Great Adventures Problem 3-1 [The following information applies to the questions displayed below.] 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 The articles of incorporation state that the corporation will sell 37,000 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 $18,500 of common stock to Suzie Jul. 1 Sell $18,500 of common stock to Tony Jul. 1 Purchase a one-year insurance policy for $5,040 ($420 per month) to cover injuries to participants during outdoor clinics Jul. 2 Pay legal fees of $1,500 associated with incorporation Jul. 4 Purchase office supplies of $1,600 on account. Jul. 7 Pay for advertising of $390 to a local newspaper for an upcoming mountain biking clinic to be held on July 15. Attendees will be charged $30 the day of the clinic Jul. 8 Purchase 10 mountain bikes, paying $18,000 cash Jul. 15 On the day of the clinic, Great Adventures receives cash of $1,200 from 40 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 $1,700 Jul. 24 Pay for advertising of $830 to a local radio station for a kayaking clinic to be held on August 10. Attendees can pay $130 in advance or $180 on the day of the clinic Jul. 30 Great Adventures receives cash of $9,100 in advance from 70 kayakers for the upcoming kayak clinic Aug. 1 Great Adventures obtains a $33,000 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 $15,400 cash Aug. 10 Twenty additional kayakers pay $3,600 ($180 each), in addition to the $9,100 that was paid in advance on July 30, on the day of the clinic. Tony conducts the first kayak clinic Aug. 17 Tony conducts a second kayak clinic, and the company receives $11,600 cash