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CAN YOU PLEASE CHECK WHERE I AM MAKING A MISTAKE? I NEED IT ASAP PLEASE!! Required Information Great Adventures Problem AP3-1 [The following information applies
CAN YOU PLEASE CHECK WHERE I AM MAKING A MISTAKE?
I NEED IT ASAP PLEASE!!
Required Information Great Adventures Problem AP3-1 [The following information applies to the questions displayed below.] Tony and Suzie graduate from college in Mey 2021 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 rece 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, Grest Adventures Inc. The articles of incorporation state that the corporation will sell 24,000 shares of common stock for $1 each. Esch share of stock represents a unit of ownership. Tony and Suzie will act as co-presidents of the company. The following transactions occur from July 1 through December 31. Jul. 1 Sell $12,222 of common stock to Suzie. Jul 1 Sell $12,890 of common stock to Tony. Jul. 1 Purchase a one-year insurance policy for $5,380 (5490 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 $1,300 on account. Jul. 7 Pay for advertising of $250 to a local newspaper for an upcoming mountain biking clinic to be held on July 15. Attendees will be charged $58 on the day of the clinic. Jul 8 Purchase 18 mountain bikes, paying $11,22 cash. Jul. 15 on the day of the clinic, Great Adventures receives cash of $3,see from 70 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 $3,950. Jul. 24 Pay $689 to a local radio station for advertising to appear immediately. A kayaking clinic will be held on August 10, and attendees can pay $11e in advance or $168 on the day of the clinic. Jul. 38 Great Adventures receives cash of $5,500 in advance from 50 kayakers for the upcoming kayak clinic. Aug. 1 Great Adventures obtains a $43,000 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 each year on July 31. Aug 4 The company purchases 14 kayaks, paying $18,02e cash. Aug. 18 Twenty additional kayakers pay $3,200 ($168 cach), in addition to the $5,500 that was paid in advance on July 38, on the day of the clinic. Tony conducts the first kayak clinic. Aug. 17 Tony conducts a second kayak clinic, and the company receives $10,8ee cash. Aug. 24 Office supplies of $1,300 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 $4,320 ($360 per month) in advance. Sep. 21 Tony conducts a rock-climbing clinic. The company receives $13,400 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 $18,200 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 skills. The first tean in cach category to complete all checkpoints in order wins. The entry fee for each team is $690. Dec. 5 To help organize and promote the race, Tony hires his college roommate, Victor. Victor will be paid $40 in salary for each tean that competes in the race. His salary will be paid after the race. Dec. 8 The company pays $1,400 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 tears in each category, promotional shirts, snack foods and drinks for participants, and field markers to prepare the racecourse. Dec. 15 The company receives $27,620 cash from a total of forty teams, and the race is held. Dec. 16 The company pays Victor's salary of $1,600. Dec. 31 The company pays a dividend of $4,380 ($2,15e to Tony and $2,150 to Suzie). Dec. 31 Using his personal money, Tony purchases a diamond ring for $4,900. 