Part 1 of 8 769 points eBook Print References Tony and Suzie graduate from college in May 2021 and begin developing their new business. They begin by offering clinics for basic outdoor activities such as mountain biking or kayaking. Upon developing a customer base, they'll hold their first adventure races. These races will involve four-person teams that race from one checkpoint to the next using a combination of kayaking, mountain biking, orienteering, and trail running. In the long run, they plan to sell outdoor gear and develop a ropes course for outdoor enthusiasts. 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 20,000 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 $10,000 OF CRADD stock to Suzie. Jul. 1 Sell $10.000 of contock to Tong. Jul 1 Purchase a ne-year insurance policy for $1.000 ($400 per month) to cover injuriet to participante during outdoor clinics Jul 2 Pay legal fees of $1.500 associated with incorporation Jul. 4 Purchase office supplies of $1.800 secount Jul. 7 Pay for advertising of 1300 to a local newspaper for an upcoming mountain baking clinic to be held on July 15. Attendees will be charged 550 on the day of the clinic Jul 8 Purchase 10 mountain bike. paring $13.000 cash 15 On the day of the clinic, Great Adventures receives each of $2.000 from 40 bikers. Tony conducts the mountain bikin clinic Jul 22 Beware of the record of the first mountain biking clinic. Tong holds another mountain biking cline and the company receives $2.100. Jul 24 Pay $700 to a local radio station for advertising to appear idistely. A kayaking cline will be held on Must 10. and attendees can pay $100 an advance or $150 on the day of the clinic. Jul 30 Great Adventures receives cash of $4.000 an advance from 40 kakere for the upcoming knyak clinic. Aur. 1 Great Adventures obtain a $30.000 low-interest lom for the company from the city comcil which has recently passed an initiative encouraging business development related to outdoor activities. The loan is due in three years and al interest is dusch year on July 31. Aug. 4 The company purchase 14 kayaks. ping $20.000 cash Aug. 10 Tvinty additional workers pay $3.000 ($150 each), in dition to the 54,000 that was paid in advance on July 30. on the day of the clinic. Tony condicts the first layak elinie, . 17 Tony conduct a second kayak eliste.d the company receives $10.500 ch Aur. 24 Office supplies of $1.800 purchased on July 4 are paid in full. Sep 1 To provide better storate of mountain bike Xayake when not in the company rents storage shed for an year. paring $2,400 ($200 per month) in advance. Sep. 21 Tony contact: rock-clisbane clinic. The company receives $13. 200 cash et. 17 Tony containeering clinic. Partiest practice how to understand a topographical map. Read an altinster, use a compass, and otsent through heavily wooded area. The company receives $17.900 cash 1 Tomy decides to hold the company's first adventure race on December 15. Four person to will race from checkpoint to checkpoint using a combination of mountain bikin. kayaking, oricatering, trail running, and rock-climbing skills. The first to inch category to complete all checkpoints in order vins. The entry fee for each te is 1500. Dec , 5 To help reste und promote the race. To hire he colleceronte VectorVictor will be paid 350 in salary for each tea that competes in the race. His salary will be paid after the race. Dec. 8 The company pw 11.200 to purchase a permit from a state park were the race will be held. The mount in recorded at scellaneous expense. Dec 12 The company purchase racing mupplies for $2.000 on account doe in 10 days. Supplies include trophae tor the top-finishing to in each category, promotional harmack foods and drinkt for participants and field saker to prepare the racecourse. 15 The company receiver $20.000 cash from a total of forty tent and the race held Dec 16 The company De Victory of $2.000. Dec The COO dividend of $4.000 (2. on to Toro and $2,000 to Sunte). Dec 31 Uring his personal, Tony purchase a dondrint for $4.500. Tony Surte by proporting that they et married Susie accepts and they get married! Dec Ded 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 $8.000 b. Sex 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 $1,800 of office supplies purchased on July 4 $300 remains e. Interest expense on the $30.000 loan obtained from the city council on August I should be recorded for the $2.800 of racing supplies purchased on December 12. $200 remains 9 Suzie calculates that the company owes $14,000 in income taxes Part 1 of 8 769 points eBook Print References Tony and Suzie graduate from college in May 2021 and begin developing their new business. They begin by offering clinics for basic outdoor activities such as mountain biking or kayaking. Upon developing a customer base, they'll hold their first adventure races. These races will involve four-person teams that race from one checkpoint to the next using a combination of kayaking, mountain biking, orienteering, and trail running. In the long run, they plan to sell outdoor gear and develop a ropes course for outdoor enthusiasts. 