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July 1 Sell $15,000 of common stock to Suzie. July 1 Sell $15,000 of common stock to Tony. July 1 Purchase a one-year insurance policy
July 1 | Sell $15,000 of common stock to Suzie. |
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July 1 | Sell $15,000 of common stock to Tony. |
July 1 | Purchase a one-year insurance policy for $3,840 ($320 per month) to cover injuries to participants during outdoor clinics. |
July 2 | Pay legal fees of $1,200 associated with incorporation. |
July 4 | Purchase office supplies of $1,600 on account. |
July 7 | Pay $370 to a local newspaper for advertising to appear immediately for an upcoming mountain biking clinic to be held on July 15. Attendees will be charged $60 the day of the clinic. |
July 8 | Purchase 10 mountain bikes, paying $11,200 cash. |
July 15 | On the day of the clinic, Great Adventures receives cash of $3,600 in total from 60 bikers. Tony and Suzie conducts the mountain biking clinic. |
July 22 | Because of the success of the first mountain biking clinic, Tony and Suzie holds another mountain biking clinic and the company receives $3,950. |
July 24 | Pay $850 to a local radio station for advertising to appear immediately. A kayaking clinic will be held on August 10, and attendees can pay $140 in advance or $190 on the day of the clinic. |
July 30 | Great Adventures receives total cash of $9,800 in advance from 70 kayakers for the upcoming kayak clinic. |
The following transactions occur over the remainder of 2024. | |
August 1 | Great Adventures obtains a $38,000 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. |
August 4 | The company purchases 14 kayaks, paying $13,200 cash. |
August 10 | Tony and Suzie conduct the first kayak clinic. In addition to the $9,800 that was received in advance from kayakers on July 30, the company receives additional cash of $3,800 from twenty new kayakers on the day of the clinic. |
August 17 | Tony and Suzie conducts a second kayak clinic, and the company receives $12,000 cash. |
August 24 | Office supplies of $1,600 purchased on July 4 are paid in full. |
September 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 ($330 per month) in advance. |
September 21 | Tony and Suzie conduct a rock-climbing clinic. The company receives $15,200 cash. |
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 $18,300 cash. |
December 1 | 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 $590. |
December 5 | 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. |
December 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 miscellaneous expense. |
December 12 | The company purchases racing supplies for $2,500 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. |
December 15 | The company receives $23,600 cash from a total of forty teams, and the race is held. |
December 16 | The company pays Victors salary of $2,400. |
December 31 | The company pays a dividend of $4,200 ($2,100 to Tony and $2,100 to Suzie). |
December 31 | Using his personal money, Tony purchases a diamond ring for $4,700. 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, 2024.
- Depreciation of the mountain bikes purchased on July 8 and kayaks purchased on August 4 totals $7,800.
- 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 $1,600 of office supplies purchased on July 4, $220 remains.
- Interest expense on the $38,000 loan obtained from the city council on August 1 should be recorded.
- Of the $2,500 of racing supplies purchased on December 12, $290 remains.
- Suzie calculates that the company owes $13,100 in income taxes.
create a balance sheet.
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