The following business activities occur during December:

Dec 3 The company pays $850 to purchase a permit from a state park where the race will be held. The amount is recorded as a miscellaneous expense.

Dec 11 The company purchases racing supplies for $4,300 on account, due in 30 days.

Dec 18 Great Adventures receives $20,000 cash from customers for a clinic that will be held in January of 2017.

Dec 25 The company pays an employees salary of $3,000.

Dec 30 The company pays dividends of $2,000.

Adjusting Journal Entries

The following information relates to year-end adjusting entries as of December 31, 2016:

a. Depreciation of the mountain bikes and kayaks totals $14,000.

b. Seven months worth of insurance has expired.

c. Six months worth of rent has expired.

d. Of the $1,800 of office supplies purchased on June 7th, $300 remains.

e. Interest expense on the $50,000 loan obtained on August 1 should be recorded. (It is not paid, just recorded).

f. Of the $4,300 of racing supplies purchased on December 11, $400 remains.

g. The company estimates that it will owe $12,000 in income taxes for the year 2016. (It is not paid, just recorded).