Entry options:
- No Journal Entry Required
- Accounts Payable
- Accounts Receivable
- Accumulated Depreciation
- Advertising Expense
- Buildings
- Cash
- Common Stock
- Deferred Revenue
- Delivery Expense
- Depreciation Expense
- Dividends
- Equipment (Bikes)
- Equipment (Kayaks)
- Income Tax Expense
- Insurance Expense
- Interest Expense
- Interest Payable
- Interest Receivable
- Interest Revenue
- Inventory
- Land
- Legal Fees Expense
- Miscellaneous Expense
- Notes Payable
- Notes Receivable
- Prepaid Advertising
- Prepaid Insurance
- Prepaid Rent
- Rent Expense
- Repairs and Maintenance Expense
- Retained Earnings
- Salaries Expense
- Salaries Payable
- Sales Revenue
- Service Fee Expense
- Service Revenue (Clinic)
- Service Revenue (Racing)
- Supplies (Office)
- Supplies (Racing)
- Supplies Expense
- Utilities Expense
- Utilities Payable
Jul. Great Adventures Problem AP3-1 The following information applies to the questions displayed below.) 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 kayaking. Upon developing a customer base, they'lhold 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 $1 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 1 Sell $10,000 of common stock to Suziu. Jul. 1 Sell $10,000 of common stock to Tony. 1 Purchase one-year insurance policy for $5,040 (5420 per month to correr injuries to participants during outdoor clinica. Jul. 2 Pay legal fee of $1,100 asociated with incorporation Jul. 4 Purchase office supplier of $1,700 on account. Jul. 1 Pay for advertising of $320 to local newspaper for an upcoming mountain biking clinie to be held on July 15. Attendees vill be charged $40 ce the day of the clinic. Purchase 10 mountain bikes, paying $19,400 cash. Jul. 15 Ce the day of the clinic, Great Adventures ruceive cash of $2,000 from 50 bikers. Tony conducts the mountain biking clinic. Jul. 22 Because of the success of the first sountain biking clinic, Tony holds another mountain biking clinic and the company recerea $2,390. 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 5120 in dirance or 5170 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. Aug. 1 Great Adventures obtaina 542,900 low-interest lose to the coupany from the city council, which has recently passed an initiative encouraging business development related to outdoor activities. The loan in de in three years, and 67 am interest sa due each year on July 31. . 4 The company purchases 14 kayaka, paying 518,200 cash. Aug. 10 Eventy additional kayaku pay $3,400 (5170 each), in addition to the 54,000 that was paid in advance - July 3, on the day of the clinic. Tony conducta the first kayak clinic. Mag. 17 Sony conducta record kayak clinis, and the company receive: $12,00 cash. Aug. 24 Ottice supplies of $1,700 purchased on July 4 are paid in full. Sap. 1 so provide better storage of mountain bikes and kayaka when not in use, the company sents a storage bed for year, paying $3,300 ($200 per month) - advance. Sep. 21 Sony conducta rock-climbing clinic. The company receives $14,500 cash. Oct. 17 candecta an orienteering clinic. Participants practice how to understand topographical rap, Tead an altimatus, we compass, and orient through heavily wooded area. The company receive 518,000 cash 1 Sony decides to hold the compesy's first adventure race on December 15. Four-person tan vill race " from checkpoint to checkpoint using combination of mountain biking, kayaking, orientering, trail running, and rock-climbing skills. The first te is each category to complete all checkpointa in order with the entry fee for each tea sa $690. Dec. So help organize and promote the race, Tony hirex his college Comte, Victor. Victor will be paid 540 in salary for each team that competes in the race. llix salary will be paid after the race. Dec. The company pays $1,000 to purchase permit from a state park where the race will be held. The amount is recorded sellaneous expande. Dec. 12 The company purchases racing supplies for $2,300 account due in 30 daya. Supplies include trophies for the top-finishing teams in each category, promotional shirta, snack food and drinks for participants, and tied saker to prepare the secourue. Dec. 15 The company receives $27,600 cash tro total of torty teams, and the race is held. Dec. 18 The compasy pays Victor's malery of $2,400. Dec. 3. The company pays dividend of $4,300 (52,150 to Tony and $2,150 to Suzce). Dec. 31 Daing his personal money, Tony purchases diamond ring for $3,600. Tony surprises Suzie by preparing that they get married. Suzie 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. 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, $310 remains c. 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. Suzie calculates that the company owes $13,400 in Income taxes. Great Adventures Problem AP3-1 Part 1 Required: 1. Record transactions from July 1 through December 31. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 5 6 7 8 27 Sell $18,000 of common stock to Suzie. Record the appropriate journal entry. Note: Enter debits before credits. Date General Journal Debit Credit Jul 01, 2021 Record entry Clear entry View general journal
