Great Adventures N1 Tony and Sure graduate from college in by offering clinics for basic ondor customer base, they'Whold their first race from one checkpoint to the next trail n enth se, th se o me che "hold their n g. In the point to the song in May 2021 destin developing their new business. They begin activities such as mountain biking or kayaking. Upon developing a adventure rices. These moes will involve four person teams that using a combination of kayaking, mountain biking, orientering, and sell outdoor gear and develop a ropes course for outdoor ng run, they plan to sell outdoor gear and a On July 1.2021, Tony and Suzie organize The articles of incorporation state that the corp ch. Each corporation company. The following transactions So stock represents a unit of ownership. Tony and Suzie will anire their new company as a corporation, Great Adventures Inc. that the corporation will sell 27,000 shares of common stock for S1 ownership. Tony and Suzie will act as co-presidents of the rom July 1 through December 31. from July 1 throuen Jul 1 Sell $13.500 of common stock to Surie. Jull Sell $13.500 of common stock to Tony Jul. Purchase a one-year insurance policy to wanase a one-year insurance policy for $4.320 (5360 per month) to cover injuries to participants during outdoor clinics. Jul. 2 Pay legal foss of $1.300 associated with incorporation. Jul. 4 Purchase office supplies of $2,000 on account Jul. 7 Pay for advertising of $360 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 Jul. 15 Purchase 10 mountain bikes, paying $14,100 cash. On the day of the clinic, Great Adventures receives cash of $3,600 from 60 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 $3,900. To 24 Pay $780 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. Iul 30 Great Adventures receives cash of $8,400 in advance from 60 kayakers for the upcomine kayak clinic. Aug. 1 Great Adventures obtains a 542 $42.000 low-interest loan for the company from the city council. initiative encouraging business development related to outdoor three years, and 6% annual interest is due each year on July 31. Aug. 4 which has recently passed an init activities. The loan is due in the The company purchases 14 ka Twenty additional kayakers pays in advance on July 30, on the day Tony conducts a second kayak clinic, and th piny purchases 14 kavaks, paving $14,300 cash. Aug. 10 yakers pay $3.500 (5190 cach, in addition to the $8,400 that was paid 10, on the day of the clinic. Tony conducts the first kayak clinic. Aug. 17 a second kayak clinic, and the company receives $10,700 cash. Aug. 24 Omice supplies of $2,000 purchased on July 4 are paid in fun sep. To provide better storage of mountain bikes and kayaks of mountain bikes and kayaks when not in use, the company rents a storage shed for one year, pavine $2.520 (5210 per month) in advance Sep. 21 y conducts a rock-climbing clinic. The company receives $13,500 ca Oct. 17 Tony conducts an orienteering clinic. Participants practice y 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 $19,700 cash. Dec. 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 $500. Dec. 5 To help organize and promote the race, Tony hires his college roommate, Victor. Victor will be paid 570 in salary for each team that competes in the race. His salary will be paid after the race. Dec 8 The company pays $1,400 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 purchasing supplies for $2,200 on account due in 30 days. Supplies include trophies for the top-finis and drinks for participants, ar The company wishing teams in each category, promotional shirts, snack foods Dec. 15 Dec. 16 icipants and field markers to prepare the one pany receives $20.000 chfram a total of forty team from a total of forty teams, and the race is held The company pays Vistor's salary of $2.800 Dec. 31 The company pays a div as a dividend of 1.100 (SISSO to Tony and $1,550 to su Dec. 31 Using his personal money, Tom Purchases a diamond ring for $3,900. Tony surprises Suzie Proposing that they get married, Sue accepts and they get mame The following information relates to year-end adjusting enth end adjusting entries as of December 31, 2021. archased on July 8 and kayaks purchased on August 4 totals a Depreciation of the mountain bikes nurchased on July 8 and kaya $5,680 Six months of the one year insurance policy purchased on July 1 base c Four months of the one-year rental ansament purchased on September 1 has expired d. or the $2,000 of office supplies purchased on July 4, 8380 remains e Interest expense on the $42,000 loan obtained from the city council on August I should be recorded. f. Of the $2,200 of racing supplies purchased on December 12, 5300 remains. g. Suzie calculates that the company owes $13,200 in income taxes. Required: 1. Record transactions from July 1 to December 31. 2. Record adjusting journal entries for December 31, 2021. 3. Post all transactions to T-accounts. 4. Prepare an adjusted trial balance. 5. Prepare a balance sheet, income statement and statement of stockholders' equity 6. Prepare closing entries. 7. Post-closing entries to T-accounts. 8. Prepare a post-closing trial balance
