GL2-16 Complete the full accounting cycle On July 1, 2018, Tony and Suzie organize their new company as a corporation, Great Adventures Inc. The following transactions occur from August 1 through December 31. Also, the balances are provided for the month ended July 31. Aug. 1 Great Adventures obtains a $30,000 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 $28,000 cash, Aug. 10 Twenty additional kayakers pay $3,000 ($150 each), in addition to the $4,000 that was paid in advance on July 30, on the day of the clinic, Tony conducts the first kayak clinic Aug. 27 Tony conducts a second kayak clinic, and the company receives $10,500 cash. Aug. 24 Office supplies of $1,800 purchased ch 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 one-year rental policy for $2,400 ($200 per month) Sep 21 Tony conducts a rock-climbing clinic. The company receives $13,200 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 $17.900 cash. Dec. 1 Tony decides to hold the company's first adventure race on December 15. Four- persor 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 $500. 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 $2,800 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 racecourse. Dec. 15 The company receives $20.000 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 $4.000 ($2,000 to Tony and $2,000 to Suzie). Dec. 31 Using his personal money, Tony purchases a diamond ring for $4,500. Tony surprises Suzie by proposing that they get married. Suzie accepts and they get married! The following information relates to year and adjusting entries as of December 31, 2018 Depreciation of the mountain bikes purchased on July 8 and kayaks purchased on August 4 totais 58.000 b. Six months' worth of insurance has expired c. Four months worth of rent has expired. d. Of the $1800 of office supplies purchased on July 4, $300 remains o. Interest expense on the $30,000 loan obtained from the city council on August 1 should be recorded for the $2.500 of racing supplies purchased on December 12, $200 remains - Accounting Cycle 6 promotional shirts, snack tooos ana arinks for participants, ana tleia markers to prepare the racecourse, Dec. 15 The company receives $20,000 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 $4.000 ($2,000 to Tony and $2,000 to Suzie) Dec. 31 Using his personal money. Tony purchases a diamond ring for $4,500. 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 $8,000. b. Six months' worth of insurance has expired. c. Four months' worth of rent has expired. d. Of the $1,800 of office supplies purchased on July 4, $300 remains. e. Interest expense on the $30,000 loan obtained from the city council on August 1 should be recorded. f. or the $2,800 of racing supplies purchased on December 12, $200 remains. g. Suzie calculates that the company owes $14,000 in income taxes. Book Print eferences Assume the following ending balances for the month of July. Balance Cash $ 9,000 Prepaid insurance 4,800 Supplies (Office) 1,800 Equipment (Bikes) 12,000 Accounts payable 1.800 Deferred revenue 4,000 Cdmmon stock 20,000 Service revenue (Clinic) 4,300 Advertising expense 1000 Legal fees expenso 1,500 "Annual premium paid July 1 Requirement General Journal General Ledger Trial Balance Income Statement Changes in SE Balance Sheet General Journal tab - For each transaction, prepare the required journal entry on the General Journal tab. List debits before credits General Ledger tab - Each journal entry is posted automatically to the general ledger Trial Balance tab - The ending balance values from the General Ledger tab flows through to the Trial Balance tab Income Statement tab - Use the drop-down to select the accounts properly included on the income statement Statement of Changes in Stockholders' Equity tab - Prepare the statement of changes in stockholders' equity for the year ended December 31, 2018 Balance Sheet tab - Prepare a classified Balance Sheet at December 31, 2018 General Journal > Project - Accounting Cycle 6 Silved 1 Deferred revenue Common stock Service revenue (Clinic) Advertising expense Legal fees expense 4,000 20,000 4,300 1,000 1,500 "Annual premium paid July 1 100 points Requirement General Journal General Ledger Trial Balance Income Statement Changes in SE Balance Sheet eBook Prepare the journal entries for transactions. If no entry is required for a transaction/event, select "No journal entry required in the account field View transaction list Print Journal entry worksheet References 5 7 8 24 Great Adventures obtains a $30,000 low-interest loan for the company, Note: Enter debits before credits Debit Credit Date General Journal Aug 01. 