On July 1,2024, Tony and Suzie organize their new company as a corporation, Great Adventures incorporated The articles of incorporation state that the corporation will sell 27,000 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 business activities occur during July for Great Adventures. July 1 Sell $13,500 of echnon stock to suzie. July I Sell $13,500 of connon stock to Tony. July 1 Purchase a one-year insurance policy for $5,880 ( $490 per month) to cover injuries to July 2 Pay legal fees of $1,300 associated with incorporation. July 4 Purchase oftice supplies of $1,500 on account. July 7 Pay $310 to a local newspaper for advertising to appear inmediately for an upooning mountain biking elinie to be held on July 15. Attendees will be eharged \$50 the day of the clinic. July 8 Purehase 10 mountain bikes, paying $18,500 eash. Jaly 15 On the day of the clinic, Great Adventures receives cash of $2,000 in total fron 40 bikers. Tony and suzie conducts the mountain biking elinie. Because of the success of the first nountain biking olinio, Tony and suzie holds another July 24 Pay $750 to a local radio station for advertising to appear immediately. A kayaking elinie will be held on August 10, and attendees can pay $150 in advance or $200 on the day of the elinie. Great Adventures receives total cash of $6,000 in advance from 40 kayakers for the upconing kayak elinie. The following transactions occur over the remainder of 2024 . August 1 Great Adventures obtains a $49,000 low-interest loan for the conpany from the city couneil, which has recently passed an initiative encouraging business developnent related to outdoor activities. The loan is due in three years, and 68 annual interest is due each year on July 31 . kugust 4 The conpany purchases 14 kayaks, paying $23,800 cash. August 10 Fony and Suzie conduct the first kayak elinie. In addition to the $6,000 that was received in advance from kayakers on July 30 , the company receives additional cash of $4,000 from twenty new kayakers on the day of the clinie. August 17 Tony and suzie conduets a second kayak elinic, and the coepany receives $11,300 cash. August 24 office supplies of $1,500 parchased on Jaly 4 are paid in ful1. September 1 To provide beter storage of moantain bikes and kayaks when not in use, the company rents a storage shed for one year, paying $2,880 (\$240 per month) in advance. September 21 Tony and suzie conduct a rock-climbing clinie. The company receives $13,300 cash. october 17 Tony and sazie conduct an orienteering olinio. Participants practice hou to anderstand a topographical nap, read an altimeter, use a conpass, and orient through beavily wooded areas. The conpany roceives $18,000 cash. December 1. Tony and Suzie decide to hold the conpany's first adventure race on Decenber 15. Four-person teans will race from checkpoint to oheckpoint using a conbination of mountain biking, kayaking, orienteering, trail running, and rock-elinbing skills. The first tean in each category to complete a11 checkpoints in order wins. The entry fee for each tean is $700. December 5 To help organize and promote the race, Tony bires his college rocnate, Victor. Victor will be paid $50 in salary for each team that eanpetes in the race. His alary will be paid after the race. December 8 The coepany pays $1,100 to purebase a pernit fron a state park where the race will be held. the amount is recorded as a miscellaneous expesse. December 12 The company purchasen racing aupplies for $2,000 on account due in 30 days. 5 applies inelude tropbies for the top-finishing teana in each category, pronotional shirts, snack fooda and drinks for partioipants, and field markers to prepare the racecourse. Decenber 15 the conpany receives 528,000 cash from a total of forty teams, and the race is held. December 16 The company pays Victor's lalary of $2,000. December 31 The conpany pays a dividend of $4,600($2,300 to Tony and $2,300 to suzie). December 31 Using bis personal money, Tony purchasea a diamond ring for $4,900. Tony surprisea suzie by proposing that they get married, surie accepts and they get marriedi The following information relates to year-end adjusting entries as of December 31,2024. a. Depreciation of the mountain bikes purchased on July 8 and kayaks purchased on August 4 totals $7,200. 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,$260 remains. e. Interest expense on the $49,000 loan obtained from the city council on August 1 should be recorded. f. Of the $2,000 of racing supplies purchased on December 12,$150 remains. 