Great Adventures Problem 10-1 The following information applies to the questions displayed below) Tony and Suzie purchased land costing $500,000 for a new camp in January 2020. Now they need money to build the cabins, dining facility, a ropes course, and an outdoor swimming pool Tony and Suzie first checked with Summit Bank to see if they could borrow another million dollars, but unfortunately the bank turned them down as too risky. Undeterred, they promoted their idea to close friends they had made through the outdoor clinics and TEAM events. They decided to go ahead and sell shares of stock in the company to raise the additional funds for the camp. Great Adventures has two classes of stock authorized: 8%, $10 par preferred, and $1 par value common. When the company began on July 1, 2018, Tony and Suzie each purchased 10,000 shares of $1 par value common stock at $1 per share. The following transactions affect stockholders' equity during 2020, its third year of July 2 Issue an additional 120,000 shares of common stock for $11 per share. September 10 Repurchase 12,000 shares of its own common stock li.e., treasury stock) for $14 per share. November 15 Reissue 6,000 shares of treasury stock at $15 per share. December 1 Declare a cash dividend on its common stock of $134,000 ($1 per share) to all stockholders of record on December 15. December 31 Pay the cash dividend declared on December 1 Answer is not complete. Date General Journal Debit Credit July 02, 2020 Cash ,320,000 20,000 1,200,000 Common stock Additional paid-in capital September 10, 2020 168,000 Treasury stock Cash 168,000 November 15, 2020 90,000 Cash Treasury stock Additional paid-in capital 84,000 6,000 December 01, 2020 134,000 4 Dividends Dividends payable 34,000 December 15, 2020 Dividends payable 134,000 Cash 134,000 December 31, 2020 Dividends payable Cash 2. Great Adventures has net income of $142,000 in 2020. Retained earnings at the beginning of 2020 was $132,000. Prepare the stockholders' equity section of the balance sheet for Great Adventures as of December 31, 2020. (Amounts to be deducted should be indicated with a minus sign.) Answer is not complete. GREAT ADVENTURES, INC Balance Sheet (Stockholders' Equity Section) December 31, 2020 Stockholders' equity Common stock Additional paid-in capital Preferred stock 32,000 Total paid-in capital Retained earnings Treasury stock 32,000 Total stockholders' equity $32,000