Required information 6 Part 6 of 6 3 points eBook Print . Cash Prepaid Insurance Prepaid Rent Supplies (Office) Supplies (Racing) Equipment (Bikes) 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 References $ 0 $ Me 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 26,000 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 $13,008 of common stock to Suzie. 1 Sell $13,000 of common stock to Tony. 1 Purchase a one-year insurance policy for $4,560 (5380 per month) to cover injuries to participants during outdoor clinics. Jul 2 Pay legal fees of $1,800 associated with incorporation Jul 4 Purchase office supplies of $1,900 on account. Tul. 7 Pay for advertising of $280 to a local newspaper for an upcoming mountain biking clinic to be held on July 15. Attendees will be charged $30 on the day of the clinic. Jul. 8 Purchase 10 mountain bikes, paying $14,800 cash. Jul. 15 On the day of the clinic, Great Adventures receives cash of $2,100 from 70 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 $2,550. Jul. 24 Pay 5840 to a local radio station for advertising to appear immediately. A kayaking clinic will be held on August 10, and attendees can pay $100 in advance or $150 on the day of the clinic. Jul. 30 Great Adventures receives cash of $4,000 in advance from 40 kayakers for the upcoming kayok clinic. Aug 1 Great Adventures obtains a $47,000 low-interest loan for the company from the city council, which has recently passed an initiative encouraging business development related to outdoor activities. The loon is due in three years, and 6% annual interest is due cach year on July 31. Aug. 4 The company purchases 14 kayaks, paying $16,900 cash. Aug. 10 Twenty additional kayakers pay $3.000 ($150 each), in addition to the $4,000 that was paid in advance on July 30, on the day of the clinic. Tory conducts the first kayak clinic. Aug. 17 Tony conducts a second kayak clinic, and the company receives $11,500 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 $3,240 (5270 per month) in advance. Sep. 21 Tony conducts a rock climbing clinic. The company receives $14,600 cash. Oct. 17 Tony conducts an orienteering clinic. Participants practice how to understand a topographical map, read an altineter, use a compass, and orient through heavily wooded areas. The company receives $18,100 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 cach team is $670. Dec. 5 To help organize and promote the race, Tony hires his college roommate, Victor. Victor will be paid $30 in Salary for each team that competes in the race. His salary will be paid after the race. Dec. 8. The company pays $1,700 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 $2,300 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 526,00 cash from a total of forty teams, and the race is held. Dec. 16 The company pays Victor's salary of $1,200. Dec. 31 The company pays a dividend of $3,400 ($1,700 to Tony and $1,700 to Suzie). Dec. 31 Using his personal money, Tony purchases a diamond ring for $3,700. 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 Moy 7 Date 7/1 7/15 7/22 7/30 8/1 8/10 8/17 9/21 10/17 12/15 Desc Stock sale Clinic receipts Clinic receipts Clinic receipts Borrowing Clinic receipts Clinic receipts Clinic receipts Clinic receipts Race receipts Amount Date $ 20,000 7/1 2,089 7/2 2,380 7/7 4,000 7/8 25,000 7/24 3,008 8/4 10,509 8/24 12,700 9/1 17,400 12/8 20,000 12/16 12/31 12/31 $116.900 Check 101 102 DC 103 DC 104 DC 105 106 107 108 109 Desc. Insurance Legal fees Advertising Bikes Advertising Kayaks Office supplies Rent Race permit Salary Dividend Dividend Amount $4,200 1,250 250 11,500 650 21,000 1,750 1,800 1,150 2.000 2,000 2,000 $49,550 3 points Skipped Book Summary of Transactions Beginning Cash Balance July 1, 2021 $ + Cash Receipts $116,900 - Cash Disbursements $49,550 Endins Cash Balance December 31, 2021 $67, 350 Print Suzie has not reconciled the company's cash balance with that of the bank since the company was started. She asks Sur provide her with a six- month bank statement. To save time. Suzie makes deposits at the bank only on the first day of eac References Member FDIC 1124537774 Dec 31, 2021 Ending Balance December 31, 2021 $53,650 SUNNET BANK Leading You to the Top