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Required information RWP3.I (Algo) Great Adventures Continuing Problem [The following information applies to the questions displayed below.] Tony and Suzie graduate from college in May 2024 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 Jury 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 37.000 shares of common stock for Sl 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 July July July 2 July 4 Duty 7 July 8 outy rs July 22 July 24 July 30 Sell $18. See of comon stock to Suzie. Sell of comon stock to Tony. Purchase a oneyear insurance pot Icy for $5,160 ($430 per month) to cover injuries to part Icapants during outdoor clinics. Pay legal fees of $1.6g associated Vith incorporation. Purchase office supplies of on account. Pay $360 to a local nevspaper tor advertising to appear imediatety for an upcoming mountain biking clinic to be held on July IS. Attendees be charged SSC the day of the c tinac. Purchase 10 nountain bikes. paying S12.9 cash. On the day of the clinic, Great Adventures receives cash of $2.500 in total from SO bikers. Tony and Suzie conducts the mountazn biking clinic. Because of the success of the first nountain biking clinic, Tony and Suzie holds another mountain biking clinic and the company receives s2,8t. Pay $800 to a tocai radio station for advertisrng to appear imediately. A kayaking clinic be held on August Ie. and attendees can pay SIO in advance or $19e on the day of the clinic. Great Adventures receives total cash ot $8,400 in advance from 60 kayakers for the upcoming kayak clinic. The following transactions occur over the remainder of 2224. August 1 August 4 August le August 17 August 24 Great Adventures obtains a $36. dee low-interest loan for the ciany from the city council. which has recently passed an nit lative encouraging business development related to outdoor activities. The loan is due In three years. and 6 annual interest as due each year on July 31. The conpany purchases 14 kayaks, paying $22, cash. Tony and Suzie conduct the first kayak clinic. In addition to the SB.4e that was received in advance frc,n kayakers on July 30, the company receives additional cash of from tventy new kayakers on the day of the c linic. Tony and Suzie conducts a second kayak clinic. and the company receives cash. Office supplies of Sl.oee purchased on July 4 are paid in tutu. September To provide better storage of mountain bikes and kayaks When not in use. the company rents a storage shed for one year. paying SS. 6ee ($30 per month) in advance. September 21 Tony and Suzie conduct a rock-climbing clinic. The company receives $13.9" cash. October 17 December December December December December December December December S 8 12 16 31 31 Tony and Suzie conduct an orienteering clinic. Participants practice how to understand a topographical map, read an attineter. use a compass, and orient through heavily wooded areas. The company receives $19.8 cash. Tony and Suzie decide to hold the conoanys first adventure race on December IS. Fourperson teams race from checkpoint to checkpoint using a combination of muntazn biking. kayaking, orienteering, trail running. and rockclinmng skills. The first team In each category to comp tete au checkpoints in order Wins. the entry fee for each team is SSSO. To help organize and promote the race. tony hires his college roommate, Victor. Victor be paid $60 in salary for each tear that conpetes xn the race. His salary be paid after the race. The company pavs $1.300 to purchase a permit fron a state park where the race be held. the .ount is recorded as a miscel laneous expense. The conpany purchases racing supplies for $2. on account due in 30 days. Supplies include trophies for the top-finishing tens in each category, promotional shirts. snack foods and drinks for participants. and field markers to prepare the racecourse. The coopany receives $22. eoe cash from a total of forty teams. and the race is held. The company pays Victor's salary of $2. The company pays a dividend of $4. to Tony and $2.ese to Suzie). using his personal money. Tony purchases a diamond ring for $3,900. 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, 2024. a. Depreciation Of the mountain bikes purchased on July 8 and kayaks purchased on August 4 totals 9200. 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 51.000 of office supplies purchased on Jury 4, $240 remains. e. Interest expense on the $36.000 loan obtained from the city council on August 1 should be recorded. f. Of the S2.700 of racing supplies purchased on December 12.$250 remains. g. Suzie calculates that the company owes $14,400 in income taxes. RWP3-I (Algo) Great Adventures Continuing Problem Part 4 4. Prepare an adjusted trial balance as of December 31.2024. Trial December 31.2024 Cash Prepaid Inevance Prepaid Rent Supplies comce Supplies (Racirgl Equipment (Bikes) Equipment (Kapks) Accumulated Depreciabon Accounts PayOle Payable Interest Payabk Notes Common Dividends Sewee Revenue (Clinic) (Racing) Advertising Expense Depreciation Expense Tax Exvense Insurance Expense Interest Expense Legal Fees Expense Miscedanews Expense Rent Expense Expense Supplies (Once) Supplies Expense Totals S 61,150 4.320 3.300 2.450 12,900 22,000 37.000 22.000 I .coo 2.700 169.580 s s 7 zoo 3.650 14,400 1.C80 36.000 26,400 14.400 .C80 1.600 2.cso 3.600 2.460 118.020