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 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. July 1 July 1 July 1 July 2 July 4 July 7 July 8 July 15 July 22 July 24 Sell $19,500 of common stock to Suzie. Sell $19,500 of common stock to Tony. Purchase a one-year insurance policy for $4,320 ($360 per month) to cover injuries to participants during outdoor clinics. Pay legal fees of $1,900 associated with incorporation. Purchase office supplies of $1,500 on account. Pay $280 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. Purchase 10 mountain bikes, paying $12,200 cash. On the day of the clinic, Great Adventures receives cash of $3,500 in total from 70 bikers. Tony and Suzie conducts the mountain biking clinic. Because of the success of the first mountain biking clinic, Tony and Suzie holds another mountain biking clinic and the company receives $4,050. Pay $720 to a local radio station for advertising to appear immediately. A kayaking clinic will be held on August 10, and attendees can pay $100 in advance or $150 on the day of the clinic. July 301 The following transactions occur over the remainder of 2024. Great Adventures receives total cash of $6,000 in advance from 60 kayakers for the upcoming kayak clinic.. August 1 Great Adventures obtains a $41,000 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 6% annual interest is due each year on July 31. me Project Saved August 1 August 4 August 10 August 17 August 24 Great Adventures obtains a $41,000 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 6% annual interest is due each year on July 31. The company purchases 14 kayaks, paying $16,900 cash. Tony and Suzie conduct the first kayak clinic. In addition to the $6,000 that was received in advance from kayakers on July 30, the company receives additional cash of $3,000 from twenty new kayakers on the day of the clinic. Tony and Suzie conducts a second kayak clinic, and the company receives $12,300 cash. Office supplies of $1,500 purchased on July 4 are paid in full. September 1 To provide better storage of mountain bikes and kayaks when not in use, the company rents a storage shed for one year, paying $4,440 ($370 per month) in advance. September 21 Tony and Suzie conduct a rock-climbing clinic. The company receives $15,000 cash. October 17 December 1 December 5 December 8 Tony and Suzie conduct an orienteering clinic. Participants practice how to understand a topographical map, read an altimeter, use a compass, and orient through heavily wooded areas. The company receives $18,800 cash. Tony and Suzie decide to hold the company's first adventure race on December 15. Four-person teams will race from checkpoint to checkpoint using a combination of mountain biking, kayaking, orienteering, trail running, and rock climbing skills. The first team in each category to complete all checkpoints in order wins. The entry fee for each team is $620. To help organize and promote the race, Tony hires his college roommate, Victor. Victor will be paid $50 in salary for each team that competes in the race. His salary will be paid after the race... The company pays $1,500 to purchase a permit from a state park where the race will be held. The amount is recorded as a miscellaneous expense. December 12 The company purchases racing supplies for $2,700 on account due in 30 days. Supplies include trophies for the top-finishing teams in each category, promotional shirts, snack foods and drinks for participants, and field markers to prepare the racecourse. December 15 December 16 December 31 The company receives $24,800 cash from a total of forty teams, and the race is hold. The company pays Victor's salary of $2,000. The company pays a dividend of $3,600 ($1,800 to Tony and $1,800 to Suzie). December 31 Using his personal money, Tony purchases a diamond ring for $3,700. 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 $7500. b. 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 $1,500 of office supplies purchased on July 4, $350 remains. e. Interest expense on the $41,000 loan obtained from the city council on August 1 should be recorded. 1 Of the $2,700 of racing supplies purchased on December 12, $250 remains. 