how would i prepare this income statement?
Tony and Szie graduate from college in May 2024 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, 2024, Tony and Suzie organize their new company as a corporation, Great Adventures Incorporated The articles of incorporation state that the corporation will sell 36,000 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. July1Julf1July1Juty2July4July7Selt$18,000ofconmonstocktoSuzie.Sell$18,000ofcommonstocktoTony.Purchaseaone-yearinsurancepolicyfor$3,840($320permonth)tocoverinjuriestoparticipantsduringoutdoorclinics.Purgalfeesof$1,700associatedwithincorporation.Pay$27etoalocalnewspaperforadvertisingtoappearinmediatelyforanupconingmountain July 8 biking clinic to be held on July 15. Attendees witl be charged 560 the day of the clinic. July 15 Purchase 10 mountain bikes, paying $14,500 cash. July 15 On the day of the clinic, Great Adventures receives cash of $3,600 in totat from 60 bikers. Tony July 22 Because of the success of the first mountain biking clinic, Tony and Suzie hotds another July 24 mountain biking clinic and the company receives $4,000. be held on August 10, and attendees can pay 5130 in advear immediately. A kayaking clinic will July 30 Great Adventures receives total cash of $6,500 in advance from $18 on the day of the clinic. kayak clinic. The following transactions occur over the remainder of 2024. August 1 Great Adventures obtains a $43, 00e low-interest loan for the company from the city council, which has recently passed an initiative encouraging business developnent related to outdoor August 4 The cospany purchases 14 kayaks, paying 515,400 cash. annual interest is due each year on July 31. August 4 The conpany purchases 14 kayaks, paying $15,400 cash. advance from kayakers on July 30 , the compeny. In addition to the $6,500 that was received in kayakers on the day of the clinic. August 17: Tony and Suzie conducts a second kayak August 24 office supolies of $1,900 purchased kayak clinic, and the company receives $11,200 cash. September 1 To provide better storage of Tounta on July 4 are paid in full. storage shed for one year, paying $4,680 ( $340 per pays when not in use, the company rents a sodvance. August 17 . Kayakers on the day of the clinic. August 17 Tony and Suzie conducts a second kayak clinic, and the conpany receives s11, 208 cash. August 24 office supplies of $1,900 purchased on July 4 are paid in full. September 1 To provide better storage of mountain bikes and kayaks when not in use, the company rents a September storage shed for one year, paying $4,080 ( $340 per month) in advance. Septenber 21 Tony and Suzie conduct a rock-climbing clinic. The company receives $14,909 cash. October 17 Tony and Suzie conduct 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 $18,800 cash. Decenber 1 Tony and Suzie decide to hold the conpany's first adventure race on December 15. Four-person. teams will race trom checkpoint to checkpoint using a combination of mountain biking. kayaking. orienteering, trail running, and rock-climbing skills. The first team in each category to conplete at1 checkpoints in order wins. The entry fee for each team is $520. December 5 To help organize and pronote the race, Tony hires his college roommate, Victor. Victor will be paid $60 in salary for each tean that competes in the race. His salary will be paid after the race. Decenber 8 The company pays $1,400 to purchase a permit from a state park where the race witl be held. The Decomber 12 amount is recorded as a miscellaneous expense. Decenber 12 The company purchases racing supplies for $2,500 on account due in 30 days. 5 upplies include trophies for the top-finishing teams in each category, prosiotional shirts, snack foods and drinks for participants, and field markers to prepare the racecourse. Decenber 15 The company receives $20,800 cash from a total of forty teams, and the race is held. December 16 The company pays Victor's salary of $2,480. Decenber 31 The company pays a dividend of $4,200($2,100 to Tony and $2,100 to 5 azie). December 31 Using his personal money, Tony purchases a diamond ring for $4,500. Tony surprises Suzie by. proposing that they get inarried. Suzie accepts and they get narriedl The following information relates to year-end adjusting entries as of December 31, 2024. a. Depreciation of the mountain bikes purchased on July 8 and kayaks purchased on August 4 totals $8,200. b. Slx 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 $1,900 of office supplies purchased on July 4,$360 remains. e. Interest expense on the $43,000 loan obtained from the city council on August 1 should be recorded. f. Of the $2,500 of racing supplies purchased on December 12 , $100 remains. 9. Suzle calculates that the company owes $13,700 in income tax0s. For the period July 1 to December 31,2024 , prepare an income statement