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 20,000 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 $10,000 OF CRADD stock to Suzie. Jul. 1 Sell $10.000 of contock to Tong. Jul 1 Purchase a ne-year insurance policy for $1.000 ($400 per month) to cover injuriet to participante during outdoor clinics Jul 2 Pay legal fees of $1.500 associated with incorporation Jul. 4 Purchase office supplies of $1.800 secount Jul. 7 Pay for advertising of 1300 to a local newspaper for an upcoming mountain baking clinic to be held on July 15. Attendees will be charged 550 on the day of the clinic Jul 8 Purchase 10 mountain bike. paring $13.000 cash 15 On the day of the clinic, Great Adventures receives each of $2.000 from 40 bikers. Tony conducts the mountain bikin clinic Jul 22 Beware of the record of the first mountain biking clinic. Tong holds another mountain biking cline and the company receives $2.100. Jul 24 Pay $700 to a local radio station for advertising to appear idistely. A kayaking cline will be held on Must 10. and attendees can pay $100 an advance or $150 on the day of the clinic. Jul 30 Great Adventures receives cash of $4.000 an advance from 40 kakere for the upcoming knyak clinic. Aur. 1 Great Adventures obtain a $30.000 low-interest lom for the company from the city comcil which has recently passed an initiative encouraging business development related to outdoor activities. The loan is due in three years and al interest is dusch year on July 31. Aug. 4 The company purchase 14 kayaks. ping $20.000 cash Aug. 10 Tvinty additional workers pay $3.000 ($150 each), in dition to the 54,000 that was paid in advance on July 30. on the day of the clinic. Tony condicts the first layak elinie, . 17 Tony conduct a second kayak eliste.d the company receives $10.500 ch Aur. 24 Office supplies of $1.800 purchased on July 4 are paid in full. Sep 1 To provide better storate of mountain bike Xayake when not in the company rents storage shed for an year. paring $2,400 ($200 per month) in advance. Sep. 21 Tony contact: rock-clisbane clinic. The company receives $13. 200 cash et. 17 Tony containeering clinic. Partiest practice how to understand a topographical map. Read an altinster, use a compass, and otsent through heavily wooded area. The company receives $17.900 cash 1 Tomy decides to hold the company's first adventure race on December 15. Four person to will race from checkpoint to checkpoint using a combination of mountain bikin. kayaking, oricatering, trail running, and rock-climbing skills. The first to inch category to complete all checkpoints in order vins. The entry fee for each te is 1500. Dec , 5 To help reste und promote the race. To hire he colleceronte VectorVictor will be paid 350 in salary for each tea that competes in the race. His salary will be paid after the race. Dec. 8 The company pw 11.200 to purchase a permit from a state park were the race will be held. The mount in recorded at scellaneous expense. Dec 12 The company purchase racing mupplies for $2.000 on account doe in 10 days. Supplies include trophae tor the top-finishing to in each category, promotional harmack foods and drinkt for participants and field saker to prepare the racecourse. 15 The company receiver $20.000 cash from a total of forty tent and the race held Dec 16 The company De Victory of $2.000. Dec The COO dividend of $4.000 (2. on to Toro and $2,000 to Sunte). Dec 31 Uring his personal, Tony purchase a dondrint for $4.500. Tony Surte by proporting that they et married Susie accepts and they get married! Dec Ded 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 $8.000 b. Sex 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 $1,800 of office supplies purchased on July 4 $300 remains e. Interest expense on the $30.000 loan obtained from the city council on August I should be recorded for the $2.800 of racing supplies purchased on December 12. $200 remains 9 Suzie calculates that the company owes $14,000 in income taxes