7. Post the closing entries of retained earnings to the T-account. I'm not sure exactly what to do, but I included screenshots of the directions and the income statement, statement of stockholder's equity, and balance sheet I've already completed

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 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-presidents of the company. The following transactions occur from July 1 through December 31. Jul. 1 Sell $11,000 of common stock to Suzie. Jul. 1 Sell $11,000 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 $1,100 on account. Jul. 7 Pay for advertising of $330 to a local newspaper for an upcoming mountain biking clinic to be held on July 15. Attendees will be charged $40 on the day of the clinic. Jul. 8 Purchase 10 mountain bikes, paying $15,800 cash. Jul. 15 On the day of the clinic, Great Adventures receives cash of $1,600 from 40 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 $1,950. Jul. 24 Pay $920 to a local radio station for advertising to appear immediately. A kayaking clinic will be held on August 10, and attendees can pay $110 in advance or $160 on the day of the clinic. Jul. 30 Great Adventures receives cash of $5,500 advance from 50 kayakers for the upcoming kayak clinic. Aug. 1 Great Adventures obtains a $40,000 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 6% annual interest is due each year on July 31. Aug. 4 The company purchases 14 kayaks, paying $17,600 cash. Aug. 10 Twenty additional kayakers pay $3,200 ($160 each), in addition to the $5,500 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 clinic, and the company receives $12,300 cash. Aua. 24 Office supplies of $1.100 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 rents a storage shed for one year, paying $3,600 ($300 per month) in advance. Sep. 21 Tony conducts a rock-climbing clinic. The company receives $15,000 cash. Oct. 17 Tony conducts an orienteering clinic. Participants practice how to understand a topographical map, read an altimeter, use a compass, and orient through heavily wooded areas. The company receives $18,200 cash. Dec. 1 Tony decides to hold the company's first adventure race on December 15. Four-person teams will race from checkpoint to checkpoint using a combination of mountain biking, kayaking, orienteering, trail running, and rock-climbing skills. The first team in each category to complete all checkpoints in order wins. The entry fee for each team is $670. Dec. 5 To help organize and promote the race, Tony hires his college roommate, Victor. Victor will be paid $50 in salary for each team that competes in the race. His salary will be paid after the race. Dec. 8 The company pays $1,900 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 $2,600 on account due in 30 days. Supplies include trophies for the top-finishing teams in each category, promotional shirts, snack foods and drinks for participants, and field markers to prepare the racecourse. Dec. 15 The company receives $26,800 cash from a total of forty teams, and the race is held. Dec. 16 The company pays Victor's salary of $2,000. Dec. 31 The company pays a dividend of $3,900 ($1,950 to Tony and $1,950 to Suzie). Dec. 31 Using his personal money, Tony purchases a diamond ring for $5,200. 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, 2021. a. Depreciation of the mountain bikes purchased on July 8 and kayaks purchased on August 4 totals $8,500. 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 $1,100 of office supplies purchased on July 4, $220 remains. e. Interest expense on the $40,000 loan obtained from the city council on August 1 should be recorded. f. Of the $2,600 of racing supplies purchased on December 12, $240 remains. g. Suzie calculates that the company owes $13,700 in income taxes. Retained Earnings Beg. Bal. 0 0 Dec. 31 Dec. 31 End. Bal. GREAT ADVENTURES, Inc. Income Statement December 31, 2021 Revenues: Service Revenue (Racing) $ Service Revenue (Clinic) 26,800 57,750 Total Revenues $ 84,550 1,250 8,500 13,700 2,100 1,000 Expenses: Advertising Expense Depreciation Expense Income Tax Expense Insurance Expense Interest Expense Legal Fees Expense Miscellaneous Expense Rent Expense Salaries Expense Supplies Expense (Office) Supplies Expense (Racing) 1,700 1,900 1,200 2,000 880 2,360 Total Expense Net Income 36,590 47,960 $ GREAT ADVENTURES, Inc. Statement of Stockholders' Equity For the Period Ended December 31, 2021 Common Stock Retained Earnings Total Stockholders' Equity $ 0 0 0 Balance at July 1 Issuance of Common Stock Net Income for 2021 22,000 0 22,000 47,960 (3,900) 66,060 Dividends 47,960 (3,900) 44,060 0 Balance at December 31 22,000 $ $ GREAT ADVENTURES, Inc. Balance Sheet December 31, 2021 Assets Liabilities Current Assets: Current Liabilities: Cash $ $ 2,600 93,500 2,100 2,400 Accounts Payable Income Tax Payable Interest Payable 13,700 1,000 Prepaid Insurance Prepaid Rent Supplies (Office) Supplies (Racing) 220 240 Total Current Liabilities 17,300 40,000 57,300 Total Current Assets Notes Payable Total Liabilities Stockholders' Equity 98,460 15,800 Common Stock Long-term assets: Equipment (Bikes) Equipment (Kayaks) Accumulated Depreciation 22,000 44,060 Retained Earnings 17,600 (8,500) Total Stockholders' Equity Total Liabilities and Stockholders' Equity 66,060 123,360 Total Assets $ 123,360 $