2018 Cash Notes payable 30.000 30.000 Record entry Clear entry View general Journal ounting Cycle 6 Seved General Ledgor Account Cash Accounts recolvable Debit Credit No. Date Debit Credit Balance 0 30,000 23 Dec 31, 2018 37 150 37,150 28.000 3,000 10,500 No. Date Jul 31, 2018 1 Aug 01, 2018 2 Aug 04, 2018 31 Aug 10, 2018 5 Aug 24, 2018 6 Sep 01, 2018 7 Sep 21, 2018 8 Oct 17, 2018 9 Dec 05, 2018 10 Dec 08, 2018 12) Dec 15, 2018 Balance 9,000 39,000 11,000 14,000 24,500 22,700 20,300 33,500 51,400 50.200 70,200 1,800 2,400 13,200 17.900 1,200 20,000 es Supplies (Office) Debit Credit Supplies (Racing Debit Credit No. Date No. Balance Date Jul 31, 2018 Balance 1,800 0 2,800 11 Dec 12, 2018 2.800 Prepaid rent Debit Propaldinsurance Debit Credit No Date Credit No. Balance 4,800 Date Jul 31, 2018 Balance 0 2,400 2 7 Sep 21, 2018 2.400 Equipment Bikes) Debit Credit Equipment (Kayaks) Debit Credit No. Date No. Date Jul 31, 2018 Balance 12.000 Balance 0 28.000 2 Aug 04, 2018 28,000 Accounts payable Debit Credit Deferred revenue Debit Credit Balance Balance 4.000 0 1.800 No Date Jul 31, 2018 4 Aug 17, 2016 No. Date Jul 31, 2018 al Sep 01, 2018 11 Dec 12, 2018 4,000 1,500 2.800 2,800 Common stock Hotes payable No. Debit Credit Credit Balance 20.000 No Date Debit Balance 0 30,000 Date Jul 31, 2018 30.000 Aug 01, 2018 1 Common stock Service revenue Clinic Advertising expense Legal fees expense 20.000 4,300 1000 1.500 Annual premium paid July 1 100 Requirement General Journal General Ledger Trial Balance Income Statement Changes in SE Balance Sheet Choose the appropriate accounts to be reported on the income statement. Select the adjusted from the dropdown, which wil then populate the balances in those accounts from the trial balance. - Post-closing GREAT ADVENTURES, Inc. Income Statement December 31, 2018 Revenues Service revende Clinic) Ps 52.900 Service revenue (Racing) 20,000 Reference Total revenues Expenses $ 72.900 Texpense 5 72.900 Project - Accounting Cyde Los pornoa Susie calculates that the company owes $14,000 in income taxes. 1 100 port Assume the following ending balances for the month of July. Balance Cash $ 9,000 Prepaid insurance 4,800 Supplies (Office) 1,800 Equipment (Bikes) 12,000 Accounts payable 1.800 Deferred revenue 4,000 Common stock 20,000 Service revenue Clinic 4,300 Advertising expense 1,000 Legal fees expense 1.500 "Annual premium paid July 1 Worces Requirement General Journal General Ledger Tral Balance Income Statement Changes in Balance Sheet Using the dropdown buttons, select the item that accurately describes the values that either increase or decrease the balance indicated. Post-closing GREAT ADVENTURES, Inc. Statement of stockholders' Equity For the year ended December 31, 2018 Common stock Retained Kamings Total Stockholders Equity 20.000 analyt Ad unor of common pudd income for 2018 Linds to Deonber 31 72.000 20.000 72.000 5 20,000 $ 72,000 $ 99.000 Income Statement Balance sheet > Seved 1 Supplies (Office) Equipment (Bikes Accounts payable Deferred revenue Common stock Service revenue (Clinic) Advertising expense Legal fees expense 1,800 12,000 1,800 4,000 20,000 4,300 1,000 1.500 100 "Annual premium paid July 1 or Requirement General Journal General Ledger Trial Balance Income Statement Changes in Se Balance Sheet Print The balance sheet is the accounting equation: Assets Liabilities + Equity. Each asset and liability account is reported separately on the balance sheet. Post-closing front GREAT ADVENTURES, Inc Balance Sheet December 31, 2018 Liabilities Current abilities: 70,200 4.800 2.400 Nobos payable 1.800 2.800 Total current tips Assets Current assets Cash Prepaid insurance Prepaid ront Supplies (Office) Supplies Racing) 5 30,000 30.000 Stockholders' Equity 82,000 Common stock Retained camino Total current sets Long terms 20.000 DE 105.050 Total stockholders equity Totalcabilities and stockholders equity 126,050 156,060 Total assets $ 82,000 s