The following information appies to the questions displayed below. On July 1, 2018, Tony and Suzie organize their new company as a corporation, Great Adventures Inc. The following transactions occur from August 1 through Decomber 31 Also, the balances are provided for the month ended July 31. ug. 1 Great dventures obtains a 35,000 ow interest loan or 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 $13,200 cash. Aug. 10 Twenty additional kayakers pay $4,000 ($200 each), in addition to the $9,000 that was paid in advance 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 $12,400 cash. Aug. 24 Office supplies of $1,400 purchased on July 4 are pald 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 $3,120 ($260 per month). Sep. 21 Tony conducts a rock-climbing clinic. The company receives $14100 cash. Oct 17 Tony conducts an orienteering clinic. Participants practice how to understand a topographical map, read an altimeter, use a compass, and orlent through heavily wooded areas. The company recelves $19,300 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 r The first team in each category to complete all checkpoints in order wins. The entry fee for each team is $670. 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 $1100 to purchase a permit from a state park where the race will be held. The amount is recorded as a miscel laneous 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 $26,800 cash from a total of forty teams, and the race is held. Doc. 16 The company pays Victor's salary of $2,000. Dec. 31 The company pays a dividend of $4,300 ($2150 to Tony and $2.150 to Suzie). Dec. 31 Using his personal money, Tony purchases a diamond ring for $3,900. Tony surprises Suzie by proposing that they get married. Suzie accepts and they get married! skills. 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 $7,500 b. Six months worth of insurance has expired. c. Four months' worth of rent has expired. d. Of the $1,400 of office supplies purchased on July 4, $230 remains. e. Interest expense on the $35,000 loan obtained from the city council on August 1 should be recorded. f. Of the $2,800 of racing supplies purchased on December 12, $280 remains. g. Suzie calculates that the company owes $14,900 in income taxes. Assume the following ending balances for the month of July Cash Prepaid insurance Supplies (Office) Equipment (Bilces) Accounts payable Deferred revenue Common stock Service revenue (Clinic) Advertising expense Legal fees expense Balance $32,270 3720 1400 16,100 1400 9,000 39.000 6,500 1,100 28. 1.00 points Required 1. Record transactions from August 1 through December 31. (lf no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 29. 100 points 2. Record adjusting entries as of December 31, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 3. Post transactions from August 1 through December 31 and adjusting entries on December 31 to T-accounts. (Be sure to include beginning balances in the T-accounts.) Cash Prepaid Insurance Beg. Bal Beg. Bal End. Bal 0 End. Bal 0 Prepaid Rent Supplies (Office) Beg. Bal Beg. Bal End. Bal 0 End. Bal Supplies (Racing) Equipment (Bikes) Beg. Bal Beg. Bal End. Bal 0 End. Bal 0 Equipment (Kayaks) Accumulated Depreciation Beg. Bal Beg. Bal End. Bal End. Bal Accounts Payable Deferred Revenue Beg. Bal Beg. Bal End. Bal 0 End. Bal 0 Interest Payable Income Tax Payable Beg. Bal Beg. Bal End. Bal End. Bal Notes Payable Common Stock Beg. Bal Beg. Bal End. Bal End. Bal Dividends Service Revenue (Clinic) Beg. Bal Beg. Bal End. Bal End. Bal Service Revenue (Racing) Advertising Expense Beg. Bal Beg. Bal End. Bal End. Bal Legal Fees Expense Miscellaneous Expense Beg. Bal Beg. Bal End. Bal End. Bal Salaries Expense Depreciation Expense Beg. Bal Beg. Bal Insurance Expense Rent Expense Beg. Bal. Beg. Bal. End. Bal End. Bal. Supplies Expense (Office) Supplies Expense (Racing) Beg. Bal. Beg. Bal End. Bal 0 End. Bal. Interest Expense Income Tax Expense Beg. Bal. Beg. Bal. End. Bal. End. Bal. 4. Prepare an adjusted trial balance as of December 31, 2018. (The items in the Trial Balance should be grouped as follows: Assets, Contra-asset accounts, Liabilities, Equity, Dividends, Revenues, and Expenses.) GREAT ADVENTURES, Inc. Adjusted Trial Balance December 31, 2018 Accounts Debit Credit Totals 32. alue. 1.00 points 5-a. For the period July 1 to December 31, 2018, prepare an income statement. GREAT ADVENTURES, Inc Income Statement December 31, 2018 Revenues Total revenues Expenses Total expense 0 5-b. For the period July 1 to December 31, 2018, prepare a statement of stockholders' equity. All account balances on July 1 were zero. GREAT ADVENTURES, Inc. Statement of Stockholders' Equity For the period ended December 31, 2018 Total Common Stock RetainedStockholders Earnings Equity 5-c. Prepare a classified balance sheet as of December 31, 2018. (Amounts to be deducted should be indicated with minus sign.) GREAT ADVENTURES, Inc Balance Sheet December 31, 2018 Assets Liabilities Total current liabilities 0 Total current assets 0 Stockholders' Equity Total stockholders' equity Total assets 0 Total liabilities and stockholders' equity $ 1.00 points 6. Record closing entries as of December 31, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 34. 00 points value 7. Post the closing entries of retained earnings to the T-account. Retained Earnings Beg. Bal. End. Bal. 35. value: 1.00 points 8. Prepare a post-closing trial balance as of December 31, 2018. GREAT ADVENTURES, Inc Post-closing Trial Balance December 31, 2018 Accounts Debit Credit Totals 0 S