Jul. 1 Sell $11,500 of common stock to Suzie. Jul. 1 Sell $11,500 of common stock to Tony. Jul. Purchase a one-year insurance policy for $4,560 ($380 per month) to cover injuries to participants during outdoor clinics. Jul. 2 Pay legal fees of $1,900 associated with incorporation Jul. 4 Purchase office supplies of $1,400 on account. Jul. 7 Pay for advertising of $250 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 $13,700 cash. Jul 15 on the day of the clinic, Great Adventures receives eash of $4,900 from 70 bikers. Tony conducts the mountain biking clinic. Jul. 22 Decause of the success of the first mountain biking alinio, Tony holds another mountain biking olinio and the company receives $5,350. Jul. 24 Pay $680 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 $170 on the day of the clinic. Jul. 30 Great Adventures receives cash of $6,000 in advance from 50 kayakers for the upcoming kayak clinic. Aug. 1 Great Adventures obtains a $37,000 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 61 annual interest is due each year on July 31. Aug. The company purchasen 14 kayake, paying $17,600 canh. Aug. 10 Twenty additional kayakers pay $3,400 ($170 each). In addition to the $6,000 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 $10,700 cash Aug, 24 office supplies of $1,400 purchased on July 4 are paid in full Sep. 1 To provide better storage of mountain bikes and kayak when not in use, the company rents a storage shed for one year, paying $4,080 ($340 per month) in advance. Sep. 21 Tony conducta a rock-climbing clinic. The company receives $14,600 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 $18,300 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 $680. 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. PART 1 Onn Akan fr that he had TAR 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 5680. 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 $1,900 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 participants, and field markers to prepare the racecourse. Dec. 15 The company receives $27,200 cash from a total of forty teams, and the race is held. Dec. 16 The company pays Vietor's salary of $1,600. Dec. 31 The company pays a dividend of $4,900 ($2,450 to Tony and $2,450 to Suzie). Dec. 31 Using his personal money, Tony purchases a diamond ring for $4,200. Tony surprise Suzie by proponing that they got married. Suzie accepts and they got 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 $8,100, 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 $1,400 of office supplies purchased on July 4, $340 remains. e. Interest expense on the $37,000 loan obtained from the city council on August 1 should be recorded. f. Of the $2,800 of racing supplies purchased on December 12, $300 remains g. Suzie calculates that the company owes $14,200 in income taxes. Great Adventures Problem AP3-1 Part 4 6 4. Prepare an adjusted trial balance as of December 31, 2021. Credit es 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) -wy Required information 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 + 1,900 $ 1,900 $ 0