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 $7,500. b. 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 $1,500 of office supplies purchased on July 4, $350 remains. e. Interest expense on the $41,000 loan obtained from the city council on August 1 should be recorded. f. Of the $2,700 of racing supplies purchased on December 12, $250 remains. g. Suzie calculates that the company owes $13,500 in income taxes. 5. For the period July 1 to December 31, 2024, prepare an income statement, statement of stockholders' equity and classified bala sheet. Complete this question by entering your answers in the tabs below. Income Statement Stmt of Stockholders Balance Sheet Equity For the period July 1 to December 31, 2024, prepare an income statement. GREAT ADVENTURES, INCORPORATED Income Statement December 31, 2024 Revenues. Total Revenues Revenues: Total Revenues Expenses GREAT ADVENTURES, INCORPORATED Income Statement December 31, 2024 $ 0 0 Total Expenses $ 0 Stmt of Income Statement Stockholders Balance Sheet Equity For the period July 1 to December 31, 2024, prepare a statement of stockholders' equity. All accoun zero. GREAT ADVENTURES, INCORPORATED Statement of Stockholders' Equity For the Period Ended December 31, 2024 Common Stock Retained Earnings Total Stockholders' Equity Stmt of Income Statement Stockholders Balance Sheet Equity Prepare a classified balance sheet as of December 31, 2024. (Amounts to be deducted should be indicated by a minus sign.) GREAT ADVENTURES, INCORPORATED Assets Current Assets: Balance Sheet December 31, 2024 Liabilities Current Liabilities Total Current Liabilities 0 Total Current Assets 0 Total Liabilities 0 Long-term Assets Stockholders' Equity Retained Eamings Common Stock Total Stockholders' Equity 0 Total Assets $ 0 Total Liabilities and Stockholders' Equity $ 0 Stmt of Stockholders Equity Balance Sheet uired information w transaction list ournal entry worksheet 1 2 3 Sell $19,500 of common stock to Suzie. Note: Enter debits before credits. Date July 01 Cash Common Stock 5 6 8 27 General Journal Debit Credit 19,500 19,500 Record entry Clear entry View general journal Prey 1 2 3 Sm 9 7 of 7 equired information iew transaction list Journal entry worksheet 2 3 Sell $19,500 of common stock to Tony. Note: Enter debits before credits. Date July 01 Cash Common Stock 5 6 8 27 General Journal Debit Credit 19,500 19,500 View general journal Record entry Clear entry Prev 1 2 3 83 7 of 7 equired information ew transaction list Journal entry worksheet < 2 3 5 8 27 **** Purchase a one-year insurance policy for $4,320 ($360 per month) to cover injuries to participants during outdoor clinics. Note: Enter debits before credits. Date July 01 General Journal Debit Credit Prepaid Insurance 4,320 Cash 4,320 Record entry Clear entry View general journal Prev 1 2 3 8m 7 of 7 equired information iew transaction list Journal entry worksheet < 1 2 3 4 5 6 8 27 Pay legal fees of $1,900 associated with incorporation. Note: Enter debits before credits. Date July 02 General Journal Debit Credit Legal Fees Expense 1,900 Cash 1,900 View general journal Record entry Clear entry 9 Prev 1 2 3 7 of 7 equired information iew transaction list Journal entry worksheet < 2 3 5 6 7 8 27 Purchase office supplies of $1,500 on account. Note: Enter debits before credits. Date July 04 General Journal Debit Credit Supplies (Office) 1,500 Accounts Payable 1,500 Record entry Clear entry View general journal 9 < Prev 1 2 3 7 of 7 Lequired information View transaction list Journal entry worksheet 2 3 5 6 7 8 27 Pay $280 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. Note: Enter debits before credits. Date July 07 General Journal Debit Credit Advertising Expense 280 Cash 280 Record entry Clear entry View general journal Prev 1 2 3 83 7 of 7 quired information ew transaction list Journal entry worksheet < 1 2 3 5 6 7 8 27 Purchase 10 mountain bikes, paying $12,200 cash. Note: Enter debits before credits. Date July 08 General Journal Debit Credit Equipment (Bikes) 12,200 Cash 12,200 Record entry Clear entry View general journal 9 Prev 1 2 3 7 of 7 Cequired information View transaction list Journal entry worksheet 2 3 6 8 **** 27 On the day of the