Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On July 1 , 2 0 2 4 , Tony and Suzie organize their new company as a corporation, Great Adventures Incorporated The articles of

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 36,000 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.
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 $8,200.
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 $1,400 of office supplies purchased on July 4,$300 remains.
e. Interest expense on the $49,000 loan obtained from the city council on August 1 should be recorded.
f. Of the $2,700 of racing supplies purchased on December 12,$200 remains.
g. Suzie calculates that the company owes $14,000 in income taxes.
Prepare an adjusted trial balance as of December 31,2024. Required information
The questions auto copied all except for the second and last one. Help would be very much appreciated!
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

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

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

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

Get Started

Recommended Textbook for

Financial Accounting

Authors: Jane L. Reimers

1st Edition

0131492012, 978-0131492011

More Books

Students also viewed these Accounting questions