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, 2021. e Depreciation of the mountain bikes purchased on July 8 and kayaks purchased on August 4 totals $7,300. 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 $1.800 of office supplies purchased on July 4, $250 remains. e. Interest expense on the $43,000 loan obtained from the city council on August 1 should be recorded. f. Of the $2,700 of racing supplies purchased on December 12, $190 remains. 9. Suzie calculates that the company owes $14,700 in income taxes. No Date General Journal Debit Credit 1 Jul 01, 2021 12.000 Cash Common Stock 12.000 2 Jul 01, 2021 12,000 Cash Common Stock 12,000 3 Jul 01, 2021 5,880 Prepaid Insurance Cash 5.880 4 Jul 02, 2021 1,500 Legal Fees Expense Cash 1,500 5 Jul 04, 2021 1,800 Supplies (Office) Accounts Payable 1,800 6 Jul 07, 2021 250 Advertising Expense Cash 250 7 Jul 08, 2021 11,000 Equipment (Bikes) Cash 11,000 8 8 Jul 3.500 Cash Service Revenue (Clinic) 3,500 9 Jul 22, 2021 3,950 Cash Service Revenue (Clinic) 3,950 > 9 Jul 22, 2021 3,950 Cash Service Revenue (Clinic) 3,950 -> 10 Jul 24, 2021 680 Advertising Expense Cash 680 -> 11 Jul 30, 2021 5,500 Cash Deferred Revenue 5,500 12 Aug 01, 2021 Cash 43,000 Notes Payable 43,000 -> 13 Aug 04, 2021 18,000 Equipment (Kayaks) Cash 18,000 -> 14 Aug 10, 2021 Deferred Revenue Cash Service Revenue (Clinic) 5,500 3,200 8,700 15 Aug 17, 2021 10.800 Cash Service Revenue (Clinic) 10,800 16 Aug 24, 2021 Accounts Payable 1.800 Cash 1,800 17 Sep 01, 2021 4,320 Prepaid Rent Cash 4,320 > 18 Sep 21, 2021 13,400 Cash Service Revenue (Clinic) 13,400 17 Sep 01, 2021 Prepaid Rent 4,320 Cash 4,320 18 Sep 21, 2021 13,400 Cash Service Revenue (Clinic) 13,400 19 Oct 17, 2021 18,200 Cash Service Revenue (Clinic) 18,200 20 Dec 01, 2021 No Journal Entry Required 21 Dec 05, 2021 No Journal Entry Required 22 1,400 Dec 08, 2021 Miscellaneous Expense Cash 1,400 23 Dec 12, 2021 2,700 Supplies (Racing) Accounts Payable 2,700 24 Dec 15, 2021 27,600 Cash Service Revenue (Racing) 27,600 25 Dec 16, 2021 Salaries Expense 1,600 Cash 1,600 26 Dec 31, 2021 4,300 Dividends Cash 4,300 27 Dec 31, 2021 No Journal Entry Required 2. Record adjusting entries as of December 31, 2021. (If no entry is required for a transaction/event, select "No journal entry required" In the first account field.) View transaction list View journal entry worksheet No Credit Date Dec 31, 2021 General Journal Depreciation Expense Accumulated Depreciation Debit 7,300 1 7,300 2 Dec 31, 2021 2,940 Insurance Expense Prepaid Insurance 2.940 3 Dec 31, 2021 1,440 Rent Expense Prepaid Rent 1,440 4 Dec 31, 2021 1,550 Supplies Expense (Office) Supplies (Office) 1,550 5 Dec 31, 2021 1,075 Interest Expense Interest Payable 1,075 6 Dec 31, 2021 2.510 Supplies Expense (Racing) Supplies (Racing) 2.510 7 Dec 31, 2021 14,700 Income Tax Expense Income Tax Payable 14,700 3. Post transactions from July 1 through December 31 and adjusting entries on December 