Great Adventures Problem AP3-1 Part 5 5. For the period July 1 to December 31, 2021, prepare an income statement, statement of stockholders' equity and classified balance sheet. Complete this question by entering your answers in the tabs below. Income Stmt of Stockholders Balance Sheet Statement Equity Prepare a classified balance sheet as of December 31, 2021. (Amounts to be deducted should be indicated by a minus sign.) Assets GREAT ADVENTURES, Inc. Balance Sheet December 31, 2021 Liabilities Current Liabilities: Accounts Payable Interest Payable Income Tax Payable Current Assets: Cash Prepaid Insurance Prepaid Rent Supplies (Office) Supplies (Racing) Total Current Assets Long-term assets: Equipment (Bikes) Equipment (Kayaks) Accumulated Depreciation Total Current Liabilities Notes Payable 0 Total Liabilities Stockholders' Equity Common Stock Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity Total Assets 0 $ Stmt of Stockholders Equity Balance Sheet 5. For the period July 1 to December 31, 2021, prepare an income statement, statement of stockholders' equity and classified balance sheet. Complete this question by entering your answers in the tabs below. Income Stmt or Statement Stockholders Balance Sheet Equity For the period July 1 to December 31, 2021, prepare an income statement. GREAT ADVENTURES, Inc. Income Statement December 31, 2021 Revenues Service Revenue Clinic) S Service Revenue Racing) 87,500 23,600 $ 91,100 Total Revenues Expenses: Advertising Expense Depreciation Expense Income Tax Expense Insurance Expense Interest Expense Legal Fees Expense Miscellaneous Expense Rent Expense Salaries Expense Supplies Expense (Office) Supplies Expense (Racing) 1,080 8,600 14,000 5,880 340 1,800 1,300 980 2,400 1,200 2,210 Total Expense Net Income 39.750 51,350 $ Income Statement Stmt of Stockholders Equity > Required Information Great Adventures Problem AP3-1 [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 Suzle organize their new company as a corporation, Great Adventures Inc. The articles of Incorporation state that the corporation will sell 38,000 shares of common stock for $1 each. Each share of stock represents a unit of ownership. Tony and Suzle will act as co-presidents of the company. The following transactions occur from July 1 through December 31. Jul. 1 Sell $19, eee of common stock to Suzie. Jul. 1 Sell $19,eee of common stock to Tony. Jul. 1 Purchase a one-year insurance policy for $5,880 ($490 per month) to cover injuries to participants during outdoor clinics. Jul. 2 Pay legal fees of $1,see associated with incorporation. Jul. 4 Purchase office supplies of $1,200 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 $68 on the day of the clinic. Jul. 8 Purchase 18 mountain bikes, paying $19,388 cash. Jul. 15 on the day of the clinic, Great Adventures receives cash of $4,889 from 20 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 $5,380. Jul. 24 Pay $820 to a local radio station for advertising to appear inmediately. A kayaking clinic will be held on August 10, and attendees can pay $12e in advance or $17e on the day of the clinic. Jul. 30 Great Adventures receives cash of $9,689 in advance from 80 kayakers for the upcoming kayak clinic. Aug. 1 Great Adventures obtains a $34,889 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 $15,480 cash. Aug. 18 Twenty additional kayakers pay $3,4 ($170 each), in addition to the $9,680 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 $11,380 cash. Aug. 24 Office supplies of $1,288 purchased on July 4 are paid in full. Sep. 1 To provide better storage of mountain bikes and kayaks when not in use, the company rents a storage shed for one year, paying $2,BBB ($248 per month) in advance. Sep. 21 Tony conducts a rock-climbing clinic. The company receives $14,600 cash. Oct. 17 Tony conducts an orienteering clinic. Participants practice how to understand a topographical map, read an altimeter, use a compass, and orient through heavily wooded areas. The company receives $18,5ee cash. Dec. 1 Tony decides to hold the company's first adventure race on December 15. Four-person teans will race from checkpoint to checkpoint using a combination of mountain biking, kayaking, orienteering, 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 $598. Dec. 5 To help organize and promote the race, Tony hires his college roonnate, Victor. Victor will be paid $6e in salary for each tean that competes in the race. His salary will be paid after the race. Dec. 8 The company pays $1,388 to purchase a pernit from a state park where the race will be held. The amount is recorded as a miscellaneous expense. Dec. 12 The company purchases racing supplies for $2,5ee on account due in 30 days. Supplies include trophies for the top-finishing teams in each category, promotional shirts, Snack foods and drinks for participants, and field markers to prepare the racecourse. Dec. 15 The company receives $23,6ee cash from a total of forty teams, and the race is held. Dec. 16 The company pays Victor's salary of $2,488. Dec. 31 The company pays a dividend of $3,500 ($1,750 to Tony and $1,750 to Suzie). Dec. 31 Using his personal money, Tony purchases a diamond ring for $5,308. Tony surprises Suzie by proposing that they get married. Suzie 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 $8.600. 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 $1.200 of office supplies purchased on July 4, $250 remains. e. Interest expense on the $34.000 loan obtained from the city council on August 1 should be recorded. f. Of the $2.500 of racing supplies purchased on December 12. $290 remains. 9. Suzle calculates that the company owes $14,000 in income taxes. Great Adventures Problem AP3-1 Part 5 5. For the period July 1 to December 31, 2021, prepare an Income statement, statement of stockholders' equity and classified balance sheet. Complete this question by entering your answers in the tabs below. Stmt of Income Stockholders Balance Sheet Statement Equity For the period July 1 to December 31, 2021, prepare a statement of stockholders' equity. All account balances on July 1 were zero GREAT ADVENTURES, Inc. Statement of Stockholders' Equity For the Period Ended December 31, 2021 Common Stock Retained Earnings Balance at July 1 Issuance of Common Stock 36,000 Net Income for 2021 Dividends Balance at December 31 Total Stockholders' Equity 36.000