and Suzle graduate from college in May 2024 and begin developing their new business. They begin by offering clinics for basic oor activitles such as mountain biking or kayaking. Upon developing a customer base, they'll hold thelr first adventure races. e races will Involve four-person teams that race from one checkpoint to the next using a combination of kayaking, mountain g. orlenteering. and trall running. In the long run, they plan to sell outdoor gear and develop a ropes course for outdoor uslasts. uly 1, 2024, Tony and Suzle organize their new company as a corporation, Great Adventures Incorporated The articles of poration state that the corporatlon will sell 32000 shares of common stock for $1 each. Each share of stock represents a unit of ership. Tony and Suzle will act as co-presidents of the company. The following business actlvitles occur during July for Great entures. Sel1 $19,0 of connon stock to Suzle. Sel1 $19, of connon stock to Tony. Purchase a one-year insurance policy for $4,890 ( $400 per month) to cover injuries to participants durling outdoor clinics. Pay legal fees of $1,50 assoclated with incorporation. Purchase office supplies of $1,809 on account. Pay $369 to a local newspaper for advertising to appear inmediately for an upcoming mountain biking clinic to be held on July 15. Attendees will be charged \$5e the day of the clinic. Purchase 10 mountain blkes, payling $12,090 cash. On the day of the clinic, Great Adventures recelves cash of $2,00 in total from 4 blkers. Toriy and Suzie conduct the mountalin blking clinic. Decause of the success of the flrst nountain biking clinic, Tony and suzle hold another mountain blking clinic and the conpariy recelves $2,38. Pay $709 to a local radio station for advertising to appear immediately. A kayaking clinic will be held on August 10 , and attendees can pay $190 in advance or $150 on the day of the clinic. Great Adventures receives total cash of $4,0 in advance fron 40 kayakers for the upcoming kayak clinic. 39 Great adveritures receives total cash of st 1 Great Adventures obtains a $30,000 low-interest loari for the corpany fron the city council, which has recently passed an initiative encouragling business development related to cutdoor activities. The loan is due in three years, and 6\% arinal interest is due each year on July 31. The company purchases 14 kayaks, paying $28,699 cash. Tony and Suzie conduct the first kayak clinic. In addition to the \$4, ege that was recelved in advance from kayakers on July 30 , the company receives additlonal cash of $3,99 from 29 new kayakers on the day of the clinic. Tony and Suzie conduct a second kayak clinic, and the conpany receives \$10, 50 cash. office supplies of $1,809 punchased on July 4 are paid in ful1. st 24 ember 1 To provide better storage of mountain bikes and kayaks when not in use, the conpariy rents a storage shed for one year, paying $2,400 ( $200 per month) in advance. ember 21 Tory and Suzie conduct a rock-climbling clinic. The conpary receives \$13,209 cash. ber 17 Tony and Suzie conduct an orienteering clinic. Participants practice how to understand a topographical nap, read an altimeter, use a compass, and orient through heavily wooded areas. The conpany receives $17,90 cash. Tory and Suzie declde to hold the company's first adventure race on Decenber 15 . Four-person teams will race from checkpoint to checkpoint using a conbination of nountain biking, kayaking, orlenteering, trail running, and rock- climbing skills. The first tean in each category to complete all checkpolints in order wins. The entry fee for each team is $500. To help organize and promote the race, Tony hires his college roonmate, Victor. Victor will be paid s5e in salary for each team that competes in the race. His salary will be paid after the race. The company pays $1,200 to purchase a permit fron a state park where the race will be held. The amount is recorded as a miscellariecus expense. The company purchases racing supplies for $2, gee on account due in 30 days. Supplies lnclude trophles for the top- finishing teams in each category, promotional shirts, snack foods and drinks for participants, and field markers to prepare the racecourse. The company receives $2, cash from a total of forty teams, and the race is held. mber 15 The conpany recelves $20,000 cash from a total of forty teams, and the race is held. mber 16 The conpany pays victor's salary of $2,069. mber 31 The conpany pays a dividend of $4,($2, to Tony and $2,90 to Suzie). mber 31 Using his personal noney, Tony purchases a diamond ring for $4,500. Tony surprises suzle by proposing that they get married. Suzie accepts and they get narried! following information relates to year-end adjusting entrles as of December 31, 2024. epreclation of the mountain bikes purchased on July 8 and kayaks purchased on August 4 totals $8,000. x months' of the one-year insurance policy purchased on July 1 has expired. ur months of the one-year rental agreement purchased on September 1 has expired. the $1,800 of office supplies purchased on July 4,$300 remains. terest expense on the $30,000 loan obtalned from the clty councll on August 1 should be recorded. f the $2,800 of racing supplies purchased on December 12,$200 remalns. 1. Record each of the transactions listed above in the 'General Journal' tab (these are shown as items 1 to 27). Review the 'General Ledger' and the 'Trial Balance' tabs to see the effect of the transactions on the account balances. 2. Record the adjusting entries in the 'General Journal' tab (these are shown as items 28 to 34), 3. Review the adjusted 'Trial Balance' as of December 31,2024. 4. Prepare an income statement for the period ended December 31, 2024, in the 'Income Statement' tab. 5. Prepare a statement of stockholder's equity for the period ended December 31,2024 , in the 'Statement of Stockholder's Equity' tab. 6. Prepare a classified balance sheet as of December 31, 2024 in the 'Balance Sheet' tab. 7. Record the closing entries in the 'General Journal' tab (these are shown as items 35 to 37 )