The following information applies 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 December 31. Also, the balances are provided for the month ended July 31. The articles of incorporation state that the corporation will sell 32,000 shares of common stock for $1 each. Each share of stock represents a unit of ownership. Tony and Suzie will act as co-presidents of the company. The following business activities occur during July for Great Adventures. Jul. 1Sell $16,000 of common stock to Suzie. Jul. 1 Sell $16,000 of common stock to Tony. Jul. 1 Purchase a one-year insurance policy for $5,400 ($450 per month) to cover injuries to participants during outdoor clinics. Jul. 2 Pay legal fees of $2,000 associated with incorporation. Jul. 4 Purchase office supplies of $1,900 on account. Jul. 7 Pay for advertising of $390 to a local newspaper for an upcoming mountain biking clinic to be held on July 15. Attendees will be charged $70 the day of the clinic. Jul. 8 Purchase 10 mountain bikes, paying $14,200 cash. Jul. 15 On the day of the clinic, Great Adventures receives cash of $3,500 from 50 bikers. Tony conducts the mountain biking clinic. Jul. 22 Because of the success of the first mountain biking clinic, Tony holds another mountain biking clinic and the company receives $4,100. Jul. 24 Pay for advertising of $890 to a local radio station for a kayaking clinic to be held on August 10. Attendees can pay $120 in advance or $170 on the day of the clinic. Jul. 30 Great Adventures receives cash of $8,400 in advance from 70 kayakers for the upcoming kayak clinic. 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 $16,800 cash. Aug. 10 Twenty additional kayakers pay $3,400 ($170 each), in addition to the $8,400 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 $10,900 cash. Aug. 24 Office supplies of $1,900 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 $4,800 ($400 per month). Sep. 21 Tony conducts a rock-climbing clinic. The company receives $14,300 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 $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 rock-climbing skills. The first team in each category to complete all checkpoints in order wins. The entry fee for each team is $520.Dec. 5 To help organize and promote the race, Tony hires his college roommate, Victor. Victor will be paid $30 in salary for each team that competes in the race. His salary will be paid after the race Dec. 8 The company pays $1,900 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 $2,500 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 $20,800 cash from a total of forty teams, and the race is held.Dec. 16 The company pays Victor's salary of $1,200. 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 $4,100. 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 $8,300. b. Six months' worth of insurance has expired. c. Four months' worth of rent has expired. d. Of the $1,900 of office supplies purchased on July 4, $270 remains. e. Interest expense on the $30,000 loan obtained from the city council on August 1 should be recorded. f. Of the $2,500 of racing supplies purchased on December 12, $200 remains. g. Suzie calculates that the company owes $14,300 in income taxes. Assume the following ending balances for the month of July Cash Prepaid insurance Supplies (Office) Equipment (Bikes) Accounts payable Deferred revenue Common stock Service revenue (Clinic) Advertising expense Legal fees expense Balance $ 25,120 5,400 1,900 14,200 1,900 8,400 32,000 7,600 1,280 2,000 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.) View transaction list Journal entry worksheet 4 Depreciation of the mountain bikes purchased on July 8 and kayaks purchased on August 4 totals $8,300 Notc: Enter debits before credits. Date neral Journal Debit Credit Dec 31, 2018 n expense 8,300 Service revenue (Clinic) 8,300 Record entry Clear entry View general journal Answer is not complete GREAT ADVENTURES, Inc. Adjusted Trial Balance December 31, 2018 Accounts Debit Credit $93,220 2,700 3,200 Cash Prepaid insurance Prepaid rent Supplies (Office) Equipment (Bikes) Accounts payable Common stock Service revenue (Clinic) Advertising expense Legal fees expense Miscellaneous expense Supplies (Racing) Supplies expense (Racing) Salaries expense Dividends Depreciation expense Insurance expense Rent expense Supplies expense (Office) Interest expense Notes payable Income tax expense Income tax payable 270 22,700 2,500 32,000 84,700 1,280 2,000 1,900 200 2,300 1,200 4,000 8,300 2,700 1,600 1,630 1,800 31,800 14,300 14,300 Sa. For the period July 1 to December 31,2018, prepare an income statement GREAT ADVENTURES, Inc Income Statement December 31, 2018 Revenues: Total revenues 0 Expenses Total expense 0 0 GREAT ADVENTURES, Inc. Statement of Stockholders' Equity For the period ended December 31, 2018 Total Stockholders' Equity Common Stock Earnings 5-c. Prepare a classified balance sheet as of December 31, 2018. (Amounts to be deducted should be indicated with minus sign.) GREAT ADVENTURES, Inc Balance Sheet December 31, 2018 Assets Liabilities Total current liabilities 0 Total current assets Stockholders' Equity Total stockholders' equity 0 Total assets 0 Total liabilities and stockholders' equity$ 0 View transaction list Journal entry worksheet Record the closing of revenue accounts. Note: Enter debits before credits. Date General Journal DebitCredit Dec 31, 2018 Record entry Clear entry View general journal