Prepare the journal entries for transactions.

Aug 1 Great Adventures obtains a $32,000 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. Auc 4 The company purchases 14 kayaks, paying $17,680 cash. Aug. 10 Twenty additional kayakers pay $3,800 ($190 each), in addition to the $9,800 that was paid in advance on July 30, on the day of the clinic. Tony conducts the first kayak dinic. Aug. 17 Tony conducts a second kayak clinic, and the company receives $11,700 cash. Aug. 24 office supplies of $1,900 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 $3,840 (5320 per month in advance. Sep. 21 Tony conducts a rock climbing clinic. The company receives $14,300 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 $19,200 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 tean in each category to complete all checkpoints in order ans. The entry fee for each team is $s2e. 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 ract. His salary will be paid after the race. Dec miscellaneous expense. The company pays $1.600 to purchase a permit from a state park where the race will be held. The amount is recorded as a Dec. 12 The company purchases racing supplies for $2,100 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 $20,000 cash from a total of forty teams, and the race is held. Dec. 16 The company pays Victor's salary of $2,000. Det! 31 The company pays a dividend of 53,700 (51,85e to Tony and $1,850 to Suzie). Dec. 31 using his personal money. Tony purchases diamond ring for $5,100. Tony surprises suzle by proposing that they get married. Suele 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 $5 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 $1,900 of office supplies purchased on July 4, $230 remains. e. Interest expense on the $32,000 loan obtained from the city council on August 1 should be recorded 1. Of the $2,100 of racing supplies purchased on December 12, $120 remains. g. Suzie calculates that the company owes $13,600 in income taxes. X 12 Great Adventures obtains a $32,000 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. y fr usi ats, 13 The company purchases 14 kayaks, paying $17,600 cash. 14 Twenty additional kayakers pay $3,800 ($190 each), in addition to the $9,800 that was paid in advance on July 30, on the day of the clinic. Tony conducts the first kayak clinic. 15 Tony conducts a second kayak clinic, and the company receives $11,700 cash. Note : journal entry has been entered 16 Office supplies of $1,900 purchased on July 4 are paid in full. 17 To provide better storage of mountain bikes and kayaks when not in use, the company rents a storage shed for one year, paying $3,840 ($320 per month) in advance. 18 Tony conducts a rock-climbing clinic. The company receives $14,300 cash. 19 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 $19,200 cash. 20 Tony decides to hold the company's first adventure race Note : journal entry has been entered 21 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. us arg 22 The company pays $1,600 to purchase a permit from a state park where the race will be held. The amount is recorded as a miscellaneous expense. 23 The company purchases racing supplies for $2,100 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. 24 The company receives $20,800 cash from a total of forty Note : journal entry has been entered 24 The company receives $20,800 cash from a total of forty teams, and the race is held. 25 The company pays Victor's salary of $2,000. yf usi ars 26 The company pays a dividend of $3,700 ($1,850 to Tony and $1,850 to Suzie). 27 Using his personal money, Tony purchases a diamond ring for $5,300. Tony surprises Suzie by proposing that they get married. Suzie accepts and they get married. 28 Prepare the adjusting entry for depreciation. Depreciation of the mountain bikes purchased on July 8 and kayaks purchased on August 4 totals $5,600. Note: journal entry has been entered 29 Prepare the adjusting entry for insurance. Six months' of the one-year insurance policy purchased on July 1 has expired. 30 Prepare the adjusting entry for rent. Four months of the one-year rental agreement purchased on September 1 has expired. 31 Prepare the adjusting entry for office supplies. Of the $1,900 of office supplies purchased on July 4, $230 remains. B2 Prepare the adjusting entry for interest. Interest expense on the $32,000 loan obtained from the city council on August 1 should be recorded. Note: journal entry has been entered August 1 should be recorded. 33 Prepare the adjusting entry for racing supplies. Of the $2,100 of racing supplies purchased on December 12, $120 remains. y fi usi ars, 34 Prepare the adjusting entry for income taxes. Suzie calculates that the company owes $13,600 in income taxes. 35 Prepare the closing entry for revenue. 36 Prepare the dosing entry for expenses. 37. Prepare the closing entry for cash dividends. Note: journal entry has been entered 1 Sell $12,500 of common stock to Suzie. 2 Sell $12,500 of common stock to Tony. 3 Purchase a one-year insurance policy for $5,640 ($470 per month) to cover injuries to participants during outdoor clinics. 4 Pay legal fees of $1,700 associated with incorporation. 5 Purchase office supplies of $1,900 on account. 6 Pay for advertising of $290 to a local newspaper for an upcoming mountain biking clinic to be held on July 15. Attendees will be charged $70 on the day of the clinic. Note : - journal entry has been entered 7 Purchase 10 mountain bikes, paying $10,400 cash. 8 On the day of the clinic, Great Adventures receives cash of $4,900 from 70 bikers. Tony conducts the mountain biking clinic. 9 Because of the success of the first mountain biking clinic, Tony holds another mountain biking clinic and the company receives $5,500. 10 Pay $720 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. Note: = journal entry has been entered 11 Great Adventures receives cash of $9,800 in advance from 70 kayakers for the upcoming kayak clinic. 12 Great Adventures obtains a $32,000 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. Note : = journal entry has been entered