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Great Adventures Problem AP2-1

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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, theyll 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 39,000 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 business activities occur during July for Great Adventures.

Jul.		1		Sell $19,500 of common stock to Suzie.
Jul.		1		Sell $19,500 of common stock to Tony.
Jul.		1		Purchase a one-year insurance policy for $5,640 ($470 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 $1,400 on account.
Jul.		7		Pay $210 to a local newspaper for advertising to appear immediately for an upcoming mountain biking clinic to be held on July 15. Attendees will be charged $50 the day of the clinic.
Jul.		8		Purchase 10 mountain bikes, paying $10,300 cash.
Jul.		15		On the day of the clinic, Great Adventures receives cash of $3,500 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 $4,000.
Jul.		24		Pay $780 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 $6,600 in advance from 60 kayakers for the upcoming kayak clinic.

X Answer is not complete. Prepaid Insurance 5,640 July 1 July 1 July 1 July 15 July 22 July 30 Cash 19,500 19,500 3,500 4,000 6,600 5,640 July 1 1,700 July 2 210 July 7 10,300 July 8 End, bal 5,640 End. bal. 35,250 x Supplies 1,400 Equipment 10,300 July 4 July 8 End, bal 1,400 End. bal 10,300 Accounts Payable 1,400 July 4 Deferred Revenue 6,600 July 30 End. bal. 1,400 End. bal. 6,600 Common Stock 19,500 July 1 19,500 July 1 Service Revenue 3,500 July 15 4,000 July 22 End. bal. 39,000 End. bal. 7,500 Legal Fees Expense 1,700 Advertising Expense 210 780 July 2 July 7 July 24 End. bal. 990 End, bal 1,700