journal entry

1-Sell $10,000 of common stock to Suzie.

2-Sell $10,000 of common stock to Tony.

3-Purchase a one-year insurance policy for $4,800 ($400 per month) to cover injuries to participants during outdoor clinics.

4-Pay legal fees of $1,500 associated with incorporation.

5-Purchase office supplies of $1,800 on account.

6-Pay $300 to a local newspaper for advertising of $300 to appear immediately for an upcoming mountain biking clinic to be held on July 15. Attendees will be charged $50 the day of the clinic.

7-Purchase 10 mountain bikes, paying $12,000 cash.

8-On the day of the clinic, Great Adventures receives cash of $2,000 from 40 bikers. Tony and Suzie conduct the mountain biking clinic.

9-Because of the success of the first mountain biking clinic, Tony and Suzie hold another mountain biking clinic, and the company receives $2,300.

10-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.

11-Great Adventures receives cash of $4,000 in advance from 40 kayakers for the upcoming kayak clinic.

12-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.

13-The company purchases 14 kayaks, paying $28,000 cash.

14-Tony and Suzie conduct the first kayak clinic. In addition to the $4,000 that was received in advance from kayakers on July 30, the company receives additional cash of $3,000 from 20 new kayakers on the day of the clinic.

15-Tony and Suzie conduct a second kayak clinic, and the company receives $10,500 cash.

16-Office supplies of $1,800 purchased on July 4 are paid in full.

17-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.

18-Tony conducts a rock-climbing clinic. The company receives $13,200 cash.

19-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.

20-Tony and Suzie decide to hold the companys 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 $500.

21-To help organize and promote the race, Tony hires his college roommate, Victor. Victor will be paid $50 in salary for each team that competes in the race. His salary will be paid after the race.

22-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.

23-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 participants, and field markers to prepare the racecourse.

24-The company receives $20,000 cash from a total of forty teams, and the race is held.

25-The company pays Victors salary of $2,000.

26-The company pays a dividend of $4,000 ($2,000 to Tony and $2,000 to Suzie).

27-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!

28-Record the adjusting entry for depreciation. Depreciation of the mountain bikes purchased on July 8 and kayaks purchased on August 4 totals $8,000.

29-Record the adjusting entry for insurance. Six months of the one-year insurance policy purchased on July 1 has expired.

30-Record the adjusting entry for rent. Four months of the one-year rental agreement purchased on September 1 has expired.

31-Record the adjusting entry for office supplies. Of the $1,800 of office supplies purchased on July 4, $300 remains.

32-Record the adjusting entry for interest. Interest expense on the $30,000 loan obtained from the city council on August 1 should be recorded.

33-Record the adjusting entry for racing supplies. Of the $2,800 of racing supplies purchased on December 12, $200 remains.

34-Record the adjusting entry for income taxes. Suzie calculates that the company owes $14,000 in income taxes.

35-Record the entry to close the revenue accounts.

36-Record the entry to close the expense accounts.

37-Record the entry to close the dividends account.

1d Suzie graduate from college in May 2024 and begin developing their new business. They begin by offering clinics for basic r activities such as mountain biking or kayaking. Upon developing a customer base, they'll hold their first adventure races. races will involve four-person teams that race from one checkpoint to the next using a combination of kayaking, mountain orienteering, and trail running. In the long run, they plan to sell outdoor gear and develop a ropes course for outdoor iasts. 1, 2024, Tony and Suzie organize their new company as a corporation, Great Adventures Incorporated The articles of ration state that the corporation will sell 32,000 shares of common stock for $1 each. Each share of stock represents a unit of hip. Tony and Suzie will act as co-presidents of the company. The following business activities occur during July for Great ures