Journal entry worksheet Note: Enter debits before credits

The following information relates to year-end adjusting entries as of December 31, 2024.

Depreciation of the mountain bikes purchased on July 8 and kayaks purchased on August 4 totals $6,820.

Six months of the one-year insurance policy purchased on July 1 has expired.

Four months of the one-year rental agreement purchased on September 1 has expired.

Of the $1,400 of office supplies purchased on July 4, $250 remains.

Interest expense on the $41,000 loan obtained from the city council on August 1 should be recorded.

Of the $3,000 of racing supplies purchased on December 12, $220 remains.

Suzie calculates that the company owes $13,600 in income taxes.

1-Augst 17: Tony and Suzie conducts a second kayak clinic, and the company receives $11,400 cash.

2-Augst 24: Office supplies of $1,400 purchased on July 4 are paid in full.

3-September 01 : To provide better storage of mountain bikes and kayaks when not in use, the company rents a storage shed for one year, paying $3,840 ($320 per month) in advance.

4-September 21 : Tony and Suzie conduct a rock-climbing clinic. The company receives $14,900 cash.

5-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 $18,500 cash.

6-August 17: Tony and Suzie conducts a second kayak clinic, and the company receives $11,400 cash.

7-August 24: Office supplies of $1,400 purchased on July 4 are paid in full.

8-September 01: To provide better storage of mountain bikes and kayaks when not in use, the company rents a storage shed for one year, paying $3,840 ($320 per month) in advance.

9-September 21 :Tony and Suzie conduct a rock-climbing clinic. The company receives $14,900 cash.

10-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 $18,500 cash.

11-August 17 : Tony and Suzie conducts a second kayak clinic, and the company receives $11,400 cash.

12-August 24: Office supplies of $1,400 purchased on July 4 are paid in full.

13-September 01 : To provide better storage of mountain bikes and kayaks when not in use, the company rents a storage shed for one year, paying $3,840 ($320 per month) in advance.

14-September 21 : Tony and Suzie conduct a rock-climbing clinic. The company receives $14,900 cash.

15-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 $18,500 cash.

16-December 01: 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 $650.

17-December 05 : To help organize and promote the race, Tony hires his college roommate, Victor. Victor will be paid $60 in salary for each team that competes in the race. His salary will be paid after the race.

18-December 08 : The company pays $1,500 to purchase a permit from a state park where the race will be held. The amount is recorded as a miscellaneous expense.

19-December 12 : The company purchases racing supplies for $3,000 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.

20-December 15 : The company receives $26,000 cash from a total of forty teams, and the race is held.

21-December 16: The company pays Victors salary of $2,400.

22-December 31: The company pays a dividend of $4,600 ($2,300 to Tony and $2,300 to Suzie).

23-December 31: Using his personal money, Tony purchases a diamond ring for $3,900. Tony surprises Suzie by proposing that they get married. Suzie accepts and they get married.

24-December 31:Record the adjusting entry for depreciation. Depreciation of the mountain bikes purchased on July 8 and kayaks purchased on August 4 totals $6,820.

25-December 31:Record the adjusting entry for insurance. Six months of the one-year insurance policy purchased on July 1 has expired.

26-December 31:Record the adjusting entry for rent. Four months of the one-year rental agreement purchased on September 1 has expired.

27-December 31:Record the adjusting entry for office supplies. Of the Of the $1,400 of office supplies purchased on July 4, $250 remains.

28-December 31:Record the adjusting entry for interest. Interest expense on the $41,000 loan obtained from the city council on August 1 should be recorded.

29-December 31:Record the adjusting entry for interest. Interest expense on the $41,000 loan obtained from the city council on August 1 should be recorded.

30-December 31:Record the adjusting entry for racing supplies. Of the $3,000 of racing supplies purchased on December 12, $220 remains.

31-December 31:Record the adjusting entry for income taxes. Suzie calculates that the company owes $13,600 in income taxes.

32-December 31:Record the entry to close the revenue accounts.

33-December 31:Record the entry to close the expense accounts.

34-December 31:Record the entry to close the dividends account.