Jul. 1 Sell 516,eee of common stock to Suzie. Jul. 1 Sell $16,eee of common stock to Tony. Jul. 1 Purchase a one-year insurance policy for $4,440 ($370 per month) to cover injuries to participants during outdoor clinics Jul. 2 Pay legal fees of $1,800 associated with incorporation. Jul. 4 Purchase office supplies of $1,700 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 $50 on the day of the clinic. Jul. 8 Purchase 1e mountain bikes, paying $17,100 cash. Jul. 15 On the day of the clinic, Great Adventures receives cash of $4,000 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 $4,400. Jul. 24 Pay $720 to a local radio station for advertising to appear immediately. A kayaking clinic will be held on August 10, and attendees can pay $15e in advance or $200 on the day of the clinic Jul. 30 Great Adventures receives cash of $9, een in advance from 60 kayakers for the upcoming kayak clinic. Aug. 1 Great Adventures obtains a $31,000 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. Aug. 4 The company purchases 14 kayaks, paying $18,200 cash. Aug. 1e Twenty additional kayakers pay $4,($200 each), in addition to the $9,000 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 $11,700 cash. Aug. 24 Office Supplies of $1,700 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 $3,960 (5330 per month) in advance. Sep. 21 Tony conducts a rock-climbing clinic. The company receives $15,200 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 $19,100 cash. Dec. 1 Tony decides to hold the company's first adventure race on December 15. Four person teans 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 $50 in salary for each team that competes in the race. His salary will be paid after the race. Dec. 8 The company pays $1,800 to purchase a permit from a state park where the race will be held. The amount is recorded as a siscellaneous expense. Dec. 12 The company purchases racing supplies for $2,100 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 Victor's salary of $2,000. Dec. 31 The company pays a dividend of $3,100 ($1,550 to Tony and $1,550 to Suzie). Dec. 31 Using his personal money, Tony purchases a diamond ring for $4,600. 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 $7000. 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 $1,700 of office supplies purchased on July 4, $320 remains. e. Interest expense on the $31,000 loan obtained from the city council on August 1 should be recorded. 1. Of the $2,100 of racing supplies purchased on December 12, $120 remains. Sure calculates that the company owes $13.800 in income taxes. 3. Post transactions from August 1 through December 31 and adjusting entries on December 31 to T-accounts. Cash Prepaid Insurance Beg. Bal. Beg Bal [ 2.220 Dec 31 25.090 31.000 4.000 11,7001 15.2001 19.100 27.200 End Bal 18.200 Aug 4 1.700 Aug 24 3.960 Sep. 1 1.800 Dec 8 2.000 Dec 16 3.100 Dec 31 2220 Sep. 21 End. Bal 102.530 Prepaid Rent Supplies (Office) Beg Bal Beg Bal. 'Sep 1 3.960 1,320 Dec 31 1,380 Dec. 31 End. Bal 2.640 End. Bal. Supplies (Racing) Equipment (Bikes) Beg. Bal. Beg Bal 1.980 Dec 31 End Bal 1.980 Equipment (Kayaks) Accumulated Depreciation Bog Bal Beg Bal Aug 4 18.2001 .000 Dec 31 End. Bal 18.200 End. Bal. Accounts Payable Deferred Revenue Beg Bal Beg Bal. Aug 24 1.7001 9.000 Aug. 10 e here to search of 9 me End. Bal 3.100 15,200 Sep. 21 19.100 Oct. 17 End. Bal 67,400 Service Revenue (Racing) Advertising Expense Beg. Bal. Beg. Bal. 27.200 Dec. 15 End. Bal. 27.200 End. Bal. Legal Fees Expense Miscellaneous Expense Beg. Bal. Beg Bali Dec. 8 1,800 End. Bal. End, Bal 1,800 Salaries Expense Depreciation Expense Beg. Bal Dec. 16 Beg Bal. Dec. 31 2,000 7,000 End. Bal. 2.000 End. Bal. 7.000 Beg. Bal. Dec. 16 Beg. Bal. Dec. 31 7,000 2 .000 End. Bal. 2,000 End. Bal. 7,000 Insurance Expense Rent Expense Beg. Bal. Dec. 31 Beg. Bal. Dec. 31 2.220 1,320 2.220 End. Bal. End. Bal. 1,320 Supplies Expense (Office) Supplies Expense (Racing) Beg. Bal. Dec. 31 Beg. Bal. Dec 31 1,380 1,980 1,380 End. Bal. 1.980 End. Bal. Interest Expense Income Tax Expense Beg. Bal. Beg. Bal. Dec 31 Dec. 31 13,800 End. Bal. 775 End. Bal. 13.800 4. Prepare an adjusted trial balance as of December 31, 2021. 1.000 GREAT ADVENTURES, Inc. Adjusted Trial Balance December 31, 2021 Accounts Debit Cash $ 102,530 Prepaid Insurance 2,220 Prepaid Rent 2.640 Supplies (Office) 1,380 Supplies (Racing) 1.980 Equipment (Bikes) Equipment (Kayaks) 18,200 Accumulated Depreciation Accounts Payable Income Tax Payable Interest Payable Notes Payable Common Stock Dividends 3.100 Service Revenue (Clinic) Service Revenue (Racing) Advertising Expense Depreciation Expense 7,000 Income Tax Expense 13,800 Insurance Expense 2.220 Interest Expense 7757 Legal Fees Expense Miscellaneous Expense 1.800 Rent Expense 1,320 Salries Expense 2.000 Supplies Expense (Office) 1.380 Supplies Expense (Racing) 1.980 Totals 164 325 31,000 32.000 67,400 27.200 $ 180.875