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 trall 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 33,000 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 business activities occur during July for Great Adventures. Juty 1 Sell $16,500 of comnon stock to Suzie. July 1 Sell $16,500 of common stock to Tony. July 1 Purchase a one-year insurance policy for $5,160 ( $430 per month) to cover injuries to July 2 Pay legal fees of $1,300 associated with incorporation. July 4 Purchase office supplies of $1,700 on account. July 7 Pay $260 to a local newspaper for advertising to appear imnediately for an upconing mountain Juty8July15PikingetinictobeheldonJuly15.Attendeeswitlbecharged$60thedayoftheclinic.Purchmountainbikes,paying$14,600cash. Juty 15 On the day of the clinic, Great Adventures rece July 22 Because of the success of the first mountain biking clinic, Tony and Suzie holds another July 24 Pay $760 to a local radio station for advertising to appear innediately. A kayaking clinic witl juty 30 be hetd on August 10 , and attendees can pay $110 in advance or $160 on the day of the clinic. The following transectices The fottowing transactions occur over the remainder of 2024, toan for the conpany from the city councit, Great Adventures obtains a $47,600 tow-interest toan roe the tompany iros the city council, activities. The loan is due in three years, and 6t annual interest is due each year on july 31. August 4 The conpany purchases 14 kayaks, paying 516,800 cash. August 10 Tony and Suzie conduct the first kayak clinic. In addition to the 54,400 that was received in advance fron kavakers on Jutv 30 . the conoany receives additional cash of $3.290 fron twenty ned Ine toklowing transactions occur over the renainder of 04. August 1 Great Adventures obtains a $47,000 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 68 annual interest is due each year on July 31. August 4 The company purchases 14 kayaks, paying $16,800cash. August 10 Tony and Suzie conduct the first kayak clinic. In addition to the $4,400 that was received in advance from kayakers on July 30 , the company receives additional cash of $3,200 from twenty ned kayakers on the day of the clinic. August 17 Tony and Suzie conducts a second kayak clinic, and the company receives $11,700 cash. August 24 office supplies of $1,700 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 September 21. Storage shed for one year, paying $4,560 (\$380 per month) in advance. September 21 Tony and Suzie conduct a rock-climbing clinic. The company receives $14,600 cash. Tony and Suzie conduct an orienteering clinic. Participants practice how to understand a topographical aap, read an altimeter, use a conpass, and orient through heavily wooded areas. December 1 The conpany receives $18,200 cash. Tony and Suzie decide to hold the company's first adventure race on December 15 . Four-person teans will race from checkpoint to checkpoint using a combination of rountain biking, kayaking, orienteering, tratl running, and rock-climbing 5kills. The first tean in each category to complete ali checkpoints in order wins. The entry fee for each tean is $560. December 5 To help organize and pronote the race, Tony hires his college roomate, Victor. Victor will be paid 560 in salary for each team that competes in the race. His salary witl be paid after the December B. The company pays $1,500 to purchase a permit fron a state park where the race witl be held. The amount is recorded as a miscellaneous expense. Decesber 12 The company purchases racing supplies for $2,400 on account due in 30 days. Supplies inctude trophies for the top-finishing teams in each category, promotional shirts, snack foods and drinks for participants, and fleld markers to pjepare the racecourse. Decenber 15 The company receives $22,400 cash from a total of forty teans, and the race is held. December 16 The company pays Victor's 5a lary of $2,400. December 31 The company pays a dividend of $4,400($2,200 to Tony and $2,200 to Suzie). Decenber 31 using his personal money, Tony purchases a dianond ring for $5,400. 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 $9,000. 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 $1,700 of office supplies purchased on July 4,$380 remains. e. Interest expense on the $47,000 loan obtained from the city council on August 1 should be recorded. f. Of the $2,400 of racing supplies purchased on December 12,$170 remains. g. Suzie calculates that the company owes $14,200 in income taxes. 5. For the period July 1 to December 31, 2024, prepare an income statement, statement of stockholders' equity and classified baland sheet. Complete this question by entering your answers in the tabs below. For the period July 1 to December 31,2024 , prepare an income statement. \begin{tabular}{|l|l|} \hline & \end{tabular} For the period July 1 to December 31,2024 , prepare a statement of stockholders' equity. All account balances on July 1 were zero. Complete this question by entering your answers in the tabs below. Prepare a classified balance sheet as of December 31, 2024. (Amounts to be deducted should be indicated by a minus sign.) 