinic. The company receives $24,500 cash. Oct. 17 Tony conducta an orienteering clinic. Participants practice how to understand topographical rap, read an altimates, use a copa, and orient through heavily voaded ra. The company receive 1 Pony decides to hold the company's first adventure race on December 15. Pour person tu vill race from checkpoint to checkpoint using combination of sountain biking, kayaking, orientering, trail running, and rock-climbing skills. The tirat tans in each category to complete all checkpointa in order wina. The entry toe for each te is $690. 3 so help organize and promote the race, Sony hirex his college tot, Victor. Victor will be paid 540 in salary for each team that competes in the race. lix salary will be paid after the race. The company pays $1,000 to purchase permit from a state park where the race will be held. The amount is recorded simultaneous expense. Dec. 12 The company purchases zacing supplies for $2,300 account due in 3D daya. Supplies include trophies the top-finishing team in each category, promotional shirta, anack foods and drinks for participants, and tied arkers to prepare the rececourse. Dec. 19 The copey receives $27,60 cash tra total of forty tumas, and the race is held. Dec. 16 The company pays Victor's unlary of $2,400. Dec. 31 The company pays dividend of 54,300 (52,150 to Tony and $2,250 to Suzie). Dec. 32 Daing his personal money, Tony purchase diamond ring for 53,600. Toey surprise Suzie by proposing that they got married. Suzie accepts and they get nutid! 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 $8.700. b. Six months of the one year Insurance policy purchased on July 1 has expired. Four months of the one year rental agreement purchased on September 1 has expired. d Of the $1,700 of office supplies purchased on July 4, $210 remains e Interest expense on the $42.000 loan obtained from the city council on August 1 should be recorded t Of the $2,300 of racing supplies purchased on December 12, $150 remains. 9 Suzle calculates that the company owes $13,400 in income taxes. Dec. Great Adventures Problem AP3-1 Part 5 5. For the period July 1 to December 31, 2021, prepare an income statement, statement of stockholders' equity and classified balance sheet Answer is not complete. Complete this question by entering your answers in the tabs below. Income Samt of Statement Stockholders Balance Sheet Equity For the period July 1 to December 31, 2021, prepare an income statement. GREAT ADVENTURES, Ine. Income Statement December 31, 2021 Ravenue Service Ravena (Clinic $ Service Revenue (Racing) B0,300 olol 4,350 Is B4,650 1,050 1,100 1,800 Total Revenue Expenses Advertising Expense Legal Feus Expanse Miscellaneous Expense Salaries Expanse Depreciation Experts Insurance Expert Rent Expense Supplies Expense (Office) Supplies Expense (Racing) Interest Expense Income Tax Expense 2,400 8,700 OOOOOOOOOOO 2,520 1,120 1,390 2,150 1,050 13,400 Total Expense 35,690 47,960 Income Statement Stmt of Stockholders Equity > Great Adventures Problem AP3-1 Part 5 5. For the period July 1 to December 31, 2021, prepare an income statement, statement of stockholders' equity and classified balance sheet Answer is not complete. Complete this question by entering your answers in the tabs below. Samt of Income Statement Stockholders Balance Sheet Equity For the period July 1 to December 31, 2021, prepare a statement of stockholders' equity. Al account balances on July 1 were zero. GREAT ADVENTURES, Ine. Statement of Stockholders' Equity For the Period Ended December 31, 2021 Retained Total Common Stock Stockholders Earnings Equity $ 20,000 0$ 20,000 3 27,960 47,950 (4,3001 (4,300) Add: Withdrawal by Owner Dividends 20,000 43,660S 83,660 Great Adventures Problem AP3-1 Part 5 5. For the period July 1 to December 31, 2021, prepare an income statement, statement of stockholders' equity and classified balance sheet Answer is not complete. Complete this question by entering your answers in the tabs below. Semt or Income Statement Stockholders Balance Sheet Equity Prepare a dassified balance sheet as of December 31, 2021. (Amounts to be deducted should be indicated by a minus sign.) GREAT ADVENTURES, Ine. Balance Sheet December 31, 2021 Assets Liabilities Current Assets Current Liabilities: Cash B3,290 Accounts Payable 2,900 Prepaid insurance 2,520 Interest Payable 1,050 Prepaid Rent 2,240 Income Tax Payable 13,400 Supplies (Office) 310 Supplies (Racing 150 Total Current Liabile 16,750 Notes Payable 42,000 Total Current Assets 93,510 Total Liabilities 58,750 Long-term assis Stockholders' Equity Equipment (Bikes) 19,400Common Stock 20,000 Equipment Kayak ) 18,200 Retained Earrings 43,660 Accumulated Depreciation (9,700 Total Stockholders' Equity 63,660 Total 15 122,410 Total Liabies and Stockholders' Equity $ 122,410 OOOOO Tololo OOO OOO Great Adventures Problem AP3-1 Part 5 5. For the period July 1 to December 31, 2021, prepare an income statement, statement of stockholders' equity and classified balance sheet Answer is not complete. Complete this question by entering your answers in the tabs below. Samt of Income Statement Stockholders Balance Sheet Equity For the period July 1 to December 31, 2021, prepare a statement of stockholders' equity. Al account balances on July 1 were zero. GREAT ADVENTURES, Ine. Statement of Stockholders' Equity For the Period Ended December 31, 2021 Retained Total Common Stock Stockholders Earnings Equity $ 20,000 0$ 20,000 3 27,960 47,950 (4,3001 (4,300) Add: Withdrawal by Owner Dividends 20,000 43,660S 83,660 Great Adventures Problem AP3-1 Part 5 5. For the period July 1 to December 31, 2021, prepare an income statement, statement of stockholders' equity and classified balance sheet Answer is not complete. Complete this question by entering your answers in the tabs below. Semt or Income Statement Stockholders Balance Sheet Equity Prepare a dassified balance sheet as of December 31, 2021. (Amounts to be deducted should be indicated by a minus sign.) GREAT ADVENTURES, Ine. Balance Sheet December 31, 2021 Assets Liabilities Current Assets Current Liabilities: Cash B3,290 Accounts Payable 2,900 Prepaid insurance 2,520 Interest Payable 1,050 Prepaid Rent 2,240 Income Tax Payable 13,400 Supplies (Office) 310 Supplies (Racing 150 Total Current Liabile 16,750 Notes Payable 42,000 Total Current Assets 93,510 Total Liabilities 58,750 Long-term assis Stockholders' Equity Equipment (Bikes) 19,400Common Stock 20,000 Equipment Kayak ) 18,200 Retained Earrings 43,660 Accumulated Depreciation (9,700 Total Stockholders' Equity 63,660 Total 15 122,410 Total Liabies and Stockholders' Equity $ 122,410 OOOOO Tololo OOO OOO