Required information [The following information applics to the questions displayed below] Tony and Suzie graduate from college in May 2024 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, 2024, Tony and Suzie organize their new company as a corporation, Great Adventures Incorporated The articles of incorporation state that the corporation will sell 34,000 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 July 1 Sell $17,060 of common stock to Suzie. July 1 Sell $17,000 of common stock to Tony. July 1 Purchase a one-year insurance policy for $4,448 ( $370 per nonth) to cover injurles to participants during outdoor clinics. Pay legal fees of $1,400 associated with incorporation. Purchase office supplies of $1,700 on account. Juty 7 Pay $300 to a local newspaper for advertising to appear imnediately for an upcoming mountain biking clinic to be held on July 15 . Attendees will be charged $50 the day of the clinic. July 22 and Suzie conducts the nountain biking clinic, Because of the success of the first mountain biking clinic, Tony and Suzie holds another July 24 Pay $750 to a local radio station for advertising to appear imnediately. A kayaking clinic will be held on August 10 , and attendees can pay $100 in advance or $150 on the day of the clinic. Great Adventures receives total cash of $7,000 in advance from 70 kayakers for the upcoming kayak clinic. \begin{tabular}{|l|l|l|l|} \hline \multicolumn{3}{|c|}{ Income Tax Expense } \\ \hline Deginning Balance & & & \\ \hline & & & \\ \hline & & & \\ \hline Ending Balance & 0 & & \\ \hline \end{tabular} kayak ctinic. The following transactions occur over the remainder of 2024. August 1 Great Adventures obtains a $42,000 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 65 annual interest is due each year on Juty 31. August: 4 August 10 August 17 August 24 September 1 Septenber 21 October 17 Decenber 1 Decenber 5 Decenber 8 necember 1 ? Decetber 15 Decenber 16 Decenber 31 Decenber 31 The company purchases 14 kayaks, paying $19,500 cash. Tony and Suzie conduct the first kayak clinic. In addition to the $7,000 that was received in advance fron kayakers on July 30 , the company receives additional cash of $3, e00 from twenty new kayakers on the day of the cinic. Tony and Suzie conducts a second kayak clinic, and the company receives $12,500 cash. office supplies of $1,700 purchased on July 4 are paid in full. To provide better storage of eountain bikes and kayaks when not in use, the company rents a storage shed for one year, paying $3,480 ( $290 per month) in advance. Tony and suzie conduct a rock-clinbing clinic. The company receives $13,600 cash. Tony and Suzie conduct an orienteering clinic. Participants practice how to understand a topographical nap, read an altimeter, use a compass, and orient through heavily wooded areas. The company receives $18,600 cash. Tony and Suzie decide to hold the conpany's first adventure race on Decenber 15. Four-person teans will race trom checkpoint to checkpoint using a combination of mountain biking, kayaking, orienteering, trail running, and rock-climbing skills. The first tean in each category to cooplete all' checkpoints in order wins. The entry fee for each tean is $690. To help organize and promote the race, Tony hires his college roonnate, victor. Victor will be paid $50 in satary for each team that competes in the race. His salary will be paid after the race. The company pays $1,208 to purchase a pernit fron a state park where the race will be held. The amount is recorded as a miscellaneous expense. The company purchases racing supplies for $2,400 on account due in 302 days. Supplies include trophies for the top-finishing teans in each category, promotional shirts, snack foods and drinks for participants, and field markers to prepare the racecourse. The company receives $27,600 cash from a total of forty teams, and the race is held. The company pays Victor's salary of $2,000. The coepany pays a dividend of $4,700($2,350 to Tony and $2,350 to 5uz1e). Using his personal money. Tony purchases a diamond ring for $4,200. 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, 2024. a. Depreciation of the mountain bikes purchased on July 8 and kayaks purchased on August 4 totals $7,600. b. Six month' 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 $1,700 of office supplies purchased on July 4,$360 remains. e. Interest expense on the $42,000 loan obtained from the city council on August 1 should be recorded. f. Of the $2,400 of racing supplies purchased on December 12,$180 remains. 9. Suzie calculates that the company owes $13,200 in income taxes