tes On July 1, 2018. Tony and Suzie organize their new company as a corporation, Great Adventures Inc. The following transactions occu 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 roommate, 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 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 $20,000 cash from a total of forty teams, and the race is held Dec. 16 The company pays Victor's salary of $2,000. Dec. 31 The company pays a dividend of $4,000 ($2,000 to Tony and $2,000 to Suzie) Dec. 31 Using his personal money, Tony purchases a diamond ring for $4,500. 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, 2018 a. Depreciation of the mountain bikes purchased on July 8 and kayaks purchased on August 4 totals $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, $300 remains e 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 Suzie calculates that the company owes $14,000 in income taxes The following information relates to year-end adjusting entries as of December 31, 2018. a. Depreciation of the mountain bikes purchased on July 8 and kayaks purchased on August 4 totals $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, $300 remains. e Interest expense on the $30,000 loan obtained from the city council on August 1 should be recorded. f. Of the $2,800 of racing supplies purchased on December 12, $200 remains. g. Suzie calculates that the company owes $14,000 in income taxes. Assume the following ending balances for the month of July. Balance Cash $ 9,000 Prepaid insurance 4,800 Supplies (Office) 1,800 Equipment (Bikes) 12,000 Accounts payable 1,800 Deferred revenue 4,000 Common stock 20,000 Service revenue (Clinic) 4,300 Advertising expense 1,000 Legal fees expense 1,500 5 "Annual premium paid July 1 General General Income Requirement Journal Trial Balance Ledger Statement Changes in SE Balance Sheet General Journal tab - For each transaction, prepare the required journal entry on the General Journal tab. List debits before credits General Ledger tab - Each journal entry is posted automatically to the general ledger. Trial Balance tab - The ending balance values from the General Ledger tab flows through to the Trial Balance tab. Income Statement tab - Use the drop-down to select the accounts properly included on the income statement. Statement of Changes in Stockholders' Equity tab - Prepare the statement of changes in stockholders' equity for the year ended December 31, 2018. Balance Sheet tab - Prepare a classified Balance Sheet at December 31, 2018. Raquirement General Journal >