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 trall 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 33,000 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 business activities occur during July for Great Adventures. Juty 1 Sell $16,500 of comnon stock to Suzie. July 1 Sell $16,500 of common stock to Tony. July 1 Purchase a one-year insurance policy for $5,160 ( $430 per month) to cover injuries to July 2 Pay legal fees of $1,300 associated with incorporation. July 4 Purchase office supplies of $1,700 on account. July 7 Pay $260 to a local newspaper for advertising to appear imnediately for an upconing mountain Juty8July15PikingetinictobeheldonJuly15.Attendeeswitlbecharged$60thedayoftheclinic.Purchmountainbikes,paying$14,600cash. Juty 15 On the day of the clinic, Great Adventures rece July 22 Because of the success of the first mountain biking clinic, Tony and Suzie holds another July 24 Pay $760 to a local radio station for advertising to appear innediately. A kayaking clinic witl juty 30 be hetd on August 10 , and attendees can pay $110 in advance or $160 on the day of the clinic. The following transectices The fottowing transactions occur over the remainder of 2024, toan for the conpany from the city councit, Great Adventures obtains a $47,600 tow-interest toan roe the tompany iros the city council, activities. The loan is due in three years, and 6t annual interest is due each year on july 31. August 4 The conpany purchases 14 kayaks, paying 516,800 cash. August 10 Tony and Suzie conduct the first kayak clinic. In addition to the 54,400 that was received in advance fron kavakers on Jutv 30 . the conoany receives additional cash of $3.290 fron twenty ned Ine toklowing transactions occur over the renainder of 04. August 1 Great Adventures obtains a $47,000 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 68 annual interest is due each year on July 31. August 4 The company purchases 14 kayaks, paying $16,800cash. August 10 Tony and Suzie conduct the first kayak clinic. In addition to the $4,400 that was received in advance from kayakers on July 30 , the company receives additional cash of $3,200 from twenty ned kayakers on the day of the clinic. August 17 Tony and Suzie conducts a second kayak clinic, and the company receives $11,700 cash. August 24 office supplies of $1,700 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 September 21. Storage shed for one year, paying $4,560 (\$380 per month) in advance. September 21 Tony and Suzie conduct a rock-climbing clinic. The company receives $14,600 cash. Tony and Suzie conduct an orienteering clinic. Participants practice how to understand a topographical aap, read an altimeter, use a conpass, and orient through heavily wooded areas. December 1 The conpany receives $18,200 cash. Tony and Suzie decide to hold the company's first adventure race on December 15 . Four-person teans will race from checkpoint to checkpoint using a combination of rountain biking, kayaking, orienteering, tratl running, and rock-climbing 5kills. The first tean in each category to complete ali checkpoints in order wins. The entry fee for each tean is $560. December 5 To help organize and pronote the race, Tony hires his college roomate, Victor. Victor will be paid 560 in salary for each team that competes in the race. His salary witl be paid after the December B. The company pays $1,500 to purchase a permit fron a state park where the race witl be held. The amount is recorded as a miscellaneous expense. Decesber 12 The company purchases racing supplies for $2,400 on account due in 30 days. Supplies inctude trophies for the top-finishing teams in each category, promotional shirts, snack foods and drinks for participants, and fleld markers to pjepare the racecourse. Decenber 15 The company receives $22,400 cash from a total of forty teans, and the race is held. December 16 The company pays Victor's 5a lary of $2,400. December 31 The company pays a dividend of $4,400($2,200 to Tony and $2,200 to Suzie). Decenber 31 using his personal money, Tony purchases a dianond ring for $5,400. 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 $9,000. 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 $1,700 of office supplies purchased on July 4,$380 remains. e. Interest expense on the $47,000 loan obtained from the city council on August 1 should be recorded. f. Of the $2,400 of racing supplies purchased on December 12,$170 remains. g. Suzie calculates that the company owes $14,200 in income taxes. 5. For the period July 1 to December 31, 2024, prepare an income statement, statement of stockholders' equity and classified baland sheet. Complete this question by entering your answers in the tabs below. For the period July 1 to December 31,2024 , prepare an income statement. \begin{tabular}{|l|l|} \hline & \end{tabular} For the period July 1 to December 31,2024 , prepare a statement of stockholders' equity. All account balances on July 1 were zero. Complete this question by entering your answers in the tabs below. Prepare a classified balance sheet as of December 31, 2024. (Amounts to be deducted should be indicated by a minus sign.)