9. Suzie calculates that the company owes $13,800 in income taxes. Beginning Balance Beginning Balance \begin{tabular}{|c|c|} \hline \multicolumn{2}{|c|}{ Interest Payable } \\ \hline Debit & \\ \hline \end{tabular} \begin{tabular}{|c|c|} \hline \multicolumn{3}{|c|}{ Income Tax Payable } \\ \hline Debit & Credit \\ \hline \end{tabular} Beginning Baiance Beginning Balance \begin{tabular}{|c|c|} \hline \multicolumn{2}{|c|}{ Common Stock } \\ \hline Debit & Credit \\ \hline \end{tabular} Beginning Balance \begin{tabular}{|l|l|} \hline & Dividends \\ \hline Debit & Credit \\ \hline \end{tabular} Beginning Balance Beginning Balance On July 1,2024, Tony and Suzie organize their new company as a corporation, Great Adventures incorporated The articles of incorporation state that the corporation will sell 27,000 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 business activities occur during July for Great Adventures. July 1 Sell $13,500 of echnon stock to suzie. July I Sell $13,500 of connon stock to Tony. July 1 Purchase a one-year insurance policy for $5,880 ( $490 per month) to cover injuries to July 2 Pay legal fees of $1,300 associated with incorporation. July 4 Purchase oftice supplies of $1,500 on account. July 7 Pay $310 to a local newspaper for advertising to appear inmediately for an upooning mountain biking elinie to be held on July 15. Attendees will be eharged \$50 the day of the clinic. July 8 Purehase 10 mountain bikes, paying $18,500 eash. Jaly 15 On the day of the clinic, Great Adventures receives cash of $2,000 in total fron 40 bikers. Tony and suzie conducts the mountain biking elinie. Because of the success of the first nountain biking olinio, Tony and suzie holds another July 24 Pay $750 to a local radio station for advertising to appear immediately. A kayaking elinie will be held on August 10, and attendees can pay $150 in advance or $200 on the day of the elinie. Great Adventures receives total cash of $6,000 in advance from 40 kayakers for the upconing kayak elinie. The following transactions occur over the remainder of 2024 . August 1 Great Adventures obtains a $49,000 low-interest loan for the conpany from the city couneil, which has recently passed an initiative encouraging business developnent related to outdoor activities. The loan is due in three years, and 68 annual interest is due each year on July 31 . kugust 4 The conpany purchases 14 kayaks, paying $23,800 cash. August 10 Fony and Suzie conduct the first kayak elinie. In addition to the $6,000 that was received in advance from kayakers on July 30 , the company receives additional cash of $4,000 from twenty new kayakers on the day of the clinie. August 17 Tony and suzie conduets a second kayak elinic, and the coepany receives $11,300 cash. August 24 office supplies of $1,500 parchased on Jaly 4 are paid in ful1. September 1 To provide beter storage of moantain bikes and kayaks when not in use, the company rents a storage shed for one year, paying $2,880 (\$240 per month) in advance. September 21 Tony and suzie conduct a rock-climbing clinie. The company receives $13,300 cash. october 17 Tony and sazie conduct an orienteering olinio. Participants practice hou to anderstand a topographical nap, read an altimeter, use a conpass, and orient through beavily wooded areas. The conpany roceives $18,000 cash. December 1. Tony and Suzie decide to hold the conpany's first adventure race on Decenber 15. Four-person teans will race from checkpoint to oheckpoint using a conbination of mountain biking, kayaking, orienteering, trail running, and rock-elinbing skills. The first tean in each category to complete a11 checkpoints in order wins. The entry fee for each tean is $700. December 5 To help organize and promote the race, Tony bires his college rocnate, Victor. Victor will be paid $50 in salary for each team that eanpetes in the race. His alary will be paid after the race. December 8 The coepany pays $1,100 to purebase a pernit fron a state park where the race will be held. the amount is recorded as a miscellaneous expesse. December 12 The company purchasen racing aupplies for $2,000 on account due in 30 days. 5 applies inelude tropbies for the top-finishing teana in each category, pronotional shirts, snack fooda and drinks for partioipants, and field markers to prepare the racecourse. Decenber 15 the conpany receives 528,000 cash from a total of forty teams, and the race is held. December 16 The company pays Victor's lalary of $2,000. December 31 The conpany pays a dividend of $4,600($2,300 to Tony and $2,300 to suzie). December 31 Using bis personal money, Tony purchasea a diamond ring for $4,900. Tony surprisea suzie by proposing that they get married, surie accepts and they get marriedi The following information relates to year-end adjusting entries as of December 31,2024. a. Depreciation of the mountain bikes purchased on July 8 and kayaks purchased on August 4 totals $7,200. 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,$260 remains. e. Interest expense on the $49,000 loan obtained from the city council on August 1 should be recorded. f. Of the $2,000 of racing supplies purchased on December 12,$150 remains. 9. Suzie calculates that the company owes $13,800 in income taxes. Beginning Balance Beginning Balance \begin{tabular}{|c|c|} \hline \multicolumn{2}{|c|}{ Interest Payable } \\ \hline Debit & \\ \hline \end{tabular} \begin{tabular}{|c|c|} \hline \multicolumn{3}{|c|}{ Income Tax Payable } \\ \hline Debit & Credit \\ \hline \end{tabular} Beginning Baiance Beginning Balance \begin{tabular}{|c|c|} \hline \multicolumn{2}{|c|}{ Common Stock } \\ \hline Debit & Credit \\ \hline \end{tabular} Beginning Balance \begin{tabular}{|l|l|} \hline & Dividends \\ \hline Debit & Credit \\ \hline \end{tabular} Beginning Balance Beginning Balance