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 23,000 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. e day of the cl bikes, paying $10,900 the day of the clin mountain biking clin ne success aceives $2,800. artising to appear $180 on th Jul. 1 Sell $11,500 of common stock to Suzie. Jul. 1 Sell $11,500 of common stock to Tony. Jul. 1 Purchase a one-year insurance policy for $5,640 ($470 per month) to cover injuries to participants during outdoor clinics. Jul. 2 Pay Legal fees of $1,400 associated with incorporation. Jul. 4 Purchase office supplies of $1,200 on account. Jul. 7 Pay for advertising of $270 to a local newspaper for an upcoming mountain biking clinic to be held on July 15. Attendees will be charged $40 on the day of the clinic. Jul. 8 Purchase 10 mountain bikes, paying $10,900 cash. Jul. 15 On the day of the clinic, Great Adventures receives cash of $2,400 from 60 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 $2,800. Jul. 24 Pay $790 to a local radio station for advertising to appear immediately. A kayaking clinic will be held on August 10, and attendees can pay $130 in advance or $180 on the day of the clinic. Jul. 30 Great Adventures receives Cash of $7,800 in advance from 60 kayakers for the upcoming kayak clinic. Aug. 1 Great Adventures obtains a $47,000 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 68 annual interest is due each year on July 31. Aug. The company purchases 14 kayaks, paying $16,500 cash. Aug. 10 Twenty additional kayakers pay $3,600 ($180 each), in addition to the $7,800 that was paid in advance on July 30, on the day of the clinic. Tony conducts the first kayak elinie. Aug. 17 Tony conducts a second kayak elinie, and the company receives $11,500 cash. Aug. 24 Office supplies of $1,200 purchased on July 4 are paid in full. Sep. To provide better storage of mountain bikes and kayaks when not in use, the company rents a storage shed for one year, paying $2,520 ($210 per month) in advance. Sep. 21 Tony conducts a rock-climbing clinic. The company receives $14,800 cash. Oct. 17 Tony conducts 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 $19,000 cash. Dec. Tony decides 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 5610. Dec. 5. To help organize and promote the race, Tony hires his college roommate, Vietor. Victor will be paid $50 in salary for each team that competes in the rada. Mis salary will be paid after the race. Dee. The company pays $1,800 to purchase a permit from state park where the race will be held. The amount is recorded as a miscellaneous expense. Dec. 12 The company purchases racing supplies for $2.200 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 $24.400 cash from a total of forty tens, and the race is held. Dec. 16 The company pays Vietor's salary of $2,000. Dec. 31 The company pays a dividend of $3,400 ($1,700 to Tony and $1,700 to Sunie). Dec.31 Using his personal money. Tony purchases a diamond ring for $3,800. Tony surprises Susie by proposing that they get married. Susie accepte 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 $8,100. 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 $1,200 of office supplies purchased on July 4, $380 remains. e. Interest expense on the $47,000 loan obtained from the city council on August 1 should be recorded. t. Of the $2,200 of racing supplies purchased on December 12, $250 remains. 9. Suzie calculates that the company owes $13,900 in income taxes. Great Adventures Problem AP3-1 Part 5 5. For the period July 1 to December 31, 2021, prepare an income statement, statement of stockholders' equity and classified balance sheet. Answer is not complete. Complete this question by entering your answers in the tabs below. Income Stmt of Balance Statem... Stockho... Sheet Prepare a classified balance sheet as of December 31, 2021. (Amounts to be deducted should be indicated by a minus sign.) GREAT ADVENTURES, Inc. Balance Sheet December 31, 2021 Assets Liabilities Current Assets: Current Liabilities: Prepaid Rent $ 1,680 Interest Payable Cash 107,930x Supplies (Racing) X Prepaid Insurance 2.820 Income Tax Payablo 13,90 Notes Payable X 47.000X Total Current Liabilities 62,325 62,325 Total Current Assets 112.430 Total Liabilities Long-term assets: Stockholders' Equity Equipment (Bikes) 10,900 Equipment (Kayaks) 16,500 Accumulated Depreciation (8,100 Total Stockholders' Equity Total Liabilities and Stockholders Total Assets 131,730 Equity