On July 1, 2021, Tony and Suzle organize their new company as a corporation, Great Adventures Inc. The articles of Incorporation state that the corporation will sell 35.000 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 transactlons occur from July 1 through December 31. 1 Sell $17,508 of common stock to Suzie. 1 Sell $17,500 of common stock to Tony. 1 Purchase a one-year insurance policy for $5,640 ($478 per month) to cover injuries to participants during outdoor clinics 2 Pay legal fees of $1,1e0 associated with incorporation 4 Purchase office supplies of $1,288 on account 7 Pay for advertis ing of $35e to a local news paper for an upcoming nourntain biking clinic to be held on July 15. Attendees will be charged $40 on the day of the clinic. 8 Purchase 18 mountain bikes, paying $13,288 cash Jul Jul. Jul. Jul. Jul. Jul Jul Jul 15 On the day of the clinic, Great Adventures receives cash of $2,480 fron 60 bikers. Tony conductts the mountain biking clinic. Jul 22 Because of the success of the first nountain biking clinic, Tony holds another mountain biking clinic and the company receives $2,9e0. Jul. 24 Pay $838 to a local radio station for advertising to appear innediately. A kayaking clinic will be held on August 18, and attendees can pay $128 in advance or $170 on the day of the clinic Jul 30 Great Adventures receives cash of $9,600 in advance from 80 kayakers for the upcoming kayak clinic. Aug. 1 Great Adventures obtains a $43,008 low-interest loan for the company from the city council, which has recently passed an initiative encouraging bus iness development related to outdoor activities. The loan is due in three years, and 6% annual interest is due each year on July 31. 4 The company purchases 14 kayaks, paying $28,508 cash Aug. Aug. 18 Twenty additional kayakers pay $3,480 ($178 each), in addition to the $9,608 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 $12,180e cash Aug. 24 Office supplies of $1,208 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 $3,128 ($260 per month) in advance. Sep. 21 Tony conducts a rock-climbing clinic. The company receives $13,200 cash. Oct. 17 Tony conducts an orienteering clinic. Participants practice how to understand a topographical map, read an altineter, use a compass, and orient through heavily wooded areas. The conpany receives $18,20e cash 1 Tony decides to hold the conpany'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 $528 5 To help organize and pronote the race, Tony hires his college roonnate, Victor. Victor will be paid $6e in salary for each tean that competes in the race. His salary will be paid after the race 8 The company pays $1,280 to purchase a permit from a state park where the race will be held. The amount is recorded as a miscellaneous expense Dec. Dec Dec. Dec. 12 The company purchases racing supplies for $2,280 on account due in 30 days. Supplies include trophies for the top-finishing teans in each category, pronotional shirts, snack foods and drinks for participants, and field markers to prepare the racecourse. Dec. 15 The company receives $20,880 cash fron a total of forty teams, and the race is held Dec. 16 The company pays Victor's salary of $2,488. Dec. 31 The company pays a dividend of $3,900 ($1,950 to Tony and $1,95e to Suzie) Dec. 31 Using his personal noney, Tony purchases a diamond ring for $5,400. 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. Depreclation of the mountaln bikes purchased on July 8 and kayaks purchased on August 4 totals $8,340 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, $260 remains. e. Interest expense on the $43,000 loan obtalned from the city council on August 1 should be recorded. f. Of the $2,200 of racing supples purchased on December 12, $300 remalns. g. Suzle calculates that the company owes $13,000 In Income taxes. General Statement of General Income Balance Sheet Trial Balance Requirement Journal Ledger Statement SE 1. Record each of the transactions listed above in the 'General Journal' tab (these are shown as items 1 27). Review the General Ledger and the 'Trial Balance' tabs to see the effect of the transactions on the account balances. 2. Record the adjusting entries in the 'General Journal' tab (these are shown as items 28-34) 3. Review the adjusted 'Trial Balance' as of December 31, 2021 4. Prepare an income statement for the period ended December 31, 2021, in the 'Income Statement' tab 5. Prepare a statement of stockholder's equity for the period ended December 31, 2021, in the Statement of Stockholder's Equity' tab. 6. Prepare a classified balance sheet as of December 31, 2021 in the Balance Sheet' tab 7. Record the closing entries in the 'General Journal tab (thesse are shown as items 35-37)