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 32,000 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 $16,808 of common stock to Suzie. Jul. 1 Sell $16,000 of common stock to Tony. Jul. 1 Purchase a one-year insurance policy for $5,280 ($440 per month) to cover injuries to participants during outdoor clinics. Jul. 2 Pay legal fees of $1,500 associated with incorporation. Jul. 4 Purchase office supplies of $1,500 on account. Jul. 7 Pay for advertising of $280 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 $16,400 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 52,9ee. Jul. 24 Pay 5840 to a local radio station for advertising to appear immediately. A kayaking clinic will be held on August 10, and attendees can pay 5130 in advance or $130 on the day of the clinic. Jul. 30 Great Adventures receives cash of 57,800 in advance from 60 kayakers for the upcoming kayok clinic. Aug 1 Great Adventures obtains a 536,000 low-interest loon 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 518,700 cash Aug. 10 Twenty additional kayakers pay $3,609 (5180 each), in addition to the $7,800 that was paid in advance only 30, on the day of the clinic Tony conducts the first kayak clinic Aug. 17 Tony conducts a second kayok clinic, and the company receives $11,700 cash Aug. 24 office supplies of $1,500 purchased on July 4 are paid in full. 1 to provide better storage of sountain bikes and kayaks when not in use, the company rent storage shed for one year, paying $2,760 (5230 per month) in advance. Sep. Sep. 21 Tony conducts a rock-climbing clinic. The company receives $14,300 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 $18,500 cash. Dec. 1 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 $64e. Dec. 5 To help organize and promote the race, Tony hires his college roommate, Victor. Victor will be paid $40 in salary for each team that competes in the race. His salary will be paid after the race.. Dec. 8 The company pays $1,388 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 $2,700 on account due in 30 days. Supplies incalde 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 $25,600 cash from a total of forty teans, and the race is held. Dec. 16 The company pays Victor's salary of $1,600. Dec. 31 The company pays a dividend of $4,100 ($2,eo to Tony and $2,050 to Suzie). Dec. 31 Using his personal money, Tony purchases a diamond ring for $5,300. 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, 2021 a. Depreciation of the mountain bikes purchased on July 8 and kayaks purchased on August 4 totals $7,700. 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 $1,500 of office supplies purchased on July 4, $350 remains e Interest expense on the $36,000 loan obtained from the city council on August 1 should be recorded 1. Of the $2,700 of racing supplies purchased on December 12. $190 remains. 9. Suzie calculates that the company owes $14,400 in income taxes. Credit GREAT ADVENTURES, Inc. Adjusted Trial Balance December 31, 2021 Accounts Debit 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 (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 GA $ 0 $ 0 GREAT ADVENTURES, Inc. Balance Sheet December 31, 2021 Assets Liabilities Current Assets Current Liabilities: Total Current Liabilities 0 0 0 Total Current Assets Long-term assets Total Liabilities Stockholders' Equity Total Stockholders' Equity Total Liabilities and Stockholders' Equity Total Assets S 0 For the period July 1 to December 31, 2021, prepare an income statement. GREAT ADVENTURES, Inc. Income Statement December 31, 2021 Revenues: CA 0 Total Revenues Expenses: Total Revenues $ 0 Expenses 0 Total Expense $ 0 Retained Earnings Beg. Bal. 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 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 5 0$ Search o DELL F3 F4 F5 F6 EZ FB F9 F10 a