Problem Chapters 1.6 0 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 30.000 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 515,000 of common stock to Surfe. Jul. 1 Sell 515,000 of conson stock to Tony. Tul. 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 $1,900 associated with incorporation Jui. 4 Purchase office supplies of $1,000 on account. Jul. 7 Pay for advertising of $350 to a local newspaper for an upcoming mountain biking clinic to be held on July 15. Attendees will be charged 550 on the day of the clinic. Jul. Purchase 10 mountain bikes, Dayne 510, 200 cash. Jul. 15 On the day of the clinic, Great Adventures receives cash of $3,000 frou 60 bikers. Tony conducts the mountain biking clinic. Jul. 22 Because of the success of the first sountain biking clinte, Tony holds another mountain biking clinic and the company receives $3,500. Jul. 24 Pay 5940 to a local radio station for advertising to appear inmediately. A kayaking clinic will be held on August 10, and attendees can pay $150 in advance or $200 on the day of the clinic Jul 30 great Adventures receives Cash of 57, 500 in advance from 50 kayakers for the upcoming kayak clinic Saved ng Problem Chapters 1-6 Help Aug. 1 Great Adventures obtains a $45,000 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 Nannual interest is due each year on July 31. Aug. 4 The company purchases 14 kayaks, payine 316,500 cash. Aug. 10 Twenty additional kayaker's pay $4.000 ($200 each), in addition to the $7,500 that was paid in advance on July 30, on the day of the clinic. Tony conducts the first kayak clinic. Aug. 17 Tony conducts second layak clints, and the company receives $12,100 cash. Aug. 24 Office supplies of $1,000 purchased on July 4 are paid in full. Sep. 1 To provide better storage of sountain bikes and kayaks when not in use, the company rents a storage Shed for one year, paying $4,560 (5380 per month) in advance. Sep 21 Tony Conducts a rock climbing clinic. The company receives $13,500 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 heavy 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 fron 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 tean is 3540. Dec. 5 To hele organize and promote the race, Tony hires his college roosate, Victor Victor will be paid $50 in salary for each teas that competes in the race. His salary will be paid after the race. Dec. The company pays $1,700 to purchase permit from a state park where the race will be held. The amount is recorded as aiscellaneous expense. Dec. 12 The company purchases racing supplies for $2.500 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 Barkers to prepare the racecourse. Dec. 15 The ceny receives $21,600 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 34,800 ($2,400 to Tony and $2,400 to Suzie). Dec.31 Using his personal money, Tony purchases a diamond ring for $5,300. Tony surprises Surte by proposing that they get married. Surie 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 $7.000 nuing Problem Chapters 1-6 a. Depreciation of the mountain bikes purchased on July 8 and kayaks purchased on August 4 totals $7.000. 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 $1000 of office supplies purchased on July 4. $330 remains. e. Interest expense on the $46,000 loan obtained from the city council on August 1 should be recorded. f. Of the $2.500 of racing supplies purchased on December 12. $140 remains. g. Suzie calculates that the company owes $13.400 in income taxes. 3018 002406 8. Prepare a post-closing trial balance as of December 31, 2021 PM roncos Credit GREAT ADVENTURES, Inc. Post closing Trial Dalance December 31, 2021 Accounts Debit Cash Prepaid Insurance Prepaid Ront Supplies (Office) Supplies (Racing) Equipment (Bikes) Equipment (Kayaks) ng Problem Chapters 1-6 Saved Equipment (Kayaks) Accumulated Depreciation Accounts Payable Income Tax Payable Interest Payable Notes Payable Common Stock Retained Earnings Dividends Service Revenue (Clinic) Service Revenue (Racing) Advertising Expense Depreciation Expense Income Tax Expense Insurance Expense Interest Expense Legal Fees Expense Miscellaneous Expense Rent Expense Salries Expense Supplies Expense (Office) Supplies Expense (Racing) Totals