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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 Suzle will act as co-presidents of the company. The following transactions accur from July 1 through December 31. Jul. 1 Sell $10,000 of common stock to Suzie. Jul. 1 Sell $10,000 of common stock to Tony. Jul. 1 Purchase a one year insurance policy for $4,800 ($400 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 $1,800 on account Jul. 7 Pay for advertising of $300 to a local newspaper for an upcoming mountain biking clinic to be held on July 15. Attendees will be charged $50 on the day of the clinic. Jul. & Purchase 10 mountain bikes, paying $12.000 cash. Jul. 15 On the day of the clinic, Great Adventures receives cash of $2,000 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 $2,300, 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 $100 in advance or $150 on the day of the clinic. Jul. 30 Great Adventures receives cesh of $4,000 in advance from 40 kayakers for the upcoming kayek clinic. Aug 1 Great Adventures obtains a $30,000 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 kavaks. paving S28.000 cash. Aug. 10 Twenty additional keyakers pay $3,000 (5150 each), in addition to the $4,000 that was paid in advance on July 30, on the day of the clinic. Tony conducts the first keyak clinic. Aug 17 Tony conducts a second kayak clinic, and the company receives $10,500 cash. Aug. 24 Office supplies of $1,800 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 $2,400 ($200 per month in advance. Sep. 21 Tony conducts a rock-climbing clinic. The company receives 513,200 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 $17,900 cash. Dec. 1 Tony decides to hold the company's first adventure race on December 15. Four-person teams will rece 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 S500. Dec. 5 To help orgenize and promote the race, Tony hires his college roommate, Victor. Victor will be paid $50 in selery for each team that competes in the race. His selery will be paid after the race. Der 8 The company pays $1.200 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 $2,800 on account due in 30 days. Supplies include trophies for the top-finishing teams in each category, promotional shirts, snack foods and drinks for perticipants, and field markers to prepare the racecourse. Dec. 15 The company receives $20,000 cash from a total of forty teems, and the race is held. Dec. 16 The company pays Victor's salary of $2.000 Dec. 31 The company pays a dividend of $4.000 ($2,000 to Tony and $2,000 to Suziej. Dec 31 Using his personal money, Tony purchases a diamond ring for $4,500 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 $8,000. 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 $1,800 of office supplies purchased on July 4, $300 remains. e. Interest expense on the $30,000 loan obtained from the city council on August 1 should be recorded. f. Of the $2,800 of racing supplies purchased on December 12, $200 remains. g. Suzie calculates that the company owes $14,000 in income taxes. 3. Post transactions from July 1 through December 31 and adjusting entries on December 31 to T-accounts. Cash Prepaid Insurance Beg. Bal. Jul. 1 Dec. 1 10,000 10,000 4,800 1 4,800 1,500 300 12,000 Beg. Bal. Jul. 1 Jul. 1 Jul. 1 Jul. 2 Jul. 7 Jul. 8 Jul. 15 Jul. 22 Jul. 24 Jul. 30 Aug. 1 Jul. 4 End. Bal. 2 ,000 2,300 End. Bal. End Dol 4 80nl 700 4 ,000 30,000 39,000 Prepaid Rent Supplies (Office) Beg. Bal. Beg. Bal. Sep. 1 4,800 End. Bal. 4,800 End. Bal. 0 Supplies (Racing) Equipment (Bikes) Beg. Bal. Beg. Bal. un non Required information Beg. Bal. Part 3 of 5 Beg. Bal. Sep. 1 4 ,800 End. Bal. 4,800 End. Bal. 7 points Supplies (Racing) Equipment (Bikes) Beg. Bal. Beg. Bal. eBook End. Bal. 0 End. Bal. Print Equipment (Kayaks) Accumulated Depreciation Beg. Bal. Beg. Bal. References End. Bal. End. Bal. Accounts Payable Deferred Revenue Beg. Bal. Beg. Bal. End. Bal. End. Bal. Interest Payable Income Tax Payable Beg. Bal. Beg. Bal. Required information Interest Payable Income Tax Payable Part 3 of 5 Beg. Bal. Beg. Bal. End. Bal. 0 End. Bal. 0 points Notes Payable Common Stock Beg. Bal. Beg. Bal. eBook End. Bal. End. Bal. Print Dividends Service Revenue (Clinic) Beg. Bal. Beg. Bal. References End. Bal. 0 End. Bal. Service Revenue (Racing) Advertising Expense Beg. Bal. Beg. Bal. Legal Fees Expense Miscellaneous Expense Beg. Bal. Beg. Bal. End. Bal. End. Bal. Salaries Expense Depreciation Expense Beg. Bal. Beg. Bal. End. Bal. O End. Bal. 01 Insurance Expense Rent Expense Beg. Bal. Beg. Bal. End. Bal. 01 End. Bal. Supplies Expense (Office) Supplies Expense (Racing) Beg. Bal. Beg. Bal. End. Bal. 0 End. Bal. 0 Interest Expense Income Tax Expense Beg. Bal. Beg. Bal. 4. Prepare an adjusted trial balance as of December 31, 2021. Credit GREAT ADVENTURES, Inc. Adjusted Trial Balance December 31, 2021 Accounts Debit 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 Required information 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) Totals $ 0 $ 0 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 Statement Stmt of 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: Total Revenues Expenses: Required information Income Statement December 31, 2021 Revenues: Total Revenues Expenses: Total Expense 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. 