GL2-16 Complete the full accounting cycle 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'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. 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 29,000 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 $14, 500 of common stock to Suzie. Jul . 1 Sell $14, 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 clinics. Jul . Pay legal fees of $1, 900 associated with incorporation. Jul . Purchase office supplies of $1, 500 on account. Jul . 7 Pay for advertising of $260 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 $17, 500 cash. Jul. 15 On the day of the clinic, Great Adventures receives cash of $4, 200 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 $4,550. Jul. 24 Pay $800 to a local radio station for advertising to appear immediately. A kayaking clinic will be held on August 10, and attendees can pay $140 in advance or $190 on the day of the clinic. Jul. 30 Great Adventures receives cash of $8, 400 in advance from 60 kayakers for the upcoming kayak clinic. Aug . 1 Great Adventures obtains a $31,000 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 threeAug. Aug. Aug. Aug. Sep. Sep. 0ct. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. 17 24 21 17 12 15 IE 31 31 years, and 0% annual interest is due each year on July 31. The company purchases 14 kayaks, paying $25,200 cash. Twenty additional kayakers pay $3,000 {$190 each], in addition to the $3,400 that was paid in advance on July 30, on the day of the clinic. Tony conducts the first kayak clinic. Tony conducts a second kayak clinic, and the company receives $11,200 cash. 0ffice supplies of $1,500 purchased on July 4 are paid in full. To provide better storage of mountain bikes and kayaks when not in use, the company rents a storage shed for one year, paying $3,220 [$310 per month] in advance. Tony conducts a rockclimbing clinic. The company receives $14,900 cash. Tony conducts an crienteering clinic. Participants practice how to understand a topographical map, read an altimeter, use a compass, and orient through heavily wooded areas. The company receives $10,500 cash. Tony decides to hold the company's first adventure race on December 15. Fourperson teams will race from checkpoint to checkpoint using a combination of mountain biking, kayaking, crienteering, 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 $510. To help organize and promote the race, Tony hires his college roommate, victor. victor will be paid $00 in salary for each team that competes in the race. His salary will be paid after the race. 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. The company purchases racing supplies for $2,200 on account due in 30 days. Supplies include trophies for the topfinishing teams in each category, promotional shirts, snack foods and drinks for participants, and field markers to prepare the racecourse. The company receives $24,400 cash from a total of forty teams, and the race is held. The company pays Victor's salary of $2,400. The company pays a dividend of $4,000 {$2,000 to Tony and $2,000 to Suzie}. Using his personal money, Tony purchases a diamond ring for $4,300. Tony surprises Suzie by proposing that they get married. Susie 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 $8,540. b. Six months' of the one-year insurance policy purchased on July 1 has expired. c. Four months of the one-year rental agreement purchased on September 1 has expired. d. Of the $1,500 of office supplies purchased on July 4, $250 remains. e. Interest expense on the $31,000 loan obtained from the city council on August 1 should be recorded f. Of the $2,200 of racing supplies purchased on December 12, $160 remains. g. Suzie calculates that the company owes $14,300 in income taxes. 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, 2021. 4. Prepare an income statement for the period ended December 31, 2021, in the 'Income Statement' tab. 5. Prepare a statement of stockholder's equity for the period ended December 31, 2021, in the 'Statement of Stockholder's Equity' tab. 6. Prepare a classified balance sheet as of December 31, 2021 in the "Balance Sheet" tab. 7. Record the closing entries in the 'General Journal' tab (these are shown as items 35-37). Options for General Journal Entries (use these for assignment) 000: No Journal Entry Required 100: Cash 120: Accounts Receivable 121: Allowance For uncollectable accounts 125: Notes Receivable 130: Interest Receivable 135: Inventory 140: Supplies (office)141: Supplies (Racing) 145: Prepaid Rent 150: prepaid insurance 160: land 163: Buildings 164: Equipment (Bikes) 165: Equipment (Kayaks) 166: Accumulated Depreciation 201: Accounts Payable 205: Salaries Payable 210: utilities payable 215: Interest Payable 220: Income Taxes Payable 225: Dividends Payable 230: Deferred Revenue 235: Notes Payable 310: Common Stock 315: Treasury Stock 320: Additional Paid In Capital 330: Retained earnings 340: dividends 400: Service Revenue (clinic) 401: Service revenue (racing) 410: Interest Revenue 500: Cost of Goods Sold 505: Advertising Expense 510: Depreciation Expense 515: Supplies Expense (Office) 516: Supplies Expense (Racing)520: Salaries Expense 530: Utilities Expense 535: Bad Debt Expense 540: Interest Expense 545: Rent Expense 548: Property Tax expense 550: Income Tax Expense 560: Legal Fees Expense 637: Insurance Expense 677: Miscellaneous Expense 684: Repairs and Maintenance Expense.Requirement General Go neral Trial Balance Incoma statement of|Balance Sheet Journal La-dgar Matoman SE Prepare the journal entries for transactions. (If ma entry is required for a transactionevent, select "No journal entry required" in the first account field.j View hamaction list Journal entry worksheet 2 3 5 J 37 Bell $14,500 of common stock to Suzie. Note: Enter debits before credits. Date General Journal Credit Ju 01. 