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Please correct my first two and help with the last one :) Required information [The following information applies to the questions displayed below.) Tony and
Please correct my first two and help with the last one :)
Required information [The following information applies to the questions displayed below.) 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 36,000 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. Jul. 1 Sell $18,000 of common stock to Suzie. Jul. 1 Sell $18,000 of common stock to Tony. Jul. 1 Purchase a one-year insurance policy for $4,200 ($350 per month) to cover injuries to participants during outdoor clinics. Jul. 2 Pay legal fees of $1,700 associated with incorporation. Jul. 4 Purchase office supplies of $1,300 on account. Jul. 7 Pay $220 to a local newspaper for advertising to appear immediately for an upcoming mountain biking clinic to be held on July 15. Attendees will be charged $60 the day of the clinic. Jul. 8 Purchase 10 mountain bikes, paying $11,700 cash. Jul. 15 On the day of the clinic, Great Adventures receives cash of $4,800 from 80 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 $5,400. Jul. 24 Pay $700 to a local radio station for advertising to appear immediately. A kayaking clinic will be held on August 10, and attendees can pay $140 in advance or $190 on the day of the clinic. Jul. 30 Great Adventures receives cash of $9,800 in advance from 70 kayakers for the upcoming kayak clinic. 3. Prepare a trial balance. (The items in the Trial Balance should be grouped as follows: Assets, Liabilities, Stockholders' Equity, Revenue and Expenses.) No Date General Journal Debit Credit 1 July 01 18,000 Cash Common Stock 18,000 2 July 01 18,000 Cash Common Stock 18,000 3 July 01 4,200 Prepaid Insurance Cash 4,200 4 July 02 1,700 Legal Fees Expense Cash 1,700 5 July 04 1,300 Supplies Accounts Payable 1,300 6 July 07 220 Advertising Expense Cash 220 7 July 08 11,700 Equipment Cash 11,700 8 July 15 4,800 Cash Service Revenue 4,800 9 July 22 5,400 Cash Service Revenue 5,400 10 July 24 700 Advertising Expense Cash 700 11 July 30 9,800 Cash Deferred Revenue 9,800 2. Post each transaction to the appropriate T-accounts and calculate the ending balance of each account. Prepaid Insurance 4,200 July 1 July 1 July 1 July 15 July 22 July 30 Cash 18,000 18,000 4.800 5,400 9,800 4,200 July 1 1,700 July 2 220 July 7 11,700 July 8 700 July 24 End. bal. 4,200 End. bal. 37,480 Supplies Equipment 1,300 July 4 11,700 July 8 End. bal. 1,300 End. bal. 11,700 Deferred Revenue Accounts Payable 1,300 July 4 9,800 July 30 End. bal. 1,300 End. bal. 9,800 Service Revenue Common Stock 18,000 July 1 18,000 July 1 4,800 July 15 5,400 July 22 End. bal. 36,000 End. bal. 10,200 Advertising Expense 220 Legal Fees Expense 1,700 July 2 July 7 July 24 700 End. bal. 920 End. bal. 1,700 3. Prepare a trial balance. (The items in the Trial Balance should be grouped as follows: Assets, Liabilities, Stockholders' Equity, Revenue and Expenses.) GREAT ADVENTURES, INC. Trial Balance July 31, 2021 Accounts Debit Credit Totals $ 0 $ 0Step by Step Solution
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