Required information 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 Suzle will act as co-presidents of the company. The following transactions occur from July 1 through December 31. Jul. 1 Bell $15,000 of common stock to Susie. 1 Seli sis, of common stock to Tony Jal. 1 Purchase one-year Insurance policy for $3,600 (5300 per month to cover injuries to participants during outdoor clinics. Jul 2 Pay legal fees of $1,100 associated with incorporation. Jul. 4 Purchase office supplier of $1,000 on accoant. Jul. 7 Pay for advertising of 8260 to a local newspaper for an upcoming mountain biking cline to be held on Jul July 15. Attendees will be charged $60 a the day of the clinse. Purchase 10 mountain bikes, paying $16.700 cash. Jul 15 on the day of the clinic, Great Adventures receives cash of $3,600 from 60 bikers. Tony conducts the mountain biking clinic Jul 22 because of the success of the first mountain biking clince, Tony bolde another mountain biking clinic and the company receives 54.100. Jul 24 may $700 to local radio station for advertising to appear innediately. A kayaking cline will be meid on August 10, and attendees can pay $130 in advance or $180 on the day of the citato. Jul 30 Croat Adventures receive cash of $7.000 LB advance from 60 kayakers for the upcoming kayak elinie. hag. Great Adventures obtaina... 48.000 low-interest Toan for the company from the city council, which bas encouraging business development related to outdoor activities. The loan is due in three years, and annual interest is die sach year on July 31. Aug. The company parchases kayaka, paying $26.900 cash. Aug. 10 Twenty additional kayakers Hy $3,600 $10 each), in In addition to the $7,000 that was paid is advance on July 20, on the day of the clince. Tony conducts the first kayak elinie. Aug: cash. office supplies of $1,000 parehased on July are paid in full. Dep. 1 To provide better storage of mountain bikes and ayake when not in use, the company renta storage shed for one year, paying 33.560 $280 per month) in advance Bep: 2 Tony conduct a rock-cutting clinic. The company receives $13,300 cash Det. 17 Tony conducts an orienteering elinte. Participants practice how to understand topographical map, read an altitor, e a compass, and orient through heavily wooded areas. The company receive Dec. 1 Tony decides to hold the company first adventure race on December 15. Your person to will race fron checkpoint to checkpoint using combination of mountain biking, kayaking, orienteering, trail running, and rock-climbing skills. The first tesnis mach category to complete all checkpoints in Dec. To help organize and promote the race. Tony hires his college tomate, Victor. Victor will be paid 570 in salary for each team that compete in the race. Wie salary will be paid after the race. 8 The company pays 91,700 to purchase a permis from a state park where the race will be held. The at is recorded miscellanexpense Dec. 12 The company purchase thing wupplies for $2,800 on decount due in 30 days. Supplies include trophies for the top-Finishing teams in each category, promotional shirts, snack foods and drinks for Dec. 15 The company receives $24,000 cash from a total of forty tems, and the race to hold Dec. 16 The company pays Victoria salary of $2,00. Dec 31 The company pays dividend of $4,700 (12,350 to Tony and 52,350 to susie). Dec. 31 Dinghie personal money. Tony purchases diamond ring for $4.000. Tony surprise fute by proposing that they get married. Susie accepts and they get married The following information relates to year-end adjusting entries as of December 31, 2021 a Depreciation of the mountain bikes purchased on July 8 and kayaks purchased on August 4 totals $8.900 6. Six months 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 $1000 of office supplies purchased on July 4, $200 remains e Interest expense on the $48,000 loan obtained from the city council on August 1 should be recorded for the $2.800 of racing supplies purchased on December 12. $210 remains Suzie calculates that the company owes $13,800 in income taxes bee.