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Required information [The following information applies to the questions displayed below.] Tony and Suzie graduate from college in May 2024 and begin developing their new

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Required information [The following information applies 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 20.000 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 Se11 $10,000 of conmon stock to Suzie. July 1 Sell $10,000 of common stoek to sony. July 1 Purchase a one-year insurance policy for $3,840 (\$320 per month) to cover injuries to July 2 partieipants during outdoor elinies. Pay legal fees of $1,800 associated with incorporation. July 4 Purchase office supplies of $1,400 on account. July 7 Pay $340 to a local newspaper for advertiaing to appear inmediately for an upcoming mountain July 8 biking clinic to be held on July 15. Attendees will be charged $70 the day of the elinic. July 15 Purchase 10 mountain bikes, payling $18,200 caah. July 22 and suzie conducts the mountain biking clinic. Becaune of the success of the first nountain biking olinie, Tony and suzie holds another Pay $780 to a local radio station tor advereising to appear immodiately. A kayaking olinic will be held on August 10 , and attendees can $100 in advanee or July 24 mountain biking olinic and the company receives $3,900. be held on hugust 10 , and attendecs can pay $100 in advance or $150 on the day of the olinic. kayak clinic. The following transactions occur over the renlainder of 2024. August 1 Great Adventures obtaiss a $44,000 low-interest loan for the company from che oity council, which has recently passed an initlative encouraging business development related to outdoor activities. The loan is due in three years, and 64 annual interest is due esch year on July 31. Mhieh bas reeently passed an initiative encouraging business develogaent relaced to outdoor activities. The loan is dus in three years, and 67 annuat interest is due each yesr on July 31. August 4 The company purchases 14 kayaks, paying $25,200 cash. August 10 Tony and Suaie conduct the first kayak clinic. In addition to the $7, 000 that was received in advance froa kayakers on July 30 , the conpany recelves additional casb of \$3,000 fron tmenty new kayakera on the day of the clinie. August 17. Tony and suzie conducts a eecond kayak ciinic, and ebe conpeny receives $11,900 caah. Auguet 24 office supplies of $1,400 purchaged on July 4 are paid in ful1. septeaber 1 To provide better ntorage of mountain bikes and kayake when not in use, the campany rente a storage Bhed for ane year, paying $2,750 ( $230 per month) in advanee. Septenber 21 Tony and suzie conduct a rock-climbing clinic. The conpany receives $13,900 cabh. Oetober 17 Tony and 5uzie conduct an orienteering olinic. participanta practice how to underetand a topographical map, read an altimeter, usa a compass, and orient through heavily wooded areas. The coupany recelvea $19,700 dash. becember 1 Tony and suzie decide to hold the company' dirst adventure race on Deceaber 15. Four-peraoa teamil will race from checkpoint to checkpoint uning a combination of mountain biking, kayaking, orienteering, trail running, and rock-clinbing ekilla. The firat tean in each category to complete all eheckpoints in ordex wine. The entry fee for each tean hi 5630. December 5. To help organlae and promote the race, Tony hiren his college roonmate, Victor, Fietor vill be paid 550 in salary tor each tean that conpetes in the race. Hin salary wil1 be paid after the race. Decenber a The conpany pays $1,200 to purchase a permit from a mtate park whoro the race wilt be held. The December 12 The conpany purchases racing applien for 52,100 an account due in 30 days. Suppliea inchude trophies toe the top-finiehing teans in each oategory, promotional shirts, anack fooda and drinks toe partioipants, and field narkera to prepare the raceceurse. Decenber is The company receives 525,200 eash from a total of forty teams. and the race in held. beceaber 16 . The conpany pays Victor's salary of $2,000. Decenber 31 the eonpany pays a dividend of $4,550(52,250 te fony and 52,250 to 30 te 5 . Decenber 31 Using his peraonal money, Fony purehased a diamond ring for s5, 300, Tony aurpeises flusie by. proposing that they get married. Suzie accepta and they get marridd 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 months' of the one-year insurance policy purchesed on July 1 has expired. c. Four months of the one-year rental agreement purchased on September 1 has expired. d. Of the $1,400 of office supplies purchased on July 4,$260 remains. e. Interest expense on the $44,000 loan obtained from the city council on August 1 should be recorded. f. Of the $2,100 of racing supplies purchased on December 12, $280 remains. 9. Suzie calculates that the company owes $13,300 in income taxes Required information (1) Required information (1) Roquired information Required Information

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