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 $21,000$ 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.

July $1$

Sell $$10,500$ of common stock to Suzie.

July $1$

Sell $$10,500$ of common stock to Tony.

July $1$

Purchase a one$-$year insurance policy for $$5,280($$$440$ per month$)$ to cover injuries to participants during outdoor clinics.

July $2$

Pay legal fees of $$2,000$ associated with incorporation.

July $4$

Purchase office supplies of $$1,900$ on account.

July $7$

Pay $$250$ to a local newspaper for advertising to appear immediately for an upcoming mountain biking clinic to be held on July $15.$ Attendees will be charged $$40$ on the day of the clinic.

July $8$

Purchase $10$ mountain bikes, paying $$15,500$ cash.

July $15$

On the day of the clinic, Great Adventures receives cash of $$2,000$ in total from $50$ 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 $$2,550.$

July $24$

Pay $$810$ to a local radio station for advertising to appear immediately. A kayaking clinic will be held on August $10,$ and attendees can pay $$120$ in advance or $$170$ on the day of the clinic.

July $30$

Great Adventures receives total cash of $$9,600$ in advance from $80$ 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 $$14,300$ cash.

August $10$

Tony and Suzie conduct the first kayak clinic. In addition to the $$9,600$ that was received in advance from kayakers on July $30,$ the company receives additional cash of $$3,400$ from twenty new kayakers on the day of the clinic.

August $17$

Tony and Suzie conducts a second kayak clinic, and the company receives $$10,700$ cash.

August $24$

Office supplies of $$1,900$ 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 $$4,680($$$390$ per month$)$ in advance.

September $21$

Tony and Suzie conduct a rock$-$climbing clinic. The company receives $$14,800$ 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 company$$s first adventure race on December $15.$ Four$-$person teams will race from checkpoint to checkpoint using a combination of mountain biking, kayaking, orienteering, trail running, and rock$-$climbing skills. The first team in each category to complete all checkpoints in order wins. The entry fee for each team is $$580.$

December $5$

To help organize and promote the race, Tony hires his college roommate, Victor. Victor will be paid $$50$ in salary for each team that competes in the race. His salary will be paid after the race.

December $8$

The company pays $$1,200$ 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 $$2,700$ 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 $$23,200$ cash from a total of forty teams, and the race is held.

December $16$

The company pays Victor$$s salary of $$2,000.$

December $31$

The company pays a dividend of $$3,800($$$1,900$ to Tony and $$1,900$ to Suzie$).$

December $31$

Using his personal money, Tony purchases a diamond ring for $$3,700.$ 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 $31,2024.$

$1.$ Depreciation of the mountain bikes purchased on July $8$ and kayaks purchased on August $4$ totals $$5,960.$

$2.$ Six months$$ of the one$-$year insurance policy purchased on July $1$ has expired.

$3.$ Four months of the one$-$year rental agreement purchased on September $1$ has expired.

$4.$ Of the $$1,900$ of office supplies purchased on July $4,$ $$330$ remains.

$5.$ Interest expense on the $$38,000$ loan obtained from the city council on August $1$ should be recorded.

$6.$ Of the $$2,700$ of racing supplies purchased on December $12,$ $$230$ remains.

$7.$ Suzie calculates that the company owes $$14,300$ in income