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 40.000 shares of common stock for $1 each Each share of stock represents a unit of ownership. Tony and Suzle will act as co-presidents of the company. The following transactions occur from July 1 through December 31 Jul ! Sell $20,000 of common stock to Surze. Jul 1 51 520,000 of connon stock to Tony. Jul. I Purchase one year in urance policy for $4.320 ($360 per month) to cover injuries to participants during outdoor clinics Jul. 3 Pay local fees of $1.900 associated with incorporation. Jul 4 Purchase office supplies of $1.700 on account. Jual 7 Pay for advertising of $200 to a local newspaper for an upcoming mountain bikine clinic to be held on July 16. Attendees will be charged $50 on the day of the clinic. Jul. 8 Purchase 10 nountain bike paying $17, 200 cash Jul 15 on the day of the clinic, Great Adventures receaven cash of $3.500 fron 70 bikers. Tony conducts the sountain bikin clinic Jul. 22 Secade of the ruccess of the first mountain biking clinic. Tony holds another mountain bikin clinic and the company receive 53.850. Jul. 24 Pay 5000 to a local radio station for advertisint to appear insediately. A kayaking cline will be held on August 10, and attendees can pay $140 in advance or $190 on the day of the clinic. Jul 30 Great Adventures received cath of $7.000 in advance from 50 karakert for the upcoming kayak clinic Sur 1 Geest Adventure obtain a $2.000 low-interest loan for the company from the city council, which has recently pated initiative encouraging business development related to outdoor activities. The loan is due in the youts, and annual interest is due each year on July 31. , 4 The company purchase 14 kayaks. paying $13. 200 cash. Aut 18 Twenty additional kayakers pay $3.300(190 each), in addation to the $7.000 that was paid in advance on July 30. on the day of the clinie, Tony conduct the farat kayak clinic ME 17 Tomy conduct a second kayak clinic. and the company receives $10.900 cash . 24 Office supplier of $1.700 purchased on July are paid in full Sep. i to provide better storage of mountain biket und kayaks when not in use the company tents a storage shed for one your paying 14.200 5350 per month) in advance. Sep. 21 Tony conducte rock-climbing clinse. The company receives $14.000 cash. Oct. 17 Toney conducts an orienteering clinic. Participante practice how to understand a topographical sup. read an aitinter. Comp. and orient through hewly wooded area. The company receives $19.700 cash Dec. 1 Touy decides to hold the company at adventure race on December 15. Four person to will race from checkpoint to checkpoint in combination of mountain bike kinakant, orienteering, trail running and rock-climbing skills. The first tes in each category to complete all checkpoint in order wint. The entry fee tot och te i 5670 Dec. 5 To help organize and promote the race. Tony hares his college coonnae. Victor Victor will be paid $50 an salary for each to that compete in the race is talary will be paid after the race Dec. The company DK11.700 to purchase a pornit from a state park where the race will be held. The mounts recorded ascellaneous expense Deo 12. The come purchases racine supplies for $2.800 on account due in 30 days. Supplies include trophies for the top-inchant test in each category, promotional harta.mack toode and drinkt for participante id field to prepare the recor Dec 15 The Company receives 126,800 cash tron total of forty teas and the race i held Dec. 16 The company Day Victory of $3.000. Dec 31 The cops pays a dividend of $3.400 (31.700 to Tony and 31. 700 to Susze) Dec.31 Uring his personal Tour purchase a diod run for $3.600. Tony purpose by proposing that they et married. Suscepts and they tot arried year print $4,200 $350 per month) an advance. Sep 21 Tory conduct a rock-climbing clinic. The company receives $14.000 cash Oct. 17 Tony conducts an orienteering clinic. Participants practice how to understand a topographical map, read an inter. 