Jul 1 Sell $13,000 of common stock to Suzie. Jul 1 Sell $13,000 of common stock to Tony. Jul. 1 Purchase a one-year insurance policy for $4,800 ($400 per month) to cover injuries to participants during outdoor clinics. Jul. 2 Pay legal fees of $1,500 associated with incorporation. Jul. 4 Purchase office supplies of $1,600 on account. Jul. 7 Pay for advertising of $330 to a local newspaper for an upcoming mountain biking clinic to be held on July 15 Attendees will be charged $60 on the day of the clinic. Jul. 8 Purchase 10 mountain bikes, paying $16,300 cash. Jul. 15 On the day of the clinic, Great Adventures receives cash of $4,800 from 80 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 $5,100. Jul. 24 Pay $920 to a local radio station for advertising to appear immediately. A kayaking clinic will be held on August 10, and attendees can pay $110 in advance or $160 on the day of the clinic. Jul. 30 Great Adventures receives cash of $7,780 in advance from 70 kayakers for the upcoming kayak clinic, Aug 1 Great Adventures obtains a $30,000 low-interest loan for the company from the city council, which has recent1 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 $18,200 cash. Aug. 10 Twenty additional kayakers pay $3,200 ($160 each), in addition to the $7,700 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 $11,200 cash. Aug. 24 Office supplies of $1,600 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 $3,120 ($260 per month) in advance. Sep. 21 Tony conducts a rock-climbing clinic. The company receives $13,300 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 $19,800 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 fe for each team is $520. Dec. 5 To help organize and promote the race, Tony hires his college roommate, Victor. Victor will be paid $30 in salary for each team that competes in the race. His salary will be paid after the race. Dec. 8 The company pays $1,600 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 CD of a Next 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 $20,800 cash from a total of forty teams, and the race is held. Dec. 16 The company pays Victor's salary of $1,200. Dec. 31 The company pays a dividend of $4,100 ($2,050 to Tony and $2,050 to Susie). Dec. 31 Using his personal money, Tony purchases a diamond ring for $3,600. Tony surprises Suzie by proposint 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 $8.700. 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 $1,600 of office supplies purchased on July 4, $230 remains, e. Interest expense on the $30,000 loan obtained from the city council on August 1 should be recorded. f. Of the $2.700 of racing supplies purchased on December 12. $230 remains. g. Suzie calculates that the company owes $14,200 in income taxes. 4. Prepare an adjusted trial balance as of December 31, 2021. Credit GREAT ADVENTURES, Inc. Adjusted Trial Balance December 31, 2021 Accounts Debit Cash $ 26,000 Prepaid Insurance Prepaid Rent Supplies (Office) Supplies (Racing) Equipment (Bikes) 16,300 Equipment (Kayaks) Accumulated Depreciation Accounts Payable 1,600 Income Tax Payable Interest Payable Notes Payable Common Stock Dividends Service Revenue (Clinic) 5.100 Service Revenue (Racing) 26.000 1.250 4,800 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 1,500 1,600 $ 58,150 $ 26.000 Income Statement December 31, 2021 Revenues Total Revenues Expenses $ Total Expense 0 $ 0 es GREAT ADVENTURES, Inc. Statement of Stockholders' Equity For the Period Ended December 31, 2021 Common Stock Retained Earnings Total Stockholders Equity GREAT ADVENTURES, Inc. Balance Sheet December 31, 2021 Assets Liabilities Current Assets Current Liabilities Total Current Liabilities 0 Total Current Assets Long-term assets Total Liabilities Stockholders' Equity 0 Total Assets Total Stockholders' Equity Total Liabilities and Stockholders Equity S 0 5 O Stmt of Stockholders Equity t 6 of 8 Journal entry worksheet ts Record the closing of revenue accounts. Book ASK Note: Enter debits before credits. Ferences General Journal Date Dec 31, 2021 Debit Credit D. Record entry Clear entry View general journal Journal entry worksheet Record the closing of expense accounts. Note: Enter debits before credits. General Journal Debit Date Dec 31 2021 Credit Journal entry worksheet 1 2 3 > Record the closing of dividends account. Note: Enter debits before credits. General Journal Debit Credit Date Dec 31, 2021 Record entry Clear entry View general journal Great Adventures Problem AP3-1 Part 7 7. Post the closing entries of retained earnings to the T-account. Retained Earnings Beg Bal. ces End. Bal