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 26,000 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 Sell $13,000 of common stock to Soale. Jul. 1 Sell 613,000 of common stock to Tony. 1 Purchase a one-year insurance policy for $5,200 (5440 per month) to cover injuries to participants during outdoor clinics. 2 ray legal fees of $1,100 associated with incorporation Jul. 4 Purchase office supplies of $1,200 on account. Jul 7 pay for advertising of $320 to a local newspaper for an upcoming mountain biking elinte to be held on July 15. Attendees will be charged 560 on the day of the clinic. Jul # Purchase 10 mountain bikes, paying $12,200 cash. Jul 15 on the day of the clinic, Great Adventures receives cash of $4,200 from 70 bikers. Tony conducts the mountain biking clinic. Jul. 22 because of the success of the first mountain biking clinic, Tony holds another mountain biking clinic and the company receives 54,800. Jul. Jul. Jul. 24 Pay $860 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. Jul. 30 Great Adventures receives cash of $5,000 in advance from 50 kayakers for the upcoming kayak clinic. Aug. 1 Great Adventures obtain a $43,000 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 annual interest is due each year on July 31. Aug. 4 The company purchases 14 kayaks, paying $11,000 cash. Aug. 10 Twenty additional kayakers pay $3,000 ($150 each), in addition to the $5,000 that was paid in advance on July 30, on the day of the clinie. Tony conducts the first kayak elinie. Aug. 17 Tony conducts a second kayak elinie, and the company receives $12,100 canh. Aug. 24 office supplies of $1,200 purchased on July 4 are paid in full. Sep. 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 (5370 per month) in advance. Sep. 21 Tony conducts a rock-climbing elinie. The company receives $14,200 cash. Oct. 17 Tony conducts an orienteering clinie. Participants practice how to understand a topographical map. read an altimeter, use a compass, and orient through heavily wooded areas. The company receives $18,000 cash. Dec. 1 Tony decides to hold the company's first adventure race on December 15. Your-person teams will race fron 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 $520. Dec. 5 To help organize and promote the race, Tony hires his college roommate, Vietor. Vietor will be paid $70 in salary for each team that competes in the race. Wie salary will be paid after the race. Doo. The company pays $1,900 to purchase a permit fron a state park where the race vill be held. The amount is recorded as a miscellaneous expense. Dec. 12 The company purchases racing supplies for $2,300 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 Dec 15. The company receives $20,800 cash from a total of forty teams, and the race is held. Dec. 16 The company pays Victor's salary of $2,800. Dec. 31 The company pays a dividend of $4,500 ($2,250 to Tony and $2,250 to Suzie). Dec, 01 Uning his personal money, Tony purchases a diamond ring for $4,700. Tony surprises Suzie by proposing that they get married. Suzie accepta 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 $7,800. 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 $1,200 of office supplies purchased on July 4, $360 remains. e. Interest expense on the $43,000 loan obtained from the city council on August 1 should be recorded. f. Of the $2,300 of racing supplies purchased on December 12, $150 remains. g. Suzie calculates that the company owes $13,800 in income taxes. 