2021 Recond entry Clear emay View paneral journal Requirement Gunare Income Lodger Trial Balance Blutammant of Journal Statamant Balance Sheet Prepare the journal entries for transactions. [If mo entry is required for s transaction/event, select "No journal entry required" in the first account field.] View transaction list Journal entry worksheet 2 3 5 7 B ...-- 37 sell $14,500 of common stock to Tony. Note: Enter debits before credits. Data General Journal Debit Credit Ju1 01. 2021 Record entry Clear Friday View general journalRequirement General General Income Statement of Journal Ledger Trial Belance Statement Balance Sheet Prepare the Joumal entries for transactions. (If no entry is required for a transaction/event, select "Ne journal entry required" in the first account field.} Journal entry worksheet 1 2 3 5 6 37 Purchase a ane-year insurance policy for $3,960 ($330 per month) to cover injuries to participants during outdoor clinics. Note: Enter debits before credits. Date General Journal Debit Credlit Jul 01, 2021 Record entry Clear entry Winw general journal Requirement Sangral Gonera Trial Balance Incoma Statement of Journal Ledger Statement SE Balance Sheet Prepare the journal entries for transactions. (Of no entry is required for a transaction,event, select "No journal entry required" in the first account field.! Journal entry worksheet The company pays a dividend of $4,000 ($2,000 to Tony and $2,000 to Suzie). Note: Enter debits before credits. Date General Journal Debit Credit Dao 31, 2021 Record entry Clear entry View general journalRequirement General Statement of Journal Trial Balance Incoms Ledgar Btutument Balance Sheet BE 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.] View transaction list Journal entry worksheet - 23 24 25 27 28 - ...- 37 Using his personal money, Tony purchases a diamond ring for $4,300. Tony surprises Suzie by proposing that they get married. Suzie accepts and they get married. Nobe: Enter debits before credits General Journal Debit Credit Dec 31. 2021 Record unay Clear entry Vice general journal Requirement General Genes Trial Balance Income Statement of Journal Ledger Statement SE Prepare the Joumal entries for transactions. (If no entry is required for a transaction/event, select "No journal aintry required" in the first account field.) new transaction list Journal entry worksheet NEEDS 23 24 25 26 23 37 Prepare the adjusting entry for depreciation. Depreciation of the mountain bikes purchased on July 8 and kayaks purchased on August 4 totals $8,540. Note: Encar dobies before credits. Dale General Journal Debit Credit Dep 31. 2021 Focord patry Char only Wow general journalRequirement General General Journal Ledger Trial Balance Income Statement of Statement BE Balance Sheet Prepare the journal entries for transactions. (If no entry is required for a transaction/event, select 'To Journal entry required" in the first account field.} View bransachin list Journal entry worksheet -950 24 25 26 27 28 37 Prepare the adjusting entry for insurance. Sb: months' of the one-year Insurance policy purchased on July 1 has expired. Notes Enter debits before credits. Date General Journal Debit Credit Dae 31, 2021 Record entry Clear entry View general journal irement Banural Trial Balance Statement of Journal Ledger Stateman Balance Sheet pare the journal entries for transactions. (If no entry is required for a transaction event, select "he journal entry required" in the first bunt field.] ww branchon list Journal entry worksheet . . ... 25 27 28 29 30 37 Prepare the adjusting entry for rent. Four months of the one-year rental agreement purchased on September i has expired. Note: Enter debits before credita. Date General Joumal Credit Deo 31. 2021 Record entry Clear entry View general journalRequirement Songral Ledger Trial Balance Incoma Blatamant of Journal Statement Balance Sheet Prepare the journal entries for transactions. (If no entry is required for a transaction/event, select "Na journal entry required" in the First account field.} View Barbiction list Journal entry worksheet Requirement General Income Doumul Ledger Inel Balance SE Balance Sheet The ending balance values from the General Ledger tob flows through to the The Balance be Um Adjusted GREAT ADVENTURES. Inc. Trial Balance December 11. 2021 Alooount Tide Tom General Ledger Income Statement > Requirement General General Income Statement of Ledger Trial Balance Statement SE Balance Sheet Joumal Choose the appropriate accounts to be reported on the income statement. Select the 'adjusted' from the dropdown, which will then populate the balances in those accounts from the trial balance. Adjusted GREAT ADVENTURES, Inc. Income Statement December 31. 2021 REvenues: Total Revenues Expenses Total Expense * Trial Balance Statement of SE >Requirement General General Income Journal Ledper Trial Balance Statement SC Statement of | Balance Sheet Using the dropdown buttons, select the item that accurately describes the values that either increase or decrease the balance indicated. Adjusted GREAT ADVENTURES, Inc. Statement of Stockholders' Equity For the year ended December 31, 2021 Common Stock Retained Total Earnings Stockholders"