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 38,000 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 transactions occur from July 1 through December 31, Jul. 1 Sell $19,000 of common stock to Suzie. Jul. 1 Bell $19,000 of common stock to Tony: Jul 1 Purchase a one-year insurance policy for $3,840 ($320 per month) to cover injuries to participants during outdoor clinico. Jul. 2 Pay legal fees of $1,500 associated with incorporation. Jul. 4 Purchase office supplies of $1,400 on account. Jul. 7 Pay for advertising of $260 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. 8Purchase 10 mountain bikes, paying $12,600 cash. Jul. 15 On the day of the clinic, Great Adventures receives canh of $4,800 from B0 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 $5,200. Jul. 24 Pay $760 to a local radio station for advertising to appear immediately. A kayaking clinic vill be held on August 10, and attendees can pay $110 in advance or $160 on the day of the clinic. Jul. 30 Great Adventures receives cash of $6,600 in advance from 60 kayakers for the upcoming kayak clinic. Aug 1 Great Adventures obtain a $40,000 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. Aug. 4 The company purchases 14 kayaks, paying $21,600 cash. Aug. 10 Twenty additional kayakers pay $3,200 ($160 each), in addition to the $6,600 that was paid in advance on July 30, on the day of the clinic. Tony conducts the first kayak clinic. Aug. 17 Tony conducts a second kayak clinic, and the company receives $11,000 cash. Aug. 24 ottice supplies of $1,400 purchased on July 4 are paid in full. Sep. 1 To provide better storage of mountain bikes and kayaks when not in use, the company rents a storage shed for one year, paying $4,560 ($380 per month) in advance. Sep. 21 Tony conducta a rock-climbing clinic. The company receives $15,100 cash. Oct. 17 Tony conducta 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 $19,800 cash. Dec. 1 Tony decides to hold the company's first adventure race on December 15. Pour-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 $510. Dec. 5 To help organize and promote the race, Tony hires his college roommate, Victor. Victor will be paid $60 in salary for each team that competen in the race. His salary will be paid after the race. Dec. The company pays $1,000 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 purchases racing supplies for $2,900 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. Dec. 15 The company receives $20,400 cash from a total of forty teams, and the race is held. Dec. 16 The company pays Victor's salary of $2,400. Dec. 31 The company pays a dividend of $4,600 ($2,300 to Tony and $2,300 to Suzie). Dec 31 Using his personal noney, Tony purchases a diamond ring for $4,100. Tony surprises Suzie by proponing that they get married. Suzie accepts and they get married 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 $8,600 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, $320 remains. e. Interest expense on the $40,000 loan obtained from the city council on August 1 should be recorded 1. Of the $2,900 of racing supplies purchased on December 12, $220 remains 9. Suzie calculates that the company owes $13,600 in income taxes Answer is not complete. Complete this question by entering your answers in the tabs below. Stmt of Income Statement Stockholders Balance Sheet Equity For the period July 1 to December 31, 2021, prepare an income statement. GREAT ADVENTURES, Inc. Income Statement December 31, 2021 Revenues Service Revenue (Clinic) $ 65,700 Service Revenue (Racing) 20,400 $ 86,100 Total Revenues Expenses Advertising Expense Miscellaneous Expense Legal Fees Expense Salaries Expense Supplies Expense (Office) Interest Expense Depreciation Expense Rent Expense Supplies Expense (Racing) Income Tax Expense 1,020 1.000 1,500 2.400 OOOO Total Expense 5,920 80,180 $ ICE SITE Stmt of Stockholders Equity > Great Adventures Problem AP3-1 Part 4 4. Prepare an adjusted trial balance as of December 31, 2021 8 % Answer is not complete. GREAT ADVENTURES, Inc. Adjusted Trial Balance December 31, 2021 Accounts Debit Credit $ 54 X 3,840 4,560 1,400 X 21,600 0 X 1,500 0X 40,000 38,000 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 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 Salries Expense Supplies Expense (Office) Supplies Expense (Racing) Totals 4,600 65,700 20,400 1,020 1,500 1,000 2,400 $ 32,120 $ 175,454 3. Post transactions from July 1 through December 31 and adjusting entries on December 31 to T-accounts. Answer is riot complete. Cash Prepaid Insurance Beg Bal Jul 1 3,840 Beg Bal Jul 1 Jul 1 Jul 15 Jul 22 Jul 30 Aug. 1 Aug 10 Aug 17 Sep. 21 Oct 17 Dec 15 OOOOOOOOOOO 19,000 19.000 4.800 5,200 6,600 40,000 3,200 11,000 15.100 19,800 20,400 4,600 Dec 31 3,840 Jul 1 1,500 M2 260 JUL7 12,600 Jul 8 760 Jul 24 21,600 Aug 4 1400 Aug 24 4,560 Sep. 1 1,000 Dec 2.400 Dec 16 End. Bal 3,840 lolololo End. Bal 109,580 Prepaid Rent Supplies (Office) Beg Bal Sep. + Beg Bal JUL 4 4,560 1,400 End. Bat. 4,560 End. Bal 1,400 Supplies {Racing) Equipment (Bikes) Beg Bal Dec 12 Beg Bal Jul 8 2,900 12,600 End, Bal 2,900 End. Bal 12600 Equipment (Kayaks) Accumulated Depreciation Beg Bail Beg Bal Aug 4 S 21,600 0 End. Bal 21,600 End Bal 0 Accounts Payable Deferred Revenue Beg Bal Aug 24 . Beg Bal Aug. 10 1,400 2.900 Dec 12 6,600 6,600 Jul 30 End Bal 1,500 End. Bal 0