4. Prepare an adjusted trial balance as of December 31, 2021. GREAT ADVENTURES, Inc. Adjusted Trial Balance December 31, 2021 Accounts Debit Credit Cash Prepaid Insurance Prepaid Rent Supplies (Office) Supplies (Racing) Equipment (Bikes) Equipment (Kayaks) Accumulated Depreciation Accounts Payable Income Tax Payable Interest Payable Notes Payable Common Stock Dividends Service Revenue (Clinic) Service Revenue (Racing) Advertising Expense Depreciation Expense Income Tax Expense Insurance Expense Interest Expense Legal Fees Expense Miscellaneous Expense Rent Expense Salries Expense Supplies Expense (Office) Supplies Expense (Racing) Totals $ 0 $ 0 Stmt of Income Statement Stockholders Balance Sheet Equity For the period July 1 to December 31, 2021, prepare an income statement. GREAT ADVENTURES, Inc. Income Statement December 31, 2021 Revenues: Total Revenues Expenses: 0 Total Expense 0 0 Incomo SH L. FUU HURUS ULLE VITE-year na ay cemu pulau Sepete to Capicu. d. Of the $1,200 of office supplies purchased on July 4, $360 remains. e. Interest expense on the $43,000 loan obtained from the city council on August 1 should be recorded. f. Of the $2,300 of racing supplies purchased on December 12, $150 remains 9. Suzie calculates that the company owes $13,800 in income taxes. 5. For the period July 1 to December 31, 2021, prepare an income statement, statement of stockholders' equity and classified balance 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, 2021, prepare a statement of stockholders' equity. All account balances on July 1 were zero. GREAT ADVENTURES, Inc. Statement of Stockholders' Equity For the Period Ended December 31, 2021 Common Stock Retained Earnings Balance at July 1 issuance of Common Stock 26,000 Net Income for 2021 Dividends Balance at December 31 $ 26,000 Total Stockholders Equity 26,000 Income Statement Balance Sheet > 5. For the period July 1 to December 31, 2021, prepare an income statement, statement of stockholders' equity and classified balance sheet Complete this question by entering your answers in the tabs below. Stmt of Income Statement Stockholders Balance Sheet Equity Prepare a classified balance sheet as of December 31, 2021. (Amounts to be deducted should be indicated by a minus sign.) GREAT ADVENTURES, Inc. Balance Sheet December 31, 2021 Assets Liabilities Current Assets Current Liabilities: Total Current Liabilities 0 0 Total Current Assets Long-term assets Total Liabilities Stockholders' Equity 0 Total Stockholders' Equity Total Liabilities and Stockholders' Equity $ Total Assets 0 $ O C Stmt of Stockholders Equity fance 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 vins. The entry fee for each team is 5520. Dec. 5 To help organize and promote the race, Tony Nice his college roommate, Vietor. Victor will be paid $70 in salary for each team that competes in the race. His salary will be paid after the race. Ded 8 The company pays $1,900 to purchase a permit from a state park where the race will be held. The amount is recorded as a miscellaneous expense. Dec. 12 The company purchases racing supplies for $2,300 on account due in 30 days. Supplies include trophies for the top-tinishing teams in each category, promotional shirts, snack foods and drinks for participants, and field markers to prepare the racecourse Dec. 15 The company receives $20,800 cash from a total of forty tears, and the race is held. Dec. 16. The company pays Victor's salary of $2,800. Dec.31 The company pays a dividend of $4,500 ($2,250 to Tony and $2,250 to Sunie). Dec.31 Uning his personal money. Tony purchases diamond ring for 54,700. Tony surprises Buste by proposing that they get married. soate accepts and they got 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 $7,800. 