31 to T-accounts. Cash Prepaid Insurance Beg. Bal Beg. Bal. Jul. 1 Jul. 1 5,880 2.940 Dec. 31 Jul. 1 Jul. 15 Jul. 22 Jul. 30 Aug. 1 Aug. 10 Aug. 17 Sep. 21 Oct. 17 12,000 12,000 3,500 3,950 5,500 43,000 3,200 10.800 13,400 18,200 27,600 5,880 Jul. 1 1,500 Jul. 2 250 Jul. 7 11,000 Jul. 8 680 Jul. 24 18,000 Aug. 4 1,800 (Aug. 24 4,320 Sep. 1 1,400 Dec. 8 1,600 Dec. 16 4,300 (Dec. 31 End. Bal. 2.940 Dec. 15 End. Bal. 102,4201 Prepaid Rent Supplies (Office) Beg. Bal. Sep. 1 Beg. Bal Jul. 4 4,320 1,440 (Dec. 31 1,800 1,550 (Dec. 31 End. Bal. 2.880 End. Bal. 250 Supplies (Racing) Equipment (Bikes) Beg. Bal Beg. Bal Dec. 12 2.700 2.510 Dec. 31 Jul. 8 11,000 End. Bal. 190 End. Bal. 11,000 Equipment (Kayaks) Accumulated Depreciation Beg. Bal Beg. Bal. Aug. 4 18,000 7,300 Dec. 31 End. Bal. 18,000 End. Bal. 7,300 Accounts Payable Deferred Revenue Beg. Bal. Aug. 24 Beg. Bal. Aug. 10 1,800 5,500 5,500 Jul. 30 1.800 Jul 4 2,700 (Dec. 12 2.700 End. Bal. End. Bal. 0 Interest Payable Income Tax Payable Beg Bal. Beg Bal 1,075 (Dec. 31 14.700 Dec. 31 End. Bal. 1,075 End. Bal 14,700 Notes Payable Common Stock Beg. Bal Beg. Bal. 43,000 Aug. 1 12,000 Jul. 1 12.000 Jul. 1 24,000 End. Bal. 43,000 End. Bal. Dividends Service Revenue (Clinic) Beg. Bal Beg. Bal. Dec. 31 4,300 End. Bal. 4,300 3,500 Jul. 15 3,950 Jul. 22 10,800 Aug. 17 13,400 Sep. 21 18,200 Oct. 17 End. Bal. 49,850 Service Revenue (Racing) Advertising Expense Beg. Bal. Dec. 12 2,700 27,600 (Dec. 15 Beg. Bal. Jul. 7 Jul. 24 250 680 End. Bal. 24,900 End. Bal. 930 Service Revenue (Racing) Advertising Expense Beg. Bal. Dec. 12 2.700 27,600 Dec. 15 Beg. Bal. Jul. 7 Jul. 24 250 680 End. Bal. 24,900 End. Bal. 930 Legal Fees Expense Miscellaneous Expense Beg. Bal Jul. 2 Beg. Bal. Dec. 8 1,500 1,400 End. Bal. 1,500 End. Bal. 1,400 Salaries Expense Depreciation Expense Beg. Bal. Dec. 16 Beg. Bal Dec. 31 1,600 7,300 End. Bal. 1,600 End. Bal. 7.300 Insurance Expense Rent Expense Beg. Bal. Dec. 31 Beg. Bal. Dec. 31 2.940 1,440 End. Bal. 2.940 End. Bal. 1,440 Supplies Expense (Office) Supplies Expense (Racing) Beg. Bal. Dec. 31 Beg. Bal Dec. 31 1,550 2,510 End. Bal. 1,550 End. Bal. 2.510 Interest Expense Income Tax Expense Beg. Bal. Beg. Bal. Dec. 31 1,075 Dec. 31 14,700 End. Bal. 1,075 End. Bal. 14,700 4. Prepare an adjusted trial balance as of December 31, 2021. Credit GREAT ADVENTURES, Inc. Adjusted Trial Balance December 31, 2021 Accounts Debit Cash S 102,420 Prepaid Insurance 2.940 Prepaid Rent 2.880 Supplies (Office) 250 Supplies (Racing) 190 Equipment (Bikes) 11,000 Equipment (Kayaks) 18,000 Accumulated Depreciation Accounts Payable Income Tax Payable Interest Payable Notes Payable Common Stock Dividends 4,300 Service Revenue (Clinic) Service Revenue (Racing) Advertising Expense 930 Depreciation Expense 7,300 Income Tax Expense 14,700 Insurance Expense 2.940 Interest Expense 1,075 Legal Fees Expense 1,500 Miscellaneous Expense 1,400 Rent Expense 1,440 Salries Expense 1,600 Supplies Expense (Office) 1,550 Supplies Expense (Racing) 2.510 Totals S 178,925 7,300 2.700 14,700 1,075 43,000 24,000 49,850 24,900 S 167,525Step by Step Solution
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