Required information Great Adventures Problem AP2-1 (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 business activities occur during July for Great Adventures. Jul. 1 Sell $15,000 of common stock to Sukie. 1 Sell $15,000 of common stock to Tony. Jul. 1 Purchase a one-year insurance policy for $4,920 ($410 per month) to cover injuries to participants during outdoor clinics. Jul. 2 Pay legal fees of $1,980 associated with incorporation. 4 Purchase office supplies of $1,700 on account. 7 pay $280 to a local newspaper for advertising to appear inmediately for an upcoming mountain biking clinic to be held on July 15. Attendees will be charged $60 the day of the clinic. Jul. Jul. 15 on the day of the clinic, Great Adventures receives cash of $3,000 from 50 bikers. Tony conducts the Jul. 22 Because of the success of the first mountain biking clinic, Tony holds another mountain biking clinic and the company receives $3,600. 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 $140 in advance or $190 on the day of the clinic. Jul. 30 Great Adventures receives cash of $5,600 in advance from 40 kayakers for the upcoming kayak clinic. Jul. Jul. Jul. Answer is not complete. Prepaid Insurance 4,920 July 1 July 1 July 1 July 15 July 22 July 30 OO SOOO Cash 15,000 15,000 780 3,000 11,000 3,600 280 5,600 1,900 4,920 23,320 23320 July 24 July 8 July 7 July 2 July 1 End, bal 4,920 sos OOOO End. bal. Supplies 1,700 July 4 Equipment 11,000 July 8 End, bal. 1,700 End, bal 11,000 Accounts Payable 1,700 July 4 Deferred Revenue 5,600 July 30 End, bal End. bal. 5,600
