pleass help fill in statement of SE, and the journal entry provlems
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 22,000 shares of common stock for $1 each. Each share of stock represents a unit of ownership. Tony and Suzie will act as co- Idents of the company. The following transactions occur from July 1 through December 31 ook Jol. ences 1 Sell $11,000 of conmon stock to Suzie. 1 Sell $11,000 ot common stock to Tony. Jul. 1 Purchase a one-year insurance policy for $4,320 ($360 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 $1,800 on necount. Jul. 7 Pay for advertising of $370 to a local newspaper for an upcoming mountain biking alinie to be held on July 15. Attendees will be charged $50 on the day of the clinic. Jul. 8 Purchase 10 mountain bikes, paying $15,400 canh. Jul. 15 On the day of the clinic, Great Adventures receives Cash of $2,500 from bikers. Tony cts the mount baking clinie. Jul. 22 Dec une of the success of the first mountain biking Clinie, Tony holds another thountain bixing clinic and the company receives $2,800 Jol. 24 Pay $840 to a local radio station for advertising to appear immediately. A kayaking ellose 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 $11,200 in advance from 80 kayakers for the upcoming kayak clinic. hug. 1 Great Adventures obtain a $49,000 low-interest loan for the company from the city council, which has recently passed an initiative encouraging business development related to outdoor activities. The loan is due in three years, and 6t annual interest is due each year on July 31. Aug. 4 The company purchases 14 kayaka, paying $22,400 cash. Aug. 10 Twenty additional kayakers pay $3,000 ($190 each), in addition to the $11,200 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 elinie, and the company receives $11,500 cash. Aug, 24 ottice supplies of $1,300 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 tents a storage shed for one year, paying $3,000 ($250 per month) in advance. Sep. 21 Tony conduct a rock-climbing clinic. The company receives 514,200 cash. oct. 17 Tony conducto an orienteering clinie. Participants practice how to understand a topographical map. read an altimeter, use a compass, and orient through heavily wooded areas. The company receives $19,100 cash. Dec. 1 Tony decides to hold the company's first adventure race on December 15. Four-person teams will race fron checkpoint to checkpoint using a combination of mountain biking, kayaking, orienteering, trail running, and rock-climbing skills. The first toam in each category to complete all checkpoints in order wins. The entry fee Dec. 5 To help organize and promote the race, Tony hires his college roommate, Victor. Victor will be paid $40 in salary for each team that competes in the race. His salary will be paid after the race. Dec. 8 The company pays $1,000 to purchase a permit from a state park where the race will be held. The amount is recorded as a miscellaneous expense. Dec. 12 The company purchases racing supplies for $2,200 on account due in 30 days. Supplies include trophies for the top-finishing teams in each category, promotional shirts, snack food and drinks for participants, and field markers to prepare the racecourse. Dec. 15 The company receives $22,800 cash from a total of forty teams, and the race is held. Dec. 16 The company pays Victor's salary of $1,600. Dec. 31 The company pays a dividend of $3,700 ($1,850 to Tony and $1,650 to Susie), Dec. 31 Using his personal money, Tony purchases a diamond ring for $4,100. Tony surprises Susie by proposing that they get married. Suzie accepts and they got married 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 $7,560, 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 $1,800 of office supplies purchased on July 4, $400 remains e. Interest expense on the $49,000 loan obtained from the city council on August 1 should be recorded. f. Of the $2,200 of racing supplies purchased on December 12, $180 remains. n Suzie calculates that the company owes $13,700 in income taxes, Requirement General Journal General Ledger Trial Balance Income Statement Statement of SE Balance Sheet Using the dropdown buttons, select the item that accurately describes the values that either increase or indicated. Select 'Adjusted' from the dropdown, which will then populate the balances in those accounts f balance. Post-closing ok 3 GREAT ADVENTURES, Inc. Statement of Stockholders' Equity For the year ended December 31, 2021 ences Common Stock Retained Earnings Total Stockholders' Equity 22,000 22,000 (61.640) (61,640) 22,000 $ 104,870 $ -39,640 View transaction list Journal entry worksheet Journal entry worksheet ook
