BOOK erences 1 Sell $13,000 of common stock to Suzie. 1 Sell $13,000 of stock to Tony. Jul, 1 Purchase a one-year insurance policy for $4,800 (5400 per month) to cover injuries to participants during outdoor clinics Jul.2 Pay legal fees of $1,500 associated with incorporation lul. 4 Purchase office supplies of $1,620 on account. ul. 7 Pay for advertising of $330 to a local newspaper for an upcoming mountain biking clinic to be held on July 15. Attendees will be charged $60 on the day of the clinic. Jul 3 Purchase 10 mountain bikes, paying $16,100 cash Jul. 15 On the day of the clinic, Great Adventures receives cash of $4.800 from se bikers. Tony conducts the mountain biking clinic ul. 22 Because of the success of the first mountain biking clinic, Tony holds another mountain biking clinic and the company receives $5,100. Jul. 24 Pay $920 to a local radio station for advertising to appear immediately. A kayaking clinic will be held on August 10, and attendees can pay $110 in advance or $160 on the day of the clinic. Jul. 10 Great Adventures receives cash of $7,700 in advance from 70 kayakers for the upcoming kayak clinic. Aug. 1 Great Adventures obtains $30,000 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 annual interest is due each year on July 31. A 4 The company purchases 14 kayaks, paying $18,200 cash Aug. 10 Twenty additional kayakers pay $3,200 (516e each), in addition to the $7,700 that was paid in advance on July 30, on the day of the clinic. Tany 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 $1,600 purchased on July 4 are paid in full Sep 1 To provide better storage of mountain bikes and kayaks when not in we, the company rents storage shed for one year, paying $), 120 (5260 per month in advance. Sep 21 Tony conducts a rock climbing clinic. The company receives 513,300 cash Oct. 17 Tony Conducts an orienteering clinic. Participants practice how to understand topographical map. read an altinter, compass, and orient through heavily wooded area. The company receives $19.000 cash Dec . 1 Tony decides to hold the company's first adventure pace on December 15. Four person team will race from checkpoint to checkpoint using a combination of mountain bikin kayakine orientering trail running and rocking skills. The first team in each category to complete all checkpoints in order wins the entry to for each team is $520. Dec. To help organite and promote the race, Tony Mire his colle romate, Victor Victor will be paid 5.30 in Salary for each team that competes in the race His Salary will be paid after the race Dee. The company pays $1,000 to purchase prait from a state park where the race will be held. The sout it recorded iscellaneous expense Dec. 8 The company pays $1,600 to purchase a pornit from a state park where the race will be held. The amount is recorded as a miscellaneous expense. Dec. 12 The company purchases racing supplies for $2,700 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. Dec. 15 The company receives $20,800 cash from a total of forty teams, and the race is held. Dec. 16 The company pays Victor's salary of $1,200. Dec. 31 The company pays a dividend of $4,100 ($2,ose to Tony and $2,050 to Suzie). Dec. 1 Using his personal money, Tony purchases a diamond ring for $3,600. Tony surprises Suzie by proposing that they get married. Surle accepts 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 $8.700. 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. Or the $1600 of office supplies purchased on July 4, $230 remains. e. Interest expense on the $30,000 loan obtained from the city council on August 1 should be recorded. for the $2,700 of racing supplies purchased on December 12. $230 remains. 