General Journal, Income Statement, and Balance Sheet Help

Tony and Suzie graduate from college in May 2018 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 rst adventure races. These races will involve fourperson 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, 2018, Tony and Suzie organize their new company as a corporation, Great Adventures Inc. The articles of incorporation state that the corporation will sell 25,000 shares of common stock for $1 each. Each 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 $12,500 of common stock to Suzie. Jul. 1 Sell $12,500 of common stock to Tony. Jul. 1 Purchase a one-year insurance policy for $5,160 ($430 per month) to cover injuries to participants during outdoor clinics. Jul. 2 Pay legal fees of $1 ,200 associated with incorporation. Jul. 4 Purchase ofce supplies of $1,000 on account. Jul. 7 Pay for advertising of $370 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. 8 Purchase 10 mountain bikes, paying $11,000 cash. Jul. 15 On the day of the clinic, Great Adventures receives cash of $3,000 from 50 bikers. Tony conducts the mountain biking clinic. Jul. 22 Because of the success of the rst mountain biking clinic, Tony holds another mountain biking clinic and the company receives $3,400. Jul. 24 Pay for advertising of $960 to a local radio station for a kayaking clinic to be held on August 10. Attendees can pay $140 in advance or $190 on the day of the clinic. Jul. 30 Great Adventures receives cash of $9,800 in advance from 70 kayakers for the upcoming kayak clinic. Aug. 1 Great Adventures obtains a $42,000 low-interest loan for the company from the city council. which has recently passed an initiative encouraging business development related to outdoor activies. 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 $20,900 cash. Aug. 10 Twenty additional kayakers pay $3,800 ($190 each), in addition to the $9,800 that was paid in advance on July 30, on the day of the clinic. Tony conducts the rst kayak clinic. Aug. 17 Tony conducts a second kayak clinic, and the company receives $11,100 cash. Aug. 24 Ofce supplies of $1 ,000 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, purchasing a oneyear rental policy for $4,680 ($390 per month). Sep. 21 Tony conducts a rock-climbing clinic. The company receives $13,500 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 $19,000 cash. Dec. 1 Tony decides to hold the company's rst 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 rst team in each category to complete all checkpoints in order wins. The entry fee for each team is $600. Dec. 1 Tony decides to hold the company's rst 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 rockclimbing skills. The rst team in each category to complete all checkpoints in order wins. The entry fee for each team is $600. Dec. 5 To help organize and promote the race, Tony hires his college roommate, Victor. Victor will be paid $50 in salary for each team that competes in the race. His salary will be paid after the race. Dec. 8 The company pays $1,700 to purchase a permit 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 $2,400 on account due in 30 days. Supplies include trophies for the top-nishing teams in each category, promotional shirts, snack foods and drinks for participants, and eld markers to prepare the racecourse. Dec. 15 The company receives $24,000 cash from a total of forty teams, and the race is held. Dec. 16 The company pays Victor's salary of $2,000. Dec. 31 The company pays a dividend of $3,500 ($1,750 to Tony and $1,750 to Suzie). Dec. 31 Using his personal money, Tony purchases a diamond ring for $3,500. 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, 2018. a. Depreciation of the mountain bikes purchased on July 8 and kayaks purchased on August 4 totals $6,380. b. Six months' worth of insurance has expired. c. Four months' worth of rent has expired. d. Of the $1 ,000 of ofce supplies purchased on July 4, $370 remains. e. Interest expense on the $42,000 loan obtained from the city council on August 1 should be recorded. f. Of the $2,400 of racing supplies purchased on December 12, $140 remains. g. Suzie calculates that the company owes $14,100 in income taxes. Statement of SE Income Statement Balance Sheet Requirement Trial Balance General General Journal Ledger Dec. 5 To help organize and promote the race, Tony hires his college roommate, Wotor. Victor will be paid $50 in salary for each team that competes in the race. His salary will be paid after the race. Dec. 8 The company pays $1,700 to purchase a permit 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 $2,400 on account due in 30 days. Supplies include trophies for the top-nishing teams in each category, promotional shirts, snack foods and drinks for participants, and eld markers to prepare the racecourse. Dec. 15 The company receives $24,000 cash from a total of forty teams, and the race is held. Dec. 16 The company pays \\ctor's salary of $2,000. Dec. 31 The company pays a dividend of $3,500 ($1,750 to Tony and $1,750 to Suzie). Dec. 31 Using his personal money, Tony purchases a diamond ring for $3,500. 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, 2018. a. Depreciation of the mountain bikes purchased on July 8 and kayaks purchased on August 4 totals $6,380. b. Six months' worth of insurance has expired. 0. Four months' worth of rent has expired. d. Of the $1,000 of ofce supplies purchased on July 4, $370 remains. e. Interest expense on the $42,000 loan obtained from the city council on August 1 should be recorded. f. Of the $2,400 of racing supplies purchased on December 12, $140 remains. g. Suzie calculates that the company owes $14,100 in income taxes. Statement of SE General General Journal Ledger Balance Sheet Trial Balance Requirement Income Statement 1.Record each of the transactions listed above in the 'General Journal' tab (these are shown as items 1 - 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 28-34). 3.Review the adjusted 'Trial Balance' as of December 31, 2018. 4.Prepare an income statement for the period ended December 31, 2018, in the IIncome Statement' tab. 5.Prepare a classied balance sheet as of December 31, 2018 in the 'Balance Sheet' tab. 6.Record the closing entries in the 'General Journal' tab (these are shown as items 35-37). 'I'r- - l