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 20,000 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 transactions occur from July 1 through December 31 Jul. 1 soll $10,000 of common stock to Surie. Jul. 1 Sell $10,000 of common stock to Tony. Jul. 1 Purchase a one-year Insurance policy for $5,400 ($450 per month) to cover injuries to participants during outdoor clinics. Jul. 2 Pay legal fees of $1.600 associated with incorporation. Jul. 4 Purchase office supplies of $1,700 on account. Jul. 7 Pay for advertising of $270 to a local newspaper for an upcoming mountain biking elinie to be held on July 15. Attendees will be charged $70 on the day of the elinie. Jul. Purchase 10 mountain bikes, paying $17,300 cash. Jul. 15 On the day of the clinic, Great Adventures receives cash of 4,200 from 60 bikers. Tony conducts the mountain bikingelinle. Jul. 22 Because of the success of the first mountain biking elinie, Tony holds another mountain biking clinic and the company receives $4,600. Jul. 24 Pay $770 to a local radio station for advertising to appear immediately. A kayaking elinie 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 $11, 200 in advance from 80 kayakers for the upcoming kayak elinie. Aug. 1 Great Adventures obtain a $45,000 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 60 annual interest is due each year on July 31. Aug. 4 The company purchases 14 kayaks, paying $14,400 cash. Aug. 10 Twenty additional kayakers pay $3,800 ($190 each), in addition to the $11,200 that was paid in advance on July 30, on the day of the clinic. Tony conducts the first kayak elinie. Aug. 17 Tony conducts a second kayak elinie, and the company receives $10,800 cash. Aug. 20 Office supplies of $1,700 purchased on July 4 are paid in full. Sep. 1 To provide better storage of mountain bike and kayaks when not in use, the company renta a storage shed for one year, paying $4,680 ($390 per month) in advance. Sep. 21 Tony conducts a rock-climbing olinie. The company receives $13,300 cash. Sep. 21 Tony conducts & rock-climbing clinic. The company receives $13,300 cash. Oct. 17 Tony conduct an orienteering clinic. Participants practice how to understand a topographical map, read an altimeter, we compass, and orient through heavily wooded areas. The company receives $19,200 cash. Dec. 1 Tony decides to hold the company's first adventure race on December 15. Your person team will race from checkpoint to checkpoint using a combination of mountain biking, kayaking, orienteering, trail running and rock-elimbing skills. The first team in each category to complete all checkpoints in order wins. The entry fee for each team is $680. Dec. 5 To help organize and promote the race, Tony hires his college roomate, Victor. Victor will be paid $60 in salary for each team that competes in the race. His salary will be paid after the race. Dec. The company pays $1,400 to purchase a pornit 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 sach category, promotional shirts, snack foods and drinks for participants and field markers to prepare the racecourse. Dec. 15 The company receives $27.200 cash from a total of forty teams, and the race is held. Dec. 16 The company pays Vietor's salary of $2,400. Dec. 31 The company pays a dividend of $4,800 ($2,400 to Tony and $2,400 to Suzie). Dec. 31 Using his personal money. Tony purchases a diamond ring for $4,500. Tony surprises Suzie by proposing that they get married. Sure 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 $7100, 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 $1,700 of office supplies purchased on July 4, $350 remains. e. Interest expense on the $45,000 loan obtained from the city council on August 1 should be recorded. f. Of the $2,600 of racing supplies purchased on December 12, $220 remains. g. Suzie calculates that the company owes $13,100 in income taxes. Great Adventures Problem AP3-1 Part 4 4. Prepare an adjusted trial balance as of December 31, 2021 Cash Prepaid Insurance Prepaid Rent Supplies (Office) Supplies (Racing) Equipment (Bikes) Equipment (Kayaks) Accumulated Depreciation Accounts Payable Income Tax Payable Interest Payable Notes Payable Common Stock Dividends Service Revenue (Clinic) Service Revenue (Racing) Advertising Expense Depreciation Expense Income Tax Expense Insurance Expense Interest Expense Legal Fees Expense Miscellaneous Expense Rent Expense Salries Expense Supplies Expense (Office) Supplies Expense (Racing) Totale Isol sol 