Sora GL2-16 Complete the full accounting cycle cos On July 1, 2018, Tony and Suzle organize their new company as a corporation, Great Adventures Inc. The following transactions occur from August 1 through December 31. Also, the balances are provided for the month ended July 31. Aug. 1 Great Adventures obtains a $30,000 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 Aug. 4 The company purchases 14 kayaks, paying $28,000 cash Aug. 10 Twenty additional kayakers pay $3,000 ($150 each), in addition to the $4,000 that was paid in advance on July 30, on the day of the clinic. Tony conducts the first kayak clinic. Aug. 27 Tony conducts a second kayak clinic, and the company receives $10,500 cash Aug, 24 Office supplies of $1,800 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, purchasing a one-year rental policy for $2,400 ($200 per month). Sep 21 Tony conducts a rock-climbing clinic. The company receives $13,200 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 $17,900 cash, Dec. 1 Tony decides 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 $500. Dec. 5 To help organize and promote the race, Tony hires his college roommote, Victor Victor will be paid $50 in salary for each team that competes in the race. His salary will be paid after the race. Dec. 8 The company pays $1,200 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 $2,800 on account due in 30 dry 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 $20,000 cash from a total of forty teams, and the race is held Dec 16 The company Days Victor's salary of $2.000 Dec. 31 The company pays a dividend of $4,000 (52,000 to Tony and $2,000 to Surie) Dec. 31 Using his personal money, Tony purchases a diamond ring for $4.500. Tony surprises Suze by proposing that they get married. Sure accepts and they get married The following information relates to year-end adjusting entries as of December 31, 2018 1. Depreciation of the mountain bikes purchased on July and kayaks purchased on August 4 total $8.000 b. Six months worth of insurance has expired c. Four months worth of rent has expired d. Of the $1,800 of office supplies purchased on July 4, 5300 remains the end Pro Next 2. Interest expense on the $30,000 loan obtained from the city council on August 1 should be recorded. Of the $2,800 of racing supplies purchased on December 12, $200 remains. 9. Suzie calculates that the company owes $14,000 in income taxes. Cash Assume the following ending balances for the month of July. Balance $ 9,000 Prepaid insurance 4,800 Supplies (Office) 1.800 Equipment (Bikes) 12,000 Accounts payable 1800 Deferred revenue 4,000 Common stock 20,000 Service revenue (Clinic) 4,300 Advertising expense 1,000 Legal fees expense 1,500 'Annual premium paid July 1 Requirement General Journal General Ledger Trial Balance Income Statement Changes in SE Balance Sheet Prepare the journal entries for transactions. 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 No General Journal Credit Date Aug 01, 2018 Cash Notes payabile Debit 30,000 1 30,000 2 Aug 04, 2018 20,000 Equipment (Kayaks) Cash 28.000 IN 3 Aug 10, 2018 4,000 Deferred revenue Cash Service revenue (Clinic) 3,000 7.000 IN Aug 17, 2018 10.500 Cash Service revenue (Clinic) 10,500 Aug 24, 2018 1.800 Accounts payable Cash T.HOO 12 Dec 15, 2018 Cash Service revenue (Racing) 17,900 | 1 17.900 13 Dec 16, 2018 Miscellaneous expense 1,200 Cash 100 points 1,200 14 Dec 31, 2018 Supplies (Racing) Accounts payable 2,800 2,800 eBook IN 15 Dec 31, 2018 Cash 20,000 Service revenue (Racing) 20,000 Print 16 Dec 31, 2018 Salaries expense Cash 2,000 References 2,000 17 Dec 31, 2018 Dividends Cash 4,000 4,000 18 Dec 31, 2018 Depreciation expense Accumulated depreciation 8.000 8,000 19 Dec 31, 2018 2.400 Insurance expense Prepaid Insurance 2.400 IN 20 Dec 31, 2018 800 Rent expense Prepaid rent 800 221 Dec 31, 2018 Supplies expenso (Office) Supplies (Office) 1,500 1,500 22 Dec 31, 2018 Interest expense Interest payable 750 750 IN 23 Dec 31, 2018 Supplies expense (Racing) Supplies (Racing) 2.600 2.600 24 Dec 31, 2018 Income tax expense Income taxes payable 14,000 14 000 No Date General Journal Debit - Credit Aug 01, 2018 Cash Notes payable 30,000 30,000 IN N 2 Aug 04, 2018 Equipment (Kayaks) Cash 28,000 28,000 3 Aug 10, 2018 Deferred revenue Cash Service revenue (Clinic) 4,000 3,000 Book 7,000 4 Print Aug 17, 2018 Cash Service revenue (Clinic) 10,500 10,500 Herences 5 Aug 24, 2018 Accounts payable 1,800 Cash 1.800 IN Sep 01, 2018 Prepaid rent Cash 2,400 2,400 7 Sep 21, 2018 Cash 13,200 Service revenue (Clinic) 13,200 Oct 17, 2018 Cash Service revenue (Clinic) 17,900 17.000 0 Dec 05, 2018 Supplies (Racing) Accounts payable 2.100 2,800 10 Dec 08, 2010 Cash Service revenue (Racing) 20,000 20.000 11 Dec 12, 2018 Salaries expense Cash 2,000 2,000 12 Dec 15, 2018 Cash Service revenue (Racing) 17.000 17.500