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 $1.200 of office supplies purchased on July 4, $360 remains e. Interest expense on the $43,000 loan obtained from the city council on August 1 should be recorded. of the $2,300 of racing supplies purchased on December 12, $150 remains 9. Suzie calculates that the company owes $13,800 in income taxes. 7. Post the closing entries of retained earnings to the account Retained Earnings Beg Bal End. Bal 8. Prepare a post-closing trial balance as of December 31, 2021. Credit GREAT ADVENTURES, Inc. Post-closing Trial Balance December 31, 2021 Accounts Debit Cash Prepaid Insurance Prepaid Rent Supplies (Office) Supplies (Racing) Equipment (Bikes) Equipment (Kayaks) Accumulated Depreciation Accounts Payable Income Tax Payable Interest Payable Notes Payable Common Stock Retained Earnings Dividends Service Revenue (Clinic) Service Revenue (Racing) Advertising Expense Depreciation Expense Income Tax Expense Insurance Expense Interest Expense Legal Fees Expense Miscellaneous Expense Rent Expense Salries Expense Supplies Expense (Office) Supplies Expense (Racing) Totals 0 0 - No Date General Journal Debit Credit 1 Jul 01, 2021 Cash Common Stock 13.000 13,000 2 Jul 01, 2021 Cash Common Stock 13,000 13,000 3 Jul 01, 2021 Prepaid Insurance Cash 5.280 5,280 2 4 Jul 02, 2021 Legal Fees Expense Cash 1,700 1,700 NO 5 Jul 04, 2021 1,200 Supplies (Office) Accounts Payable 1,200 I 6 Jul 07. 2021 320 Advertising Expense Cash 320 NO 7 Jul 08, 2021 12,200 Equipment (Bikes) Cash 12,200 8 Jul 15, 2021 4,200 Cash Service Revenue (Clinic) 4.200 9 Jul 22. 2021 Cash 4,800 Service Revenue (Clinic) 4.800 2 10 Jul 24, 2021 860 Advertising Expense Cash 860 11 Jul 30, 2021 5,000 Cash Deferred Revenue 5,000 S 1 Dr F NA 12 Aug 01, 2021 Cash Notes Payable 43,000 43,000 13 Aug 04, 2021 Equipment (Kayaks) Cash 11,000 11,000 14 Aug 10, 2021 Cash Deferred Revenue Service Revenue (Clinic) 3,000 5,000 8,000 15 Aug 17, 2021 12,100 Cash Service Revenue (Clinic) 12,100 16 Aug 24, 2021 Accounts Payable Cash 1,200 1,200 2 17 Sep 01, 2021 4,440 Prepaid Rent Cash 4,440 18 Sep 21, 2021 Cash Service Revenue (Clinic) 14,200 14,200 19 Oct 17, 2021 Cash Service Revenue (Clinic) 18,000 18,000 20 Dec 01, 2021 No Journal Entry Required 21 Dec 05, 2021 No Journal Entry Required 22 Dec 08, 2021 1,900 Miscellaneous Expense Cash 1,900 23 Dec 12, 2021 Supplies (Racing) Accounts Payable 2,300 2,300 24 Dec 15, 2021 Cash 20.800 16 Aug 24, 2021 Accounts Payable Cash 1,200 1,200 17 Sep 01, 2021 Prepaid Rent Cash 4,440 4.440 18 Sep 21, 2021 14,200 Cash Service Revenue (Clinic) 14,200 19 Oct 17, 2021 18,000 Cash Service Revenue (Clinic) 18,000 20 Dec 01, 2021 No Journal Entry Required 21 Dec 05, 2021 No Journal Entry Required 7 22 Dec 08, 2021 1,900 Miscellaneous Expense Cash 1,900 23 Dec 12, 2021 Supplies (Racing) Accounts Payable 2,300 2.300 24 Dec 15, 2021 20,800 Cash Service Revenue (Racing) 20,800 hy 25 Dec 16, 2021 2,800 Salaries Expense Cash 2.800 26 Dec 31, 2021 4,500 Dividends Cash 4,500 27 Dec 31, 2021 No Journal Entry Required 2. Record adjusting entries as of December 31, 2021. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View Journal entry worksheet ta No Date Credit General Journal Depreciation Expense Accumulated Depreciation Dec 31, 2021 Debit 7,800 7,800 2 Dec 31, 2021 2,640 Insurance Expense Prepaid Insurance 2,640 3 Dec 31, 2021 1,480 Rent Expense Prepaid Rent 1,480 7 4 Dec 31, 2021 840 Supplies Expense (Office) Supplies (Office) 840 5 Dec 31, 2021 Interest Expense Interest Payable 1,075 1,075 6 Dec 31, 2021 2,150 Supplies Expense (Racing) Supplies (Racing) 2,150 7 Dec 31, 2021 Income Tax Expense Income Tax Payable 13,800 13,800