Required information (The following information applies to the questions displayed below, of 6 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 28,000 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 transactions occur from July 1 through December 31 Jul. 1 Sell $14,000 of eonmon stock to Suaie. Jul. 1 Bel1 $14,000 of conmon atoek to Tony. Jul. 1 Purehase a one-year insurance poliey for $5,760 (480 per nonth) to cover injuries to participants during outdoor elinics. 2 Pay legal tees of $2,000 assoeiated with ineorporation. 4 Purehase oftice supplies of $1,200 on account 7 Pay for advertising of $260 to a local nevepaper for an upeoming mountain biking elinie to be held on July 15. Attendees wil1 be charged $30 on the day of the elinie. Jul. Jul. Jul. Jul. Purehase 10 mountain bikes, paying $10,100 cash Jul. 15 On the day of the elinie, Great Adventures receives eash of 1,800 Erom 60 bikers. Tony conducta the mountain biking elinie. Jul. 22 Because of the suecess of the first mountain biking elinie, Tony holds another nountain biking elinic and the eompany receives $2,100 Jul. 24 Pay 760 to a local radie station for advertising to appear iediately. A kayaking elinie will be held on August 10, and attendees can pay $140 in advance or $190 on the day of the clinic. 21. 30 Geat Adventures receives cash of s8,400 in advance trom 60 kayakers for the upconing kayak elinic. 1 Great Adventures obtains a $36,000 low-interest loan for the company fron the eity couneil, which has recent ly passed an initiative encouraging business development related to outdoor activities. The Aug. loan is due in three years, and 6 annual interest is due each year on July 31. Aug- 4The company parchases 14 kayaka, paying $16,000 eaah 10an 1s aue in taree years, ana os annuai interest is aue eacn year on JULy 31. Aug. Aug. 10 Tventy additional kayakers pay $3,800 ($190 each), in addition to the $8,400 that was paid in advance 4 The company purchases 14 kayaks, paying $16,000 cash. on July 30, on the day of the clinic. Tony conducts the first kayak clinic. Aug. 17 Tony conducts a second kayak clinic, and the company receives $11,500 cash. 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 $3,480 ($290 per month) in advance. Sep. 21 Tony conducts a rock-climbing clinic. The company receives $13,700 cash. Oct. 17 Tony conducts 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 $18,300 cash. 1 Tony decides to hold the company's first adventure race on December 15. Four-person teans 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 vins. The entry fee for each team is $600. 5 To help organize and promote the race, Tony hires his college roommate, Victor. Victor will be paid $40 in salary for each team that competes in the race. His salary will be paid after the race. 8 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. Dec. Dec. pec. Dec. 12 The company purchases racing supplies for $2,400 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 t0 prepare the racecourse Dec. 15 The company receives $24,000 cash from a total of forty teams, and the race is held. Dec. 16 The company pays Victor's salary of $1,600. Dec. 31 The company pays a dividend of $4,100 ($2,050 to Tony and $2,050 to Suzie) Dec. 31 Using his personal money, Tony purchases a diamond ring for $4,600. 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, 2021 a. Depreciation of the mountain bikes purchased on July 8 and kayaks purchased on August 4 totals $8,600. 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, $350 remains e. Interest expense on the $36,000 loan obtained from the city council on August 1 should be recorded. f Of the $2,400 of racing supplies purchased on December 12, $100 remains g. Suzie calculates that the company owes $13,500 in income taxes 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 $8,600 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, $350 remains. e. Interest expense on the $36,000 loan obtained from the city council on August 1 should be recorded. fOf the $2,400 of racing supplies purchased on December 12, $100 remains. g. Suzie calculates that the company owes $13,500 in income taxes. 7. Post the closing entries of retained earnings to the T-account. Answer is not complete. Retained Earnings Beg. Bal. Dec. 31 4,100 Dec. 31 End. Bal, 4,100