Great Adventures Problem AP2-1 [The following information applies to the questions displayed below. 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 21,000 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 $10,500 of common stock to Suzie. Jul. 1 Sell $10,500 of common stock to Tony. Jul. 1 Purchase a one-year insurance policy for $6,000 ($500 per month) to cover injuries to participants during outdoor clinics. Jul. 2 Pay legal fees of $1,200 associated with incorporation. Jul. 4 Purchase office supplies of $1,100 on account. Jul. 7 Pay $220 to a local newspaper for advertising to appear immediately for an upcoming mountain biking clinic to be held on July 15. Attendees will be charged $40 the day of the clinic. Jul. 8 Purchase 10 mountain bikes, paying $10,700 cash. Jul. 15 On the day of the clinic, Great Adventures receives cash of $2,400 from 60 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 $2,800. Jul. 24 Pay $630 to a local radio station for advertising to appear immediately. A kayaking clinic will be held on August 10, and attendees can pay $130 in advance or $180 on the day of the clinic. Jul. 30 Great Adventures receives cash of $7,800 in advance from 60 kayakers for the upcoming kayak clinic. Answer is complete and correct. No Date General Journal Debit Credit 1 July 01 10,500 Cash Common Stock 10,500 2 July 01 10,500 Cash Common Stock 10,500 3 July 01 6,000 Prepaid Insurance Cash 6,000 4 July 02 1,200 Legal Fees Expense Cash 1,200 July 04 1,100 Supplies Accounts Payable 1,100 6 July 07 220 Advertising Expense Cash 220 7 July 08 10,700 Equipment Cash 10,700 8 July 15 2,400 Cash Service Revenue 2,400 9 July 22 2,800 Cash Service Revenue 2,800 10 July 24 630 Advertising Expense Cash 630 11 July 30 7,800 Cash Deferred Revenue 7,800 Prepaid Insurance > July 1 July 1 July 1 July 15 July 22 Cash 10,500 10,500 2,400 2,800 July 1 July 2 July 24 July 7 OOOO > End. bal. > 7,800 July 8 July 30 End. bal. Supplies Equipment July 4 July 8 End bal. End, bal Accounts Payable Deferred Revenue End. bal. End. bal. Common Stock Service Revenue End. bal. End. bal. Advertising Expense Legal Fees Expense July 2 July 7 July 24 End hal End hal Credit GREAT ADVENTURES, INC. Trial Balance July 31, 2021 Accounts Debit Cash Prepaid Insurance Supplies Equipment Common Stock Accounts Payable Deferred Revenue Service Revenue Legal Fees Expense Advertising Expense Totals 0 $ $ 0