9. Suzie calculates that the company owes $14,200 in income taxes, Great Adventures Problem AP3-1 Part 3 Part 3 of 8 3. Post transactions from July 1 through December 31 and adjusting entries on December 31 to T-accounts. Prepaid insurance 277 points Beg Bal Beg Bal ook At References End Bal 0 End Bal 0 Prepaid Rent Supplies (Office) Beg Bal Big Bal here to search Supplies (Racing) Equipment (Bikes) Beg Bal Beg Bal End Bal 0 End Bal 0 Equipment (Kayaks) Accumulated Depreciation Beg Bal Bog Bal End Bal 0 End Bal 0 Accounts Payable Deferred Revenue Beg Bal Beg Bal End Bal 0 End Bal 0 Interest Payable Income Tax Payable Beg Bal Bog Bal End Bal End Bal Notes Payable Common Stock Beg Bal Beg. Bal End. Bal 0 End Bal 0 Dividends Service Revenue (Clinic) Bog Bal Beg Bal End, Bal End Bal Service Revenue (Racing) Advertising Expense Beg Bal Beg Bal End Bal End Bal of 8 Legal Feat Expense Miscellaneous Exnente Beg Bal Beg Bal End, Bal 0 End Bal 0 DK Salaries Expense Depreciation Expense 3 Beg Bal Beg Bal nces End Bal 0 End Bal 0 Insurance Expense Rent Expense Bog. Bal Beg Bal End Bal End Bal 0 Supplies Expense (Office) Supplies Expense (Racing! Beg Bal Beg Bal Interest Expense Income Tax Expense Beg Bal Beg Bal End Bal 0 End. Bal 0 8. Prepare a post-closing trial balance as of December 31, 2021. 8 of 8 7 ats Credit eBook ASK eferences GREAT ADVENTURES, Inc. Post-closing Trial Balance December 31, 2021 Accounts Debit Cash Prepaid Insurance Prepaid Rent Supplies (Office) Supplies (Racing) Equipment (Bikes) Equipment (Kayaks) Accumulated Depreciation Accounts Payable Income Tax Payable Interest Payable Notes Payable Common Stock Retained Earnings Dividends Service Revenue (Clinic) ME Service Revenue (Racing) Advertising Expense Depreciation Expense Income Tax Expense Insurance Expense Interest Expense Legal Fees Expense Miscellaneous Expense Rent Expense Salries Expense Supplies Expense (Office) Supplies Expense (Racing) Totals $ 0 S 0 Pley to search Aug- Aug. Jul 1 Sell $13,080 of common stock to Suzie. Jul 1 Sell $13,000 of common stock to Tony. Jul. 1 Purchase a one-year insurance policy for $4,800 (5400 per month) to cover injuries to participants during outdoor clinics. Jul 2 Pay legal fees of $1,500 associated with incorporation. Jul 4 Purchase office supplies of $1,600 on account. Jul. 7 Pay for advertising of $330 to a local newspaper for an upcoming mountain biking clinic to be held on July 15. Attendees will be charged $6e on the day of the clinic. Jul. 8 Purchase 10 mountain bikes, paying $16,3ee cash. Jul. 15 On the day of the clinic, Great Adventures receives cash of $4,8ee from 80 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 $5,100. Jul. 24 Pay $92e to a local radio station for advertising to appear immediately. A kayaking clinic will be held on August 10, and attendees can pay $119 in advance or $160 on the day of the clinic. Jul. 30 Great Adventures receives cash of $7,700 in advance from 78 kayakers for the upcoming kayak clinic. 1 Great Adventures obtains a $30,000 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 thrpe years, and 6% annual interest is due each year on July 31. 4 The company purchases 14 kayaks, paying $18,200 cash. Aug. 10 Twenty additional kayakers pay $3,200 ($160 each), in addition to the $7,700 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 $1,600 purchased on July 4 are paid in full. Sep. 1 To provide better storage of mountain bikes and kayaks when not in use, the company rents a storage shed for one year, paying $3,120 ($260 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. 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 skills. The first tean in each category to complete all checkpoints in order wins. The entry fee for each team is $520. Dec 5 To help organize and promote the race, Tony hires his college roommate, Victor. Victor will be paid $30 in salary for each team that competes in the race. His salary will be paid after the race. Dec. 8 The company pays $1,600 to purchase a permit from a state park where the race will be held. The amount is recorded as miscellaneous expense. Dec. 12 The company purchases racing supplies for $2,700 on account due in 30 days. Supplies include trophies for the Dec