The following information applies 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 December 31. Also, the balances are provided for the month ended July 31. The articles of incorporation state that the corporation will sell 32,000 shares of common stock for $1 each. Each share of stock represents a unit of ownership. Tony and Suzie will act as co-presidents of the company. The following business activities occur during July for Great Adventures. Jul. 1Sell $16,000 of common stock to Suzie. Jul. 1 Sell $16,000 of common stock to Tony. Jul. 1 Purchase a one-year insurance policy for $5,400 ($450 per month) to cover injuries to participants during outdoor clinics. Jul. 2 Pay legal fees of $2,000 associated with incorporation. Jul. 4 Purchase office supplies of $1,900 on account. Jul. 7 Pay for advertising of $390 to a local newspaper for an upcoming mountain biking clinic to be held on July 15. Attendees will be charged $70 the day of the clinic. Jul. 8 Purchase 10 mountain bikes, paying $14,200 cash. Jul. 15 On the day of the clinic, Great Adventures receives cash of $3,500 from 50 bikers. Tony conducts the mountain biking clinic. Jul. 22 Because of the success of the first mountain biking clinic, Tony holds another mountain biking clinic and the company receives $4,100. Jul. 24 Pay for advertising of $890 to a local radio station for a kayaking clinic to be held on August 10. Attendees can pay $120 in advance or $170 on the day of the clinic. Jul. 30 Great Adventures receives cash of $8,400 in advance from 70 kayakers for the upcoming kayak clinic. 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 $16,800 cash. Aug. 10 Twenty additional kayakers pay $3,400 ($170 each), in addition to the $8,400 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 $10,900 cash. Aug. 24 Office supplies of $1,900 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 $4,800 ($400 per month). Sep. 21 Tony conducts a rock-climbing clinic. The company receives $14,300 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 $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 rock-climbing skills. The first team in each category to complete all checkpoints in order wins. The entry fee for each team is $520.Dec. 5 To help organize and promote the race, Tony hires his college roommate, Victor. Victor will be paid $30 in salary for each team that competes in the race. His salary will be paid after the race Dec. 8 The company pays $1,900 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 $2,500 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 $20,800 cash from a total of forty teams, and the race is held.Dec. 16 The company pays Victor's salary of $1,200. 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 $4,100. 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 $8,300. b. Six months' worth of insurance has expired. c. Four months' worth of rent has expired. d. Of the $1,900 of office supplies purchased on July 4, $270 remains. e. Interest expense on the $30,000 loan obtained from the city council on August 1 should be recorded. f. Of the $2,500 of racing supplies purchased on December 12, $200 remains. g. Suzie calculates that the company owes $14,300 in income taxes. Assume the following ending balances for the month of July Cash Prepaid insurance Supplies (Office) Equipment (Bikes) Accounts payable Deferred revenue Common stock Service revenue (Clinic) Advertising expense Legal fees expense Balance $ 25,120 5,400 1,900 14,200 1,900 8,400 32,000 7,600 1,280 2,000 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.) View transaction list Journal entry worksheet 4 Depreciation of the mountain bikes purchased on July 8 and kayaks purchased on August 4 totals $8,300 Notc: Enter debits before credits. Date neral Journal Debit Credit Dec 31, 2018 n expense 8,300 Service revenue (Clinic) 8,300 Record entry Clear entry View general journal Answer is not complete GREAT ADVENTURES, Inc. Adjusted Trial Balance December 31, 2018 Accounts Debit Credit $93,220 2,700 3,200 Cash Prepaid insurance Prepaid rent Supplies (Office) Equipment (Bikes) Accounts payable Common stock Service revenue (Clinic) Advertising expense Legal fees expense Miscellaneous expense Supplies (Racing) Supplies expense (Racing) Salaries expense Dividends Depreciation expense Insurance expense Rent expense Supplies expense (Office) Interest expense Notes payable Income tax expense Income tax payable 270 22,700 2,500 32,000 84,700 1,280 2,000 1,900 200 2,300 1,200 4,000 8,300 2,700 1,600 1,630 1,800 31,800 14,300 14,300 Sa. For the period July 1 to December 31,2018, prepare an income statement GREAT ADVENTURES, Inc Income Statement December 31, 2018 Revenues: Total revenues 0 Expenses Total expense 0 0 GREAT ADVENTURES, Inc. Statement of Stockholders' Equity For the period ended December 31, 2018 Total Stockholders' Equity Common Stock Earnings 5-c. Prepare a classified balance sheet as of December 31, 2018. (Amounts to be deducted should be indicated with minus sign.) GREAT ADVENTURES, Inc Balance Sheet December 31, 2018 Assets Liabilities Total current liabilities 0 Total current assets Stockholders' Equity Total stockholders' equity 0 Total assets 0 Total liabilities and stockholders' equity$ 0 View transaction list Journal entry worksheet Record the closing of revenue accounts. Note: Enter debits before credits. Date General Journal DebitCredit Dec 31, 2018 Record entry Clear entry View general journal