clinic, Great Adventures receives cash of $3,500 in total from 70 bikers. Tony and Suzie conducts the mountain biking clinic. Note: Enter debits before credits. Date July 15 General Journal Debit Credit Cash 3,500 Service Revenue (Clinic) 3,500 Record entry Clear entry View general journal 9 < Prev 1 2 3 7 of 7 Required information Wiew transaction list Journal entry worksheet < 1 5 8 9 27 Because of the success of the first mountain biking clinic, Tony and Suzie holds another mountain biking clinic and the company receives $4,050. Note: Enter debits before credits. Date July 22 General Journal Debit Credit Cash 4,050 Service Revenue (Clinic) 4,050 Record entry Clear entry View general journa B Prev 1 2 3 8m 7 of 7 Required information Wiew transaction list Journal entry worksheet < 6 7 8 10 27 Pay $720 to a local radio station for advertising to appear immediately. A kayaking clinic will be held on August 10, and attendees can pay $100 in advance or $150 on the day of the clinic. Note: Enter debits before credits. Date July 24 General Journal Debit Credit Advertising Expense 720 Cash 720 Record entry Clear entry View general journal Prev 1 2 3 7 of 7 Required information View transaction list Journal entry worksheet < 6 7 8 10 11 27 Great Adventures receives total cash of $6,000 in advance from 60 kayakers for the upcoming kayak clinic. Note: Enter debits before credits. Date July 30 General Journal Debit Credit Cash 6,000 Deferred Revenue 6,000 Record entry Clear entry View general journal < Prev 1 2 3 7 of 7 quired information ew transaction list Journal entry worksheet < 8 9 10 11 12 27 Great Adventures obtains a $41,000 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 6% annual interest is due each year on July 31. Note: Enter debits before credits. Date August 01 Cash Notes Payable General Journal Debit Credit 41,000 41,000 Record entry Clear entry View general journal 9 Prev 12 3 7 of 7 quired information ew transaction list Journal entry worksheet < 1 8 9 10 11 12 The company purchases 14 kayaks, paying $16,900 cash. Note: Enter debits before credits. 13 13 27 Date August 04 General Journal Debit Credit Equipment (Kayaks) 16,900 Cash 16,900 Record entry Clear entry View general journal Prev 1 2 3 7 of 7 Required information View transaction list Journal entry worksheet < 9 10 11 12 13 14 27 Tony and Suzie conduct the first kayak clinic. In addition to the $6,000 that was received in advance from kayakers on July 30, the company receives additional cash of $3,000 from twenty new kayakers on the day of the clinic. Note: Enter debits before credits. Date August 10 General Journal Deferred Revenue Cash Service Revenue (Clinic) Debit Credit 6,000 3,000 9,000 Record entry Clear entry View general journal < Prev 1 2 3 7 of 7 Required information View transaction list Journal entry worksheet 10 11 12 13 14 15 27 Tony and Suzie conducts a second kayak clinic, and the company receives $12,300 cash. Note: Enter debits before credits. General Journal Debit Credit 12,300 12,300 Date August 17 Cash Service Revenue (Clinic) Record entry Clear entry View general journa Prev 12 3 8m 7 of 7 Required information View transaction list Journal entry worksheet < 11 12 13 14 15 16 27 Office supplies of $1,500 purchased on July 4 are paid in full. Note: Enter debits before credits. Date August 24 General Journal Debit Credit Accounts Payable 1,500 Cash 1,500 Record entry Clear entry View general journa Prev 1 2 8m 7 of 7 Required information View transaction list Journal entry worksheet 12 **** 13 14 15 16 17 To provide better storage of mountain bikes and kayaks when not in use, the company rents a storage shed for one year, paying $4,440 ($370 per month) in advance. Note: Enter debits before credits. 