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 20,000 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 transactions occur from July 1 through December 31 Jul. 1 soll $10,000 of common stock to Surie. Jul. 1 Sell $10,000 of common stock to Tony. Jul. 1 Purchase a one-year Insurance policy for $5,400 ($450 per month) to cover injuries to participants during outdoor clinics. Jul. 2 Pay legal fees of $1.600 associated with incorporation. Jul. 4 Purchase office supplies of $1,700 on account. Jul. 7 Pay for advertising of $270 to a local newspaper for an upcoming mountain biking elinie to be held on July 15. Attendees will be charged $70 on the day of the elinie. Jul. Purchase 10 mountain bikes, paying $17,300 cash. Jul. 15 On the day of the clinic, Great Adventures receives cash of 4,200 from 60 bikers. Tony conducts the mountain bikingelinle. Jul. 22 Because of the success of the first mountain biking elinie, Tony holds another mountain biking clinic and the company receives $4,600. Jul. 24 Pay $770 to a local radio station for advertising to appear immediately. A kayaking elinie 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 $11, 200 in advance from 80 kayakers for the upcoming kayak elinie. Aug. 1 Great Adventures obtain a $45,000 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 60 annual interest is due each year on July 31. Aug. 4 The company purchases 14 kayaks, paying $14,400 cash. Aug. 10 Twenty additional kayakers pay $3,800 ($190 each), in addition to the $11,200 that was paid in advance on July 30, on the day of the clinic. Tony conducts the first kayak elinie. Aug. 17 Tony conducts a second kayak elinie, and the company receives $10,800 cash. Aug. 20 Office supplies of $1,700 purchased on July 4 are paid in full. Sep. 1 To provide better storage of mountain bike and kayaks when not in use, the company renta a storage shed for one year, paying $4,680 ($390 per month) in advance. Sep. 21 Tony conducts a rock-climbing olinie. The company receives $13,300 cash. Sep. 21 Tony conducts & rock-climbing clinic. The company receives $13,300 cash. Oct. 17 Tony conduct an orienteering clinic. Participants practice how to understand a topographical map, read an altimeter, we compass, and orient through heavily wooded areas. The company receives $19,200 cash. Dec. 1 Tony decides to hold the company's first adventure race on December 15. Your person team will race from checkpoint to checkpoint using a combination of mountain biking, kayaking, orienteering, trail running and rock-elimbing skills. The first team in each category to complete all checkpoints in order wins. The entry fee for each team is $680. Dec. 5 To help organize and promote the race, Tony hires his college roomate, Victor. Victor will be paid $60 in salary for each team that competes in the race. His salary will be paid after the race. Dec. The company pays $1,400 to purchase a pornit 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 sach category, promotional shirts, snack foods and drinks for participants and field markers to prepare the racecourse. Dec. 15 The company receives $27.200 cash from a total of forty teams, and the race is held. Dec. 16 The company pays Vietor's salary of $2,400. Dec. 31 The company pays a dividend of $4,800 ($2,400 to Tony and $2,400 to Suzie). Dec. 31 Using his personal money. Tony purchases a diamond ring for $4,500. Tony surprises Suzie by proposing that they get married. Sure 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 $7100, 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 $1,700 of office supplies purchased on July 4, $350 remains. e. Interest expense on the $45,000 loan obtained from the city council on August 1 should be recorded. f. Of the $2,600 of racing supplies purchased on December 12, $220 remains. g. Suzie calculates that the company owes $13,100 in income taxes. Great Adventures Problem AP3-1 Part 4 4. Prepare an adjusted trial balance as of December 31, 2021 Cash Prepaid Insurance Prepaid Rent Supplies (Office) Supplies (Racing) Equipment (Bikes) Equipment (Kayaks) Accumulated Depreciation Accounts Payable Income Tax Payable Interest Payable Notes Payable Common Stock Dividends Service Revenue (Clinic) Service Revenue (Racing) Advertising Expense Depreciation Expense Income Tax Expense Insurance Expense Interest Expense Legal Fees Expense Miscellaneous Expense Rent Expense Salries Expense Supplies Expense (Office) Supplies Expense (Racing) Totale Isol sol