Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Lab 5 Accounting Cyce Project 1 Required information Great Adventures Problem AP2-1 The following information applies to the questions displayed below Tony and Suzie graduate

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Lab 5 Accounting Cyce Project 1 Required information Great Adventures Problem AP2-1 The following information applies to the questions displayed below Tony and Suzie graduate from college in May 2021 and begin developing their new business. They begin by offering clinics for basic outdoor activities such as mountain biking or kayaking. Upon developing a customer base, they hold their first adventure races. These races will involve four person teams that race from one checkpoint to the next using a combination of kayaking, mountain biking, orienteering and trail running. In the long run, they plan to sell outdoor gear and develop a ropes course for outdoor enthusiasts. On July 1, 2021, Tony and Suzie organize their new company as a corporation, Great Adventures Inc. The articles of incorporation state that the corporation will sell 28,000 shares of common stock for $1 each. Each share of stock represents a unit of ownership. Tony and Suzie will act as co-presidents of the company. The following business activities occur during July for Great Adventures. Jul. I sell $14,000 of common stock to Susie. Jul. I sell $14,000 of stock to Tony. Jul. I Purchase a one-year insurance policy for $3,640 (6320 per month) to cover injuries to participants during outdoor clinics. Jul. 2 Pay legal fees of $1,400 associated with incorporation. Jul. 4 Purchase office supplies of $1,000 on account. Jul. 7 Pay $250 to a local newspaper for advertising to appear immediately for an upcoming mountain biking elinie to be held on July 15. Attendees will be charged 540 the day of the clinic. Jul. Purchase 10 mountain bikes, paying $11,400 cash. Jul. 15 On the day of the clinic, Great Adventures receives cash of $2.400 trs 60 bikers. Tony conducts the mountain biking alinie. Jul. 22 Because of the success of the first mountain biking alinie, Tony holds another mountain biking elinie and the company receives $2.000. Jul. 24 Pay $800 to a local radio station for advertising to appear immediately. A kayaking cline will be held on August 10, nd attendees can pay $140 in advance or $190 on the day of the elinie. Jul. 30 Great Adventures rebaives cash of $11,200 in advance from 80 kayakers for the upcoming Kayak elinie. Great Adventures Problem AP2-1 Part 1 Required: 1. Record each transaction in July (if no entry is required for a transaction/event, select "No journal entry required in the first account field.) View transaction list W e cause of the succe of the first mountain biking alinie, Tony holds anot! and the company rece $2,800. Jul. 24 Pay $800 to a local dio station for advertising to appear immediately. held on August 10, and attendees can pay $140 in advance or $190 on the day Jul. 30 Great Adventures receives cash of $11,200 in advance from 80 kayakers for ti Great Adventures Problem AP2-1 Part 1 Required: 1. Record each transaction in July. (If no entry is required account field.) a transaction/event, select "No jour View transaction list Journal entry worksheet Sell $14,000 of common stock to Suzie. Note: Enter debits before credits. General Journal Debit Credit Date July 01

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions