Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Great Adventures Problem 3-1 The articles of incorporation state that the corporation will sell 35,000 shares of common stock for $1 each. Each share of

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Great Adventures Problem 3-1 The articles of incorporation state that the corporation will sell 35,000 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 business activities occur during July for Great Adventures Jul. 1 Sell $17,500 off common stock to Suzie Jul. 1 Sell $17.500 of common stock to Tony Jul 1 Jul 2 Pay legal fees of $1600 associated with incorporation Jul 4 P Jul. 7 Pay for Jul. 8 Purchase 10 mountain bikes, paying $18,000 cash. Jul. 15 On the day of the clinic, Great Jul. 22 B ut 24 Pay for advertising of S780 to local rad? Staton for a keyaking cine to be held on August 10 Attendees cen pay S130 in advance or $180 on the day of the dnic. Jul. 30 Great a one-year insurance policy for $3,960 ($330 per month) to cover es to perticipents e office supplies of $1,500 on account of $320 to a local newspeper for an upcoming mountain biking clinic to be will be charged $60 the day of the clinic s receives cash of $3.000 from 50 bikers Tony conducts the mountan bking clinic biking clinic, Tony holds another mounten biking cinic and the c loan for the comparny from the city council, which hes recently pessed an initiative encoureging business development related to outdoor ectivites The loan is due in three years and 6% annual interest is due each year on July 31 Aug. 4 The company Aug. 10 Twenty a Aug 17 Tony conducts a second kayak clinic, and the compeny receives $11,800 cash Aug 24 Office supplies of $1,500 purchased on July 4 are paid in full. Sep. 1 To Sep 21 Tony conducts a Oct 17 Tony conducts an orienteering clinic. Participants practice how to 14 kayaks, paying $18,700 cash pay $3,600 ($180 each), in eddition to the $10,400 that was paid in advance on July 30, on the day of the clinic. Tony conducts the first kayak clinic bing clinic. The company receives $14,200 cash 811 PM 6/25/2018

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting For Management

Authors: Paresh Shah

2nd Edition

0198077033, 978-0198077039

More Books

Students also viewed these Accounting questions