50 compass, and orient through heavily wooded areas. The company receives $19.700 cath Dee Tomy decides to hold the company' = first adventure race on December 15. Four person teams will race from checkpoint to checkpoint in a combination of Mountain bikin kayaking, orienteering, trail running, and rock-climbing skills. The first tean in each category to complete all checkpoints in order wins. The entry for for each teas at 3670. Dec 5 To help oranize and promote the race. Tomy hare bat college toonnate, Victor, Victor will be pad $50 in salary for each to that competes in the race. He salary will be paid after the race. 8 The compty Days $1.700 to purchase a pornit from a state park where the race will be held. The arount 15 Recorded cellaneous expense. Dec. 12 The company purchases racing rupplies for $2.800 on account due in 30 days. Supplies include trophies for the top-tanskine tenanan each category, promotional thatte mack foods and drank for participants, md field askers to prepare the account Dec. 15 The company receives $26.000 cash from a total of forty test and the race held. Dec 16 The company pays Victor's salary of $2.000. DetThe company prys dividend of 53.400 ($1.700 to Tony and 31. 700 to Suste) Dec. 1 Urzne his personal money, Tony purcharos a diamond ring for $3,000. Tony surprise Sutte by proposing that they cet artsed. Se accepts and they catharned! The following information relates to year-end adjusting entries as of December 31, 2021 a. Depreciation of the mountain bikes purchased on July 8 and kayaks purchased on August 4 totals $7.800 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 $1700 of office supplies purchased on July 4 $390 remains e Interest expense on the $32,000 loan obtained from the city council on August 1 should be recorded. for the 52.800 ot racing supplies purchased on December 12, 5150 remains Suzie calculates that the company owes $14.200 in income taxes 7. Post the closing entries of retained earnings to the T-account Retained Earnings Beg Bal (Dec 31 Dec 31 End Bal GREAT ADVENTURES, Inc. Post-closing Trial Balance December 31, 2021 Accounts Debit Credit Cash Prepaid Insurance Prepaid Rent Supplies (Office) Supplies (Racing) Equipment (Bikes) Equipment (Kayaks) Accumulated Depreciation Accounts Payable Income Tax Payable Interest Payable Notes Payable Common Stock Retained Earnings Dividends Service Revenue (Clinic) Service Revenue (Racing) Advertising Expense Depreciation Expense Income Tax Expense Insurance Expense Interest Expense Legal Fees Expense Miscellaneous Expense Rent Expense Saries Expande Supplies Expense (Office) Supplies Expense Racing) Total Calculation Adjusting entries No. Date Accounts Debit Credit 28 31-Dec Depreciation expense $ 7,800 Accumulated Depreciation $ 7,800 Depreciation on mountain bikes and kayaks 4320"6/12 29 31-Dec Insurance expense $ 2,160 Prepaid Insurance Six months' insurance expired $ 2,160 $ 1,400 4200*4/12 30 31-Dec Rent expense Prepaid Rent Four months' rent expired $ 1.400 $ 1,310 1700-390 31 31-Dec Supplies (Office) expense Supplies (Office) office supplies used $ 1,310 32000*6% 5/12 S 800 32 31-Dec Interest expense $ 300 Interest Payable Interest expense on loan recorded 33 31-Dec Supplies (Racing) expense $ 2,650 Supplies (Racing) Racing supplies used 2800-150 $ 2,650 $14,200 34 31 Dec Income tax expense Income tax payable Income taxes owed $14,200 $14,200 34 31-Dec Income tax expense Income tax payable Income taxes owed $14,200 Credit Closing entries No. Date Accounts Debit 35 31-Dec Service revenue (Clinic) $ 62,750 Service revenue (Racing) $ 26,800 Retained Earnings To close revenues to retained earnings $89,550 36 31-Dec Retained Earnings $36,890 Advertising expense Legal fees expense Misc expense Salary expense Depreciation expense Insurance expense Rent expense Supplies (Office) expense Supplies (Racing) expense Interest expense Income tax expense To close expenses to retained earnings $ 970 $ 1,900 $ 1,700 $ 2,000 $ 7,800 $ 2,160 $ 1,400 $ 1,310 $ 2,650 $ 800 $14,200 37 31-Dec Retained Earnings $ 3,400 Dividends To close dividends to retained earnings $ 3,400 Great Adventures Inc. TAccounts Date Debit Date Credit Cash 1-Jul $ 20,000 1-Jul S 4,320 1-Jul $ 20,000 2-Jul $ 1.900 15-Jul $ 3.500 7-Jul s 280 22-Jul S 3,850 8-Jul S 17200 30-S 70 Date Debit Date Credit Prepaid Insurance 1-Jul $ 4,320 31-Dec s 2,160