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 Suzie organize their new company as a corporation, Great Adventures Inc. The articles of incorporation state that the corporation will sell 36,000 shares of common stock for $1 each Each shore of stock represents a unit of ownership. Tony and Suzie will act as co-presidents of the company. The following transactions occur from July 1 through December 31 JulSell $10,000 of common stock to Suni. 1 soll $18,000 of common stock to Tony. 1 Purchase a one year insurance policy for $5,000 (5490 per month) to cover injuries to participants during outdoor clinics. Jul. 2 Pay legal fees of $1,800 ociated with incorporation. Jul. 4 Purchase office supplies of $1,600 on account. Jul. 2 way for advertising of $280 to a local newspaper for an upcoming mountain biking cline to be held on July 15. Attendees will be charged 540 on the day of the clinic Jul. 8Purchase 10 mountain bikes, paying $11,100 cash. Jul 15 on the day of the clinic, Great Adventures receives cash of $2,800 from 10 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 $3,200 Jul. 24 Pay $700 to a local radio station for advertising to appear immediately. A kayaking clinic will be and BRTAR and the company receives $3,200. Jul. 24 Pay $700 to a local radio station for advertising to appear immediately. A kayaking clinic will be held on August 10, and attendees can pay $140 in advance or $190 on the day of the clinic. Jul. 30 Great Adventures receives cash of $5,600 in advance from 40 kayakers for the upcoming kayak clinic. Aug. 1 Great Adventurou obtains a $50,000 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 68 annual interest is due each year on July 31. Aug. 4 The company purchases 14 kayaks, paying $20,400 cash. Aug. 10 Twenty additional kayakers pay $3,800 ($190 each), in addition to the $5,600 that was paid in advance on July 30, on the day of the clinic. Tony conducts the first kayak clinic. Aug. 17 Tony conducto a second kayak clinic, and the company receives $11.400 cash. Aug. 24 Office supplies of $1,600 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 $2,760 ($230 per month) in advance. Sep. 21 Tony conducts a rock-climbing clinic. The company receives $13,700 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 $19,300 cash. Dec 1 Tony decides to hold the company's first adventure ace on December 15. Four-person team 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 a11 checkpoints in order wins. The entry fee for each team is $620. Dea. 5 To help organize and promote the race, Tony hiru hio college roommate, Victor. Victor will be paid $50 in salary for each team that compete in the race. Its salary will be paid after the race. Dec. 8. The company pays $1,000 to purchase a permit 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 $2,600 on account due in 30 days. Supplies include trophies for the top-finishing teams in each category, promotional shirts, snack foods and drinks tor participants, and field markers to prepare the racecourse. Dec. 15 The company receives $24,800 cash from a total of forty teams, and the race is held. Dec. 16 The company pays Victor's salary of $2,000. 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 $5,300. Tony surprise Suzie by proposing that they get married. Suzio accepts and they get married The following information relates to year-end adjusting entries as of December 31, 2021 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 $7,700. 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 $1,600 of office supplies purchased on July 4, $370 remains. e Interest expense on the $50,000 loan obtained from the city council on August 1 should be recorded. f. Of the $2,600 of racing supplies purchased on December 12, $190 remains. g. Suzie calculates that the company owes $14,500 in income taxes. reat Adventures Problem AP3-1 Part 6 Record closing entries as of December 31, 2021. (If no entry is required for a transaction/event, select "No journal entry in the first account field.) Journal entry worksheet Record the closing of expense accounts. Note: Enter debits before credits. General Journal Date Dec 31, 2021 Debit Credit Journal entry worksheet Record the closing of dividends account. Note: Enter debits before credits. General Jourrit Debit Credit Date Dec 31, 2021 Record entry Clear entry View general Journal