General Ledger Problem-Part 2 1 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 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 10 points 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 bell 23,000 shares of common stock for $1 each Each share of stock represents a unit of ownership. Tory and Suzie will act as co-presidents of the company. The following transactions occur from July 1 through December 31 Book Pront References Jul. 1 Sell $11,500 of common stock to Suzie. Jut 1 Sell $11,500 of common stock to Tony Jul. 1 Purchase a one-year insurance policy for $3,960 ($330 per month) to cover injuries to participants during outdoor clinica Jul 2 Pay legal fees of $1.200 associated with incorporation Jul 4 Purchase office supplies of $1,000 on account Jul 7 Pay for advertising of $400 to a local newspaper for an upcoming mountain biking clinic to be held on July 15. Attendees will be charged $40 on the day of the clinic Jul. 8 Purchase 10 mountain bikes, paying $14,600 cash, Jul. 15 On the day of the clinic, Great Adventures receives cash of $2,800 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 $3.200. Jul 24 Pay for advertising of $860 to a local radio station for o kayaking clinic to be held on August 10. Attendees con pay $130 in advance or $180 on the day of the clinic Jul 30 Great Adventures receiver cash of $9,100 in advance from 70 kayakers for the upcoming kayak clinic Aug 1 Great Adventures obtains a $41,000 low-interest loan for the company from the city council, which has recently posted an initiative encouraging business development related to outdoor activities. The loon is due in three years, and 6% annual interest is due each year on July 31 Aug 4 The company purchases 14 keyaki, paying $14.300 cash. Aug. 10 Twenty additional kayakers pay $3.600 ($180 eachi, in addition to the $9.100 thot was paid in advance on July 30, on the day of the clinic. Tony conducts the first kayak Clinic Aug. 17 Tony conducta a second kayak clinic, and the company receives $10,700 cash Aug 24 Office Supplies of $1.600 purchased on July 4 ore paid in full Sep 1 To provide better storage of mountain bikes and kayoks when not in use the company rents a storage shed, purchasing a one-year rental policy for $4200 ($350 per month Sep 21 Tony conducta o rock climbing clinic. The company receives $13,600 cash Oct 17 Tony conducts an orienteering clinic. Participants practice how to understand topographical moped an altimeter une compons and Otient through heavily wooded areas. The company recelves 518,600 coth Dec 1 Tony decides to hold the company's first adventure race on December 15. Four person teams will race from checkpoint to check point using a combination of mountain biking, kayoking orienteering, trail running and rock climbing skills 1 1 10 points 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 $18.600 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 team in each category to complete all checkpoints in order wins. The entry fee for each team is $580 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 $1200 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 $2.900 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 $27.200 cash from a total of forty tents, and the race is held. Dec 16 The company pays Victor's lary of $2,000 Dec 31 The company pays a dividend of $3.000 ($1.000 10 Tony and $1800 to Sutie) Dec 31 Using his personal money, Tony purchases a diamond ring for 33.000. Tony surprises Suze by proposing that they get married. unle accepts and they get married! Pri The following information relate to year and adjusting entries as of December 31, 2018 Depreciation of the mountain bikes purchased on July and kayaks purchased on August 4 101 $5700 b. Six months worth of insurance has expired Four months worth of the expired d. Of the 1500 force supplies purchased on July 4, 5210erain Interest expense of the $41000 on toined from the city council on August should be recorded of the $2.000 of racing supple purchased on December 12, 5120 remona Susie calculates that the company owe $13.400 Income taxes G Itamat Sant of action is owned Juhatab these are 12 www ener Lader and a Balanta hut of trans the acces 2. cord the editing is in the deal sutarts) view the late of December 312018 Prostatement for the decem 3018, the income tanta SPA desced this of 31.2018 Balance Shtab A Record the the Getouch 10 points eBook mountain biking, kayaking, orienteering, trail running, and rock-climbing skills, The first team in each category to complete all checkpoints in order wins. The entry fee for each team is $580. 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 $1.200 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 $2,900 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 $23,200 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 $3,600 ($1,800 to Tony and $1,800 to Suziej. Dec. 31 Using his personal money. Tony purchases a diamond ring for $3,800. Tony surprises Suzie by proposing that they get married. Suzie accepts and they get married Print Beferences The following information relates to year-end adjusting entries as of December 31, 2018 o. Depreciation of the mountain bike purchased on July 8 and kayaks purchased on August 4 totals $5780 b. Six months' worth of insurance has expired. c. Four months worth of rent has expired. d. Of the $1.600 of office supplies purchased on July 4, $210 remaina. e interest expense on the 541,000 loan obtained from the city council on August 1 should be recorded. 1 Of the $2.900 of racing supplies purchased on December 12. $120 remains 9.Suzie calculates that the company owes $13.400 in income taxel General Sumat General Ledger That Balance Encome Statement SE Balance Sheet Leach of the transaction Med aloin the General oral these are shown as uns 137) Review the General Ledger and the balance as to the effect of the transactions on the balance 2. Record adjusting entries in the General Journal tals (these are those 30-34). 3. Review the duce la Balanta of December 31, 2011 Prepare the statement for the ridended Dec 31, 2016. The income Statementale 5. Preparadas balance sheets of December 31, 2016 in the Sheila 6. Record the Cowing an in the General Journal at these are shown to 35-3 ral tournal > Obtained from the city council on August 1 should be recorded. 1. Of the $2,900 of racing supplies purchased on December 12. $120 remains g. Suzie calculates that the company owes $13.400 in income taxes. Print References Requirement General General Ledger That Balance Income Statement Statement of SE Balance Sheet Prepare the journal entries for transactions. If no entry is required for a transaction/event, select "No journal entry required in the first account field. w transactionat Journal entry worksheet 2 3 4 5 3 7 37 > SI 500 of constuck lu Su. otta beton Genealous Dalt Credit Det 2013 Fy Chy M Type here to search The following information relates to year end adjusting entries as of December 31, 2018 a. Depreciation of the mountain bikes purchased on July B and kayaks purchased on August 4 totals $5780 b. Six months worth of insurance has expired. Four months' worth of rent has expired d. Of the $1.600 of office supplies purchased on July 4. $210 remains. e. Interest expense on the $41,000 loan obtained from the city council on August should be recorded f of the $2.900 of racing supplies purchased on December 12. $120 remains. g. Suzie calculates that the company owes $13.400 in income taxes. Requirement General Journal General Ledger Trial Balance Income Statement Statement of SE Balance Sheet Each ouma entry is posted automatically to the general ledger Unadjusted General Luoger Account Data not available until you have