3 Income Statement Stmt of Stockholders Balance Sheet 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 Total Stockholders' Equity 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.) GREAT ADVENTURES, Inc. Balance Sheet December 31, 2021 Assets Liabilities Current Assets: Current Liabilities: Total Current Liabilities 0 Total Current Assets Long-term assets: Total Liabilities Stockholders' Equity Total Stockholders' Equity Total Liabilities and Stockholders' Equity Total Assets 0 Return to questi e. Interest expense on the $30,000 loan obtained from the city council on August 1 should be recorded. f. Of the $2,800 of racing supplies purchased on December 12, $200 remains. g. Suzie calculates that the company owes $14,000 in income taxes. Part 1 of 5 Required: points 1. Record transactions from July 1 through December 31. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Answer is not complete. No General Journal Credit Date Jul 01, 2021 Debit 10,000 Cash Common Stock 10,000 Jul 01, 2021 10,000 Cash Common Stock 10,000 Jul 01, 2021 4.800 Prepaid Insurance Cash 4,800 Jul 02, 2021 1,500 Legal Fees Expense Cash 1,500 Jul 04, 2021 1,800 Supplies (Office) Accounts Pavable 1.800 Return to qu Required information Part 1 of 5 12 Aug 01, 2021 Cash 30,000 Notes Payable 30,000 13 Aug 04, 2021 28,000 Equipment (Kayaks) Cash points 28,000 14 Aug 10, 2021 3,000 Cash Service Revenue (Clinic) 3,000 X 15 Aug 17, 2021 Cash 10,500 Service Revenue (Clinic) 10,500 16 Aug 24, 2021 1,800 Accounts Payable Cash 1,800 17 Sep 01, 2021 2,400 Prepaid Rent Cash 2,400 18 Sep 21, 2021 Cash 13,200 Service Revenue (Clinic) 13,200 19 Oct 17, 2021 17,900 Cash Service Revenue (Clinic) 17,900 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 Suzle will act as co-presidents of the company. The following transactions accur from July 1 through December 31. Jul. 1 Sell $10,000 of common stock to Suzie. Jul. 1 Sell $10,000 of common stock to Tony. Jul. 1 Purchase a one year insurance policy for $4,800 ($400 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 $1,800 on account Jul. 7 Pay for advertising of $300 to a local newspaper for an upcoming mountain biking clinic to be held on July 15. Attendees will be charged $50 on the day of the clinic. Jul. & Purchase 10 mountain bikes, paying $12.000 cash. Jul. 15 On the day of the clinic, Great Adventures receives cash of $2,000 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 $2,300, 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 $100 in advance or $150 on the day of the clinic. Jul. 30 Great Adventures receives cesh of $4,000 in advance from 40 kayakers for the upcoming kayek clinic. Aug 1 Great Adventures obtains a $30,000 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 kavaks. paving S28.000 cash. Aug. 10 Twenty additional keyakers pay $3,000 (5150 each), in addition to the $4,000 that was paid in advance on July 30, on the day of the clinic. Tony conducts the first keyak clinic. Aug 17 Tony conducts a second kayak clinic, and the company receives $10,500 cash. Aug. 24 Office supplies of $1,800 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 $2,400 ($200 per month in advance. Sep. 21 Tony conducts a rock-climbing clinic. The company receives 513,200 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 $17,900 cash. Dec. 1 Tony decides to hold the company's first adventure race on December 15. Four-person teams will rece 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 S500. Dec. 5 To help orgenize and promote the race, Tony hires his college roommate, Victor. Victor will be paid $50 in selery for each team that competes in the race. His selery will be paid after the race. Der 8 The company pays $1.200 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 $2,800 on account due in 30 days. Supplies include trophies for the top-finishing teams in each category, promotional shirts, snack foods and drinks for perticipants, and field markers to prepare the racecourse. Dec. 15 The company receives $20,000 cash from a total of forty teems, and the race is held. Dec. 16 The company pays Victor's salary of $2.000 Dec. 31 The company pays a dividend of $4.000 ($2,000 to Tony and $2,000 to Suziej. Dec 31 Using his personal money, Tony purchases a diamond ring for $4,500 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 $8,000. 