ster Project 7 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 bicing or kayaking. Upon developing a customer base, they'll hoid 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 Surle organize their new company as a corporation, Great Adventures Inc. The articles of Incorporation state that the corporation will sell 20,000 shares of common stock for St 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 through December 31 1 Sell 515,000 or con stock tosunie. 1 Sell $15.000 of stock to Tony. 1 Purchase one-year nurance policy for $3,600 5300 per month) to cover interier to participants during outdoor clinics. 2 May Legal fees of $1,100 associated with incorporation Jul. Purchase office supplies of $1,000 on account al. 7 pay for advertising of $200 to a local newspaper for an upcoming montes biking clinic to be held on July 15. Attendees will be charged seo on the day of the elinie Purchase 10 mountain bikes, paying $16,700 CAnh. Jel 15 on the day of the clinic, Great Adventures receives cash of $3,600 from 60 bikers. Tony conducts the mountain biking alinle. Jul. 22 Because of these of the first mountain bikieline, Tony holds another mountain biking elinie and the company receives $4,100. Jul. 26 Yay $780 to local radio station for advertising to appear imediately. A kayaking clinic wil be held on August 10, and attendees can pay $130 in advance or $180 on the day of the elinie. Jal. 36 Great Adventures receives cash of $7,000 in advance from 66 kayakere for the upcoming Layak elinte. Ang. I Great Adventures obtain a 140,000 low-interest toan 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 esch year on July 31. Aug Ag! 10 Tennyssitional kayakers pays), 600 (0100 cach), in addition to the $7,000 that was paid in advance on the day of the clinic. Tony conducts the first layak linic. Aug. 17 Tony codeets Aug 24 office supplier of $1,000 purchased on Sely are paid in full. Second kayak elint and the company receive 513,200 cash sep. i to provide better storage ot mountain bikes and kayaks when not in use, the company rents storage Sep. 21 Tony conducta rock climbing ellne. The company receives $13,300 cash oct. 17 Tony conducte an orienteering inte. Participants practice how to understand topographical map. read an altimeter. We a compens, and orient through heavily wooded areas. The company receives Dec. 1 Tony decides to hold the company's first adventure race on December 15. Your person to will race from checkpoint to checkpoint using combination of mountain biking, kayaking, orientering, trail ring, and rock-climbing skills. The first team in each category to complete all checkpointa in order wins. The entry fee for each team is $600. Dec. 5 To help organize and promote the race. Tony hire his college roommate. Vietor. Vietor will be paid # The company pay $1.700 to purchase a pornit from state park where the race will be held. The Dec. 12 The company purchases racing applies for $2.00 onsccount doe in 3 daye sopplies include trophies for the top-finishing teams in cach category, promotional shieta, snack food and drinks for Dec. 15 The company receives $24,000 cash from a total of forty teame, and the race is held. Dec.31 The company paye dividend of 14.700 (52,350 to Tony and $2.350 to Sunse). Dec. 31 sing his personal money, Tony purchases a diamond ring for $4,000. Tony surprises Susie by proposing that they get married. urte 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 $8.900 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 has expired. d. Of the $1.000 of office supplies purchased on July 4, 5200 remains e Interest expense on the $48,000 loan obtained from the city council on August 1 should be recorded. t of the $2.800 of racing supplies purchased on December 12. $210 remains. g. Suzie calculates that the company owes $13,800 in income taxes 8. Prepare a post-closing trial balance as of December 31, 2021. Credit GREAT ADVENTURES, Inc. Post.closing Trial Balance December 31, 2021 Accounts 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 Dividende Service Revenue (C) Service Revenue (Racing) Advertising Expense Depreciation Experise Income Tax Expert Insurance Expense Interest Expense Legal Fous Expense Mocolaneous Expense Rent Expense Sales Expense Supplies Expense (O) Supplies Expense Racing) Total $