Account Holder: Great Adventures, Inc. Account Numbers Statement Date: Account Summary Beginning Balance Deposits and Credits Withdrawals and Debits July 1, 2021 No Total No Total 50 B $97,400 11 543,750 Account Details Deposits and Credits withdrawals and Debits Date Amount Desc Date No. Amount Desc 771 $ 28,000 DEP 7/1 101 $4,200 CHK 8/1 8,300 7/7 102 1,250 8/1 CH 25,000 DEP 2/2 250 DC 13,500 DEP 7/14 103 11,500 CHK 9/30 200 INT 7/24 650 OC 10/1 12,700 DEP 8/9 184 21.000 11/1 CHK 17,400 DEP 8/24 1,250 DC 12/31 300 INT 9/2 les 1.800 CHIR 9/30 100 SF 12/10 1,150 CH 12/31 100 SF DEP 9/1 8/9 Daily Balance Date Amount 7/1 $15,300 7/7 14,300 7/14 2,800 7/24 2,150 8/1 35,450 14,450 8/24 12,700 9/1 26,200 9/2 24,400 9/30 24,500 10/1 37,200 11/1 54,600 12/10 53,450 12/31 $53,650 106 $ 97,400 $43,750 IMC 7 Desc. DEP Customer deposit INT Interest earned SF Service fees CHK Customer check DC Debit card After comparing the two balances, Suzie has some concern because the bank's balance of $53,650 is substantially less than the company's balance of $67.350. 3 cents 2-a. Prepare Great Adventures' bank reconciliation for the six-month period ended December 31, 2021 (Amounts to be deducted should be indicated with a minus sign. Total entries to the same account together when entering in the bank reconciliation.) swood ebook GREAT ADVENTURES, INC Bank Reconciliation December 31, 2021 Bank's Cash Balance Company's Cash Balance Per Bank Statement Per General Ledger References Bank Balance Per Reconciliation Company Balance Per Reconciliation 2-b. Record any necessary entries to adjust cash. (of no entry is required for a transaction/event, select "No Journal Entry Required" In the first account field. Total entries to the same account together when entering in the journal entry carousel) View transaction list Journal entry worksheet 1 2 > Record the amounts that increase cash. Me View transaction list Book Journal entry worksheet Print ces Record the amounts that decrease cash. Note: Enter debits before credits. General Journal Debit Credit Date Dec. 31. 2021 Record entry Clear entry View general Journal Required information 6 Part 6 of 6 3 points eBook Print . Cash Prepaid Insurance Prepaid Rent Supplies (Office) Supplies (Racing) Equipment (Bikes) 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 References $ 0 $ Me 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 26,000 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 $13,008 of common stock to Suzie. 1 Sell $13,000 of common stock to Tony. 1 Purchase a one-year insurance policy for $4,560 (5380 per month) to cover injuries to participants during outdoor clinics. Jul 2 Pay legal fees of $1,800 associated with incorporation Jul 4 Purchase office supplies of $1,900 on account. Tul. 7 Pay for advertising of $280 to a local newspaper for an upcoming mountain biking clinic to be held on July 15. Attendees will be charged $30 on the day of the clinic. Jul. 8 Purchase 10 mountain bikes, paying $14,800 cash. Jul. 15 On the day of the clinic, Great Adventures receives cash of $2,100 from 70 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 $2,550. Jul. 24 Pay 5840 to a local radio station for advertising to appear immediately. A kayaking clinic will be held on August 10, and attendees can pay $100 in advance or $150 on the day of the clinic. Jul. 30 Great Adventures receives cash of $4,000 in advance from 40 kayakers for the upcoming kayok clinic. Aug 1 Great Adventures obtains a $47,000 low-interest loan for the company from the city council, which has recently passed an initiative encouraging business development related to outdoor activities. The loon is due in three years, and 6% annual interest is due cach year on July 31. Aug. 4 The company purchases 14 kayaks, paying $16,900 cash. Aug. 10 Twenty additional kayakers pay $3.000 ($150 each), in addition to the $4,000 that was paid in advance on July 30, on the day of the clinic. Tory conducts the first kayak clinic. Aug. 17 Tony conducts a second kayak clinic, and the company receives $11,500 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 $3,240 (5270 per month) in advance. Sep. 21 Tony conducts a rock climbing clinic. The company receives $14,600 cash. Oct. 17 