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 $1,800 of office supplies purchased on July 4, $300 remains. e. Interest expense on the $30,000 loan obtained from the city council on August 1 should be recorded. f. Of the $2,800 of racing supplies purchased on December 12, $200 remains. g. Suzie calculates that the company owes $14,000 in income taxes. 3. Post transactions from July 1 through December 31 and adjusting entries on December 31 to T-accounts. Cash Prepaid Insurance Beg. Bal. Jul. 1 Dec. 1 10,000 10,000 4,800 1 4,800 1,500 300 12,000 Beg. Bal. Jul. 1 Jul. 1 Jul. 1 Jul. 2 Jul. 7 Jul. 8 Jul. 15 Jul. 22 Jul. 24 Jul. 30 Aug. 1 Jul. 4 End. Bal. 2 ,000 2,300 End. Bal. End Dol 4 80nl 700 4 ,000 30,000 39,000 Prepaid Rent Supplies (Office) Beg. Bal. Beg. Bal. Sep. 1 4,800 End. Bal. 4,800 End. Bal. 0 Supplies (Racing) Equipment (Bikes) Beg. Bal. Beg. Bal. un non Required information Beg. Bal. Part 3 of 5 Beg. Bal. Sep. 1 4 ,800 End. Bal. 4,800 End. Bal. 7 points Supplies (Racing) Equipment (Bikes) Beg. Bal. Beg. Bal. eBook End. Bal. 0 End. Bal. Print Equipment (Kayaks) Accumulated Depreciation Beg. Bal. Beg. Bal. References End. Bal. End. Bal. Accounts Payable Deferred Revenue Beg. Bal. Beg. Bal. End. Bal. End. Bal. Interest Payable Income Tax Payable Beg. Bal. Beg. Bal. Required information Interest Payable Income Tax Payable Part 3 of 5 Beg. Bal. Beg. Bal. End. Bal. 0 End. Bal. 0 points Notes Payable Common Stock Beg. Bal. Beg. Bal. eBook End. Bal. End. Bal. Print Dividends Service Revenue (Clinic) Beg. Bal. Beg. Bal. References End. Bal. 0 End. Bal. Service Revenue (Racing) Advertising Expense Beg. Bal. Beg. Bal. Legal Fees Expense Miscellaneous Expense Beg. Bal. Beg. Bal. End. Bal. End. Bal. Salaries Expense Depreciation Expense Beg. Bal. Beg. Bal. End. Bal. O End. Bal. 01 Insurance Expense Rent Expense Beg. Bal. Beg. Bal. End. Bal. 01 End. Bal. Supplies Expense (Office) Supplies Expense (Racing) Beg. Bal. Beg. Bal. End. Bal. 0 End. Bal. 0 Interest Expense Income Tax Expense Beg. Bal. Beg. Bal. 4. Prepare an adjusted trial balance as of December 31, 2021. Credit GREAT ADVENTURES, Inc. Adjusted Trial Balance December 31, 2021 Accounts Debit 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 Required information 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) Totals $ 0 $ 0 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 Statement Stmt of 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: Total Revenues Expenses: Required information Income Statement December 31, 2021 Revenues: Total Revenues Expenses: Total Expense 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. 3 Income Statement Stmt of Stockholders Balance Sheet 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 Total Stockholders' Equity 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.) GREAT ADVENTURES, Inc. Balance Sheet December 31, 2021 Assets Liabilities Current Assets: Current Liabilities: Total Current Liabilities 0 Total Current Assets Long-term assets: Total Liabilities Stockholders' Equity Total Stockholders' Equity Total Liabilities and Stockholders' Equity Total Assets 0 Return to questi e. Interest expense on the $30,000 loan obtained from the city council on August 1 should be recorded. f. Of the $2,800 of racing supplies purchased on December 12, $200 remains. g. Suzie calculates that the company owes $14,000 in income taxes. Part 1 of 5 Required: points 1. Record transactions from July 1 through December 31. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Answer is not complete. No General Journal Credit Date Jul 01, 2021 Debit 10,000 Cash Common Stock 10,000 Jul 01, 2021 10,000 Cash Common Stock 10,000 Jul 01, 2021 4.800 Prepaid Insurance Cash 4,800 Jul 02, 2021 1,500 Legal Fees Expense Cash 1,500 Jul 04, 2021 1,800 Supplies (Office) Accounts Pavable 1.800 Return to qu Required information Part 1 of 5 12 Aug 01, 2021 Cash 30,000 Notes Payable 30,000 13 Aug 04, 2021 28,000 Equipment (Kayaks) Cash points 28,000 14 Aug 10, 2021 3,000 Cash Service Revenue (Clinic) 3,000 X 15 Aug 17, 2021 Cash 10,500 Service Revenue (Clinic) 10,500 16 Aug 24, 2021 1,800 Accounts Payable Cash 1,800 17 Sep 01, 2021 2,400 Prepaid Rent Cash 2,400 18 Sep 21, 2021 Cash 13,200 Service Revenue (Clinic) 13,200 19 Oct 17, 2021 17,900 Cash Service Revenue (Clinic) 17,900
