general journal

Thank you

Tony and Suzie graduate from college in May 2024 and begin developing their new business. They begin by offering clinies 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 race from one checkpoint to the next using a combinution 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, 2024, Tony and Suzie organize their new company as a corporation, Great Adventures Incorporated 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 Suric will act as co-presidents of the company. The following business activities occur during July for Great Adventures. recently passed an initiative encouraging business development related to outdoor activities. The loan is die in three years, sid 64 inncal interest is due August 4 August 10 August 17 August 24 Soptomber 1 Soptomber 1 kayaks when not in use, the company rents a storage karovide better storage of mountain bikes and shed for one year, paying $3,960 ( $330 pez month) in advance. September 21 Tony and Suzie conduct a rock-climbing clinic. The company receives $14,400 cash. Ootober 17 Tony and Suzie conduct an orienteoring clinic. Participants practice how to understand a topographicai map, read an altimeter, use a:compass, and ortent through heavily wooded areas. The company receives $18,600 cash. December 1 Tony and Suzle decide 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, kayakinq, oxienteering, trail cunning, and zock-climbing skills. The first team in each category to complete all checkpoints in order wins. The entry fee for each team is $540. December 5 To hielp organtze- nnd promote the race, Tony hires his coliege roomate, Victor. Vlctor will be pald $60 in salary for each tean that competes in the race. His salary will be paid after the race. December 8 The company pays $1,700 to purchase a permit from: state park where the race will be held. The amount is recorded as a niscellaneous expense. December 12 The company purchases racling supplies for $2,800 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 racocourse : December 15 The company receives $21,600 cash from a total of forty teans, and the race is held. December 16 The colpany pays Victor's salary of $2,400. December 31 The company pays a dividend of $3,600 ( $1,800 to Tony and $1,800 to Suzie). December 31 tosing his personal money, Tony purchases a diamond zing for $4,200. Tony surprises Suzie by proposing that they get married. Suzie accepts and they get married: The following information relites to year-end adjusting entries as of December 31, 2024. a. Depreciation of the mourtain bikes purchased on July 8 and kayaks purchased on August 4 bocals 58,000 . b. Six months of the one-year insurance policy purchased on July 1 has expired. c. Four months of the cone-year rental agreement purchnsed on September 1 has expired. d. Of the $1,100 of office supplies purchased on July 4, $290 remains. c. Interest expense en the 545,000 loan obtained from the city council on August 1 should be recorded. f. Of the $2.00 of racing supplies purchased on December 12,$230 remains. \& Sarie caleulties that the compeny owes $13,500 in income taxes