Tony conducts an orienteering clinic. Participants practice how to understand a topographical map, read an altineter, use a compass, and orient through heavily wooded areas. The company receives $18,100 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 cach team is $670. Dec. 5 To help organize and promote the race, Tony hires his college roommate, Victor. Victor will be paid $30 in Salary for each team that competes in the race. His salary will be paid after the race. Dec. 8. The company pays $1,700 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 $2,300 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 526,00 cash from a total of forty teams, and the race is held. Dec. 16 The company pays Victor's salary of $1,200. Dec. 31 The company pays a dividend of $3,400 ($1,700 to Tony and $1,700 to Suzie). Dec. 31 Using his personal money, Tony purchases a diamond ring for $3,700. 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 Moy 7 Date 7/1 7/15 7/22 7/30 8/1 8/10 8/17 9/21 10/17 12/15 Desc Stock sale Clinic receipts Clinic receipts Clinic receipts Borrowing Clinic receipts Clinic receipts Clinic receipts Clinic receipts Race receipts Amount Date $ 20,000 7/1 2,089 7/2 2,380 7/7 4,000 7/8 25,000 7/24 3,008 8/4 10,509 8/24 12,700 9/1 17,400 12/8 20,000 12/16 12/31 12/31 $116.900 Check 101 102 DC 103 DC 104 DC 105 106 107 108 109 Desc. Insurance Legal fees Advertising Bikes Advertising Kayaks Office supplies Rent Race permit Salary Dividend Dividend Amount $4,200 1,250 250 11,500 650 21,000 1,750 1,800 1,150 2.000 2,000 2,000 $49,550 3 points Skipped Book Summary of Transactions Beginning Cash Balance July 1, 2021 $ + Cash Receipts $116,900 - Cash Disbursements $49,550 Endins Cash Balance December 31, 2021 $67, 350 Print Suzie has not reconciled the company's cash balance with that of the bank since the company was started. She asks Sur provide her with a six- month bank statement. To save time. Suzie makes deposits at the bank only on the first day of eac References Member FDIC 1124537774 Dec 31, 2021 Ending Balance December 31, 2021 $53,650 SUNNET BANK Leading You to the Top Account Holder: Great Adventures, Inc. Account Numbers Statement Date: Account Summary Beginning Balance Deposits and Credits Withdrawals and Debits July 1, 2021 No Total No Total 50 B $97,400 11 543,750 Account Details Deposits and Credits withdrawals and Debits Date Amount Desc Date No. Amount Desc 771 $ 28,000 DEP 7/1 101 $4,200 CHK 8/1 8,300 7/7 102 1,250 8/1 CH 25,000 DEP 2/2 250 DC 13,500 DEP 7/14 103 11,500 CHK 9/30 200 INT 7/24 650 OC 10/1 12,700 DEP 8/9 184 21.000 11/1 CHK 17,400 DEP 8/24 1,250 DC 12/31 300 INT 9/2 les 1.800 CHIR 9/30 100 SF 12/10 1,150 CH 12/31 100 SF DEP 9/1 8/9 Daily Balance Date Amount 7/1 $15,300 7/7 14,300 7/14 2,800 7/24 2,150 8/1 35,450 14,450 8/24 12,700 9/1 26,200 9/2 24,400 9/30 24,500 10/1 37,200 11/1 54,600 12/10 53,450 12/31 $53,650 106 $ 97,400 $43,750 IMC 7 Desc. DEP Customer deposit INT Interest earned SF Service fees CHK Customer check DC Debit card After comparing the two balances, Suzie has some concern because the bank's balance of $53,650 is substantially less than the company's balance of $67.350. 3 cents 2-a. Prepare Great Adventures' bank reconciliation for the six-month period ended December 31, 2021 (Amounts to be deducted should be indicated with a minus sign. Total entries to the same account together when entering in the bank reconciliation.) swood ebook GREAT ADVENTURES, INC Bank Reconciliation December 31, 2021 Bank's Cash Balance Company's Cash Balance Per Bank Statement Per General Ledger References Bank Balance Per Reconciliation Company Balance Per Reconciliation 2-b. Record any necessary entries to adjust cash. (of no entry is required for a transaction/event, select "No Journal Entry Required" In the first account field. Total entries to the same account together when entering in the journal entry carousel) View transaction list Journal entry worksheet 1 2 > Record the amounts that increase cash. Me View transaction list Book Journal entry worksheet Print ces Record the amounts that decrease cash. Note: Enter debits before credits. General Journal Debit Credit Date Dec. 31. 2021 Record entry Clear entry View general Journal