27 Date General Journal Debit Credit September 01 Prepaid Rent 4,440 Cash 4,440) Record entry Clear entry View general journa Required information View transaction list Journal entry worksheet < 13 14 15 16 17 18 27 Tony and Suzie conduct a rock-climbing clinic. The company receives $15,000 cash. Note: Enter debits before credits. General Journal Debit Credit 15,000 15,000 Date September 21 Cash Service Revenue (Clinic) View general journa Record entry Clear entry 9 Prev 1 2 3 7 of A Required information View transaction list Journal entry worksheet < 1 14 15 16 17 18 19 27 Tony and Suzie conduct an orienteering clinic. Participants practice how to understand a topographical map, read an altimeter, use a compass, and orient through heavily wooded areas. The company receives $18,800 cash. Note: Enter debits before credits. Date October 17 General Journal Cash Service Revenue (Clinic) Debit Credit 18,800 18,800 Record entry Clear entry View general journal 9 Prev 1 2 3 7 of 7 Required information View transaction list Journal entry worksheet < 15 16 17 18 19 20 20 27 Tony and Suzie decide to hold the company's first adventure race on December 15. Four-person teams will race from checkpoint to checkpoint using a combination of mountain biking, kayaking, orienteering, trail running, and rock-climbing skills. The first team in each category to complete all Note: Enter debits before credits. Date General Journal December 01 No Journal Entry Required Debit Credit View general journ Record entry Clear entry < Prev 1 2 3 7 of. View transaction list Journal entry worksheet < 16 17 18 19 20 21 21 27 To help organize and promote the race, Tony hires his college roommate, Victor. Victor will be paid $50 in salary for each team that competes in the race. His salary will be paid after the race. Note: Enter debits before credits. Date General Journal Debit Credit December 05 No Journal Entry Required View general journa Record entry Clear entry Prev 1 2 3 8m 7 of 7 View transaction list Journal entry worksheet < 16 17 18 19 20 21 21 27 To help organize and promote the race, Tony hires his college roommate, Victor. Victor will be paid $50 in salary for each team that competes in the race. His salary will be paid after the race. Note: Enter debits before credits. Date General Journal Debit Credit December 05 No Journal Entry Required View general journa Record entry Clear entry Prev 1 2 3 8m 7 of 7 equired information "iew transaction list Journal entry worksheet < 17 18 19 20 21 22 22 27 The company pays $1,500 to purchase a permit from a state park where the race will be held. The amount is recorded as a miscellaneous expense. Note: Enter debits before credits. Date General Journal Debit Credit December 08 Miscellaneous Expense 1,500 Cash 1,500 Record entry Clear entry View general journal Prev 1 2 3 8m 7 of 7 equired information iew transaction list Journal entry worksheet < 18 19 20 21 22 23 23 27 The company purchases racing supplies for $2,700 on account due in 30 days. Note: Enter debits before credits. Date General Journal Debit Credit December 12 Supplies (Racing) 2,700 Accounts Payable 2,700 View general journal Record entry Clear entry 9 Prev 1 2 3 Sm of 7 quired information ew transaction list Journal entry worksheet < 1 19 20 21 22 22 23 24 24 27 The company receives $24,800 cash from a total of forty teams, and the race is held. Note: Enter debits before credits. General Journal Debit Credit 24,800 24,800 Date December 15 Cash Service Revenue (Racing) Record entry Clear entry View general journal 9 Prev 1 2 3 7 of 7 Required information View transaction list Journal entry worksheet < 20 21 22 23 24 25 25 The company pays Victor's salary of $2,000. Note: Enter debits before credits. 27 Date General Journal Debit Credit December 16 Salaries Expense 2,000 Cash 2,000 Record entry Clear entry View general journal 9 Prev 1 2 3 7 of 7 Information Wiew transaction list Journal entry worksheet < 1 20 21 22 23 24 25 26 27 The company pays a dividend of $3,600 ($1,800 to Tony and $1,800 to Suzie). Note: Enter debits before credits. Date General Journal Debit Credit December 31 Dividends 3,600 Cash 3,600 Record entry Clear entry View general journall 9 Prev 123 7 of 7 Cequired information View transaction list Journal entry worksheet < 20 21 22 23 24 25 26 27 27 Using his personal money, Tony purchases a diamond ring for $3,700. Tony surprises Suzie by proposing that they get married. Suzie accepts and they get married! Note: Enter debits before credits. Date General Journal Debit Credit December 31 No Journal Entry Required Record entry Clear entry View general journal S Prev 1 2 3 7 of 7