Need help on closing these 3 accounts!
Record the entry to close the expense accounts. Note: Enter debits before credits. Record the entry to close the dividends account. Note: Enter debits before credits. Tony and Suzie graduate from college in May 2024 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'll 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, 2024, Tony and Suzie organize their new company as a corporation, Great Adventures Incorporated The articles of incorporation state that the corporation will sell 38,000 shares of common stock for $1 each. Each share of stock represents a unit of ownership. TPny and Suzie will act as co-presidents of the company. The following business activities occur during July for Great Adventures: July 1 Sell $19,000 of common stock to Suzie. July 1 Sell $19,000 of comnon stock to Tony. Juty 1 Purchase a one-year insurance policy for $4,680 ( $390 per month) to cover injuries to participants during Juty 2 Pay legal fees of $1,400 associated with incorporation. Juty 4 Purchase offic supplies of $2,000 on account. Juty 7 Pay $280 to a local newspaper for advertising to appear immediately for an upcoming nountain biking clinic to be held on July 15 . Attendees will be charged $50 on the day of the clinic. July 8 Purchase 10 mountain bikes, paying $15,900 cash. July 15 On the day of the clinic, Great Adventures receives cash of $3,000 fron 60 bikers. Tony and Suzie conducts July 22 Because of the success of the first mountain biking clinic, Tony and Suzie holds another mountain biking clinic, and the company receives $3,550. Juty 24 July 30 August 1 August 4 Pay $860 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. Great Adventures receives cash of $9,800 in advance from 70 kayakers for the upcoming kayak clinic. The following transactions occur over the remainder of 2024. Great Adventures obtains a $41,600 low-interest loan for the company fron the city council, which has recently passed an initiative encouraging business development related to outdoor activities. The loan is due in three years, and 64 annual interest is due each year on July 31. August 10 The conpany purchases 14 kayaks, paying $23,800 cash. Tony and Suzie conduct the first kayak clinic. In addition to the $9,800 that was received in advance from kayakers on Juty 30 , the company receives additionat cash of $3,800 fron 20 new kayakers on the day of the Record the entry to close the revenue accounts. Note: Enter debits before credits. The following information relates to year-end adjusting entries as of December 31, 2024. a. Depreciation of the mountain bikes purchased on July 8 and kayaks purchased on August 4 totals $7,940. b. Six month's' 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 $2,000 of office supplies purchased on July 4,$340 remains. e. Interest expense on the $41,000 loan obtained from the city council on August 1 should be recorded. f. Of the $2,300 of racing supplies purchased on December 12,$270 remains. g. Suzie calculates that the company owes $14,400 in income taxes. recently passed an initiative encouraging business development related to outdoor activities. The loan is due in three years, and 6s annual interest is due each year on July 31. The company purchases 14 kayaks, paying $23,800 cash. 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 20 new kayakers on the day of the clinic. Tony and Suzie conducts a second kayak clinic, and the company receives $11,500 cash. office supplies of $2,000 purchased on July 4 are paid in full. To provide better storage of mountain bikes and kayaks when not in use, the company rents a storage shed for one year, paying $4,320 ( $360 per nonth) in advance. tember 21 Tony and Suzie conduct a rock-climbing clinic. The company receives $13,600 cash. ober 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 conpany receives $18,100 cash. ember 1 Tony and Suzie decide to hold the company's first adventure race on Decenber 15 . Four-person teans will race fron checkpoint to checkpoint using a conbination of mountain biking, kayaking, orienteering, trail running, and rock-climbing skills. The first tean in each category to complete all checkpoints in order wins. The entry fee for each tean is $590. To help organize and promote the race, Tony hires his college roomate, Victor. Victor will be paid $60 in salary for each team that competes in the race. His salary will be paid after the race. The company pays $1,000 to purchase a permit from a state park where the race will be held. The anount is recorded as a miscellaneous expense. ember 12 The company purchases racing supplies for $2,300 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. amber 15 The company receives $23,600 cash from a total of forty teans, and the race is held. enber 16 The company pays Victor's salary of $2,400. ember 31 The company pays a dividend of $4,800($2,400 to Tony and $2,460 to $ uzie). mber 31 Using his personal money. Tony purchases a diamond ring for $4,708. Tony surprises Suzie by proposing that they get married. Suzie accepts and they get married
