im still doing something wrong not sure if im using the appropriate accounts foe each nor do i think i got the numbers correct.
this is the work i've done but again not sure any of its correct.
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 30.000 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 Sell $15,000 of common stock to Suzie. Jul 1 Sell $15,000 of common stock to Tony. Jul. 1 Purchase a one-year insurance policy for $4,320 ($368 per month) to cover injuries to participants during outdoor clinics. Jul 2 Pay legal fees of $1,100 associated with incorporation. Jul. 4 Purchase office supplies of $1,588 on account. Jul. 7 Pay for advertising of $290 to a local newspaper for an upcoming mountain biking clinic to be held on July 15. Attendees will be charged $70 on the day of the clinic. Jul. 8 Purchase 10 mountain bikes, paying $18,780 cash. Jul. 15 On the day of the clinic, Great Adventures receives cash of $4,200 from 60 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 $4,889. Jul. 24 Pay $730 to a local radio station for advertising to appear immediately. A kayaking clinic will be held on August 10, and attendees can pay $120 in advance or $178 on the day of the clinic. Jul. 30 Great Adventures receives cash of $8,480 in advance from 70 kayakers for the upcoming kayak clinic. Aug. 1 Great Adventures obtains a $49,690 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 $13,200 cash. Aug. 10 Twenty additional kayakers pay $3,480 ($170 each), in addition to the $8,480 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 $10,800 cash. Aug. 24 Office supplies of $1,500 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 $4,440 ($370 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 $19,480 cash. Dec 1 Tony decides to hold the company's first adventure race on December 15. Four-person teams 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 $560. Dec. 5 To help organize and promote the race, Tony hires his college roommate, Victor. Victor will be paid $40 in salary for each team that competes in the race. His salary will be paid after the race. Dec. 8 The company pays $2,000 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 $2,700 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 $22,488 cash from a total of forty teams, and the race is held. Dec. 16 The company pays Victor's salary of $1,680. Dec. 31 The company pays a dividend of $3,180 ($1,550 to Tony and $1,550 to Suzie). Dec. 31 Using his personal money, Tony purchases a diamond ring for $4,900. 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 $6.380. 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 $1.500 of office supplies purchased on July 4. $340 remains. e. Interest expense on the $49.000 loan obtained from the city council on August 1 should be recorded. f. Of the $2,700 of racing supplies purchased on December 12. $190 remains. 9. Suzie calculates that the company owes $14.600 in income taxes. Choose the appropriate accounts to be reported on the income statement. Select the then populate the balances in those accounts from the trial balance. Post-closing GREAT ADVENTURES, Inc. Income Statement December 31, 2021 -22,400 22.400 (8,400) S -8.400 Revenues: Service Revenue (Clinic) Service Revenue (Racing) Deferred Revenue Total Revenues Expenses: Advertising Expense Legal Fees Expense Miscellaneous Expense Salaries Expense Depreciation Expense Insurance Expense Rent Expense Supplies Expense (Office) Supplies Expense (Racing) Interest Expense Income Tax Expense 0 Total Expense Net Income S -8.400 g. Suzie calculates that the company owes $14.600 in income taxes. General General Income Statement of Requirement Journal Ledger Trial Balance Statement Balance Sheet SE Using the dropdown buttons, select the item that accurately describes the values that either increase or decrease the balance indicated. Post-closing GREAT ADVENTURES, Inc. Statement of Stockholders' Equity For the year ended December 31, 2021 Retained Total Common Stock Earnings Stockholders Equity Balance at December 1 Add: Issuance Common Stock 30.000 30,000 Add: Net Income for 2021 (8,400) (8.400) Less: Dividends Balance at December 31 S 30.000 48.765 S 21,600 Requirement General Journal General Ledger Trial Balance Income Statement Statement of SE Balance Sheet The balance sheet is the accounting equation: Assets = Liabilities + Equity. Each asset and liability account is reported separately on the balance sheet. Post-closing GREAT ADVENTURES, Inc. Balance Sheet December 31, 2021 Assets Liabilities S S Current Assets Cash Prepaid Insurance Prepaid Rent Supplies (Office) Supplies (Racing) 115.120 2. 160 2.960 340 Current Liabilities: Accounts Payable Interest Payable Income Taxes Payable EEE 2.700 1.225 14.800 190 Total Current Liabilities 18.525 120.770 18.525 Total Current Assets Long-term assets: Equipment (Bikes) Equipment (Kayaks) Accumulated Depreciation Total Liabilities Stockholders' Equity Common Stock Retained Earnings 30.000 40,365 18.700 13.200 (6,380) 0 146,290 Total Stockholders' Equity Total Liabilities and Stockholders' Equity 70.365 88.890 Total Assets S S
