[The following information applies to the questions displayed below.] Tony and Suzie graduate from college in May 2024 and begin developing their new business. They begin by offering clinics for basic outdoor activities such as mountain biking or kayaking. Upon developing a customer base, they'll hold 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, 2024. Tony and Suzle organize their new company as a corporation, Great Adventures Incorporated The articles of incorporation state that the corporation will sell 27,000 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. July1July1July1July2July4July7Sell$13,500ofcommonstocktoSuzie.Sely$13,500ofcommonstocktoTony.Purehaseaone-yearinsurancepolicyfor$4,560($380permonth)tocoverinjurieatoparticipantsduringoutdoorelinics.Purchaseofficesuppliesof$1,100onaccount.Pay$400toalocalnewspaperforadvertisingtoappearimmediatelyforanupconingmountain July B- biking elinie to be held on July 15. Attendees will be charged $60 the day of the olinic. July 15 Purchase 10 mountain bikes, paying $16,200 eash. On the day of the elinic, Great Mdventures receives cash of $4,200 in total from 70 bikers. Tony July 22 and Suzie conducts the mountain biking olinic. Because of the suecess of the firut mountain biking olinic, Tony and suzie holds another July 24- mountain biking elinic and the company receiven $4,500. July 24 Pay $970 to a loeal radio llation for advertining to appear imediately. A kayaking olinie will July 30 be held on August 10, and attendees can pay $110 in advance or $160 on the day of the elinie. Great Adventures receives total cash of $6,600 in advance from 60 kayakers for the upeoning The following transaetions oeeur oyer the remainder of 2024 . August 1 Great Adventures obtainn a 334,000 low-interest loan for the company from the oity couneil, which has recently passed an initiative encouraging business developent related to outdoor activities. The loan is due in three years, and 6t annual interent in due each year on july 31 . August 4 The company purchases 14 kayaks, paying $22,800cash. August 10 Tony and suzie conduet the first kayak elinic. In addition to the $6,600 that was received in advance from kayakern on July 30 , the company receives additional cash of $3,200 from twenty nov August kayakers on the day of the clinic. August 17 Tony and suzie conduets a second kayak olinic, and the company receives $11,500 cash. August 24 Office supplios of $1,100 purchased on July 4 are paid in full. September 1 To provide better storage of mountain bikes and kayaks when not in use, the conpany rents a storage shed for one year, paying $3,720 (\$310 per month) in advance. September 21 Tony and Suzie conduct a rock-climbing clinic. The company recoives $13,300 cash. October 17 Tony and Suzie conduct an orienteering elinic. Participants practice how to underatand a topographical map, read an altimeter, use a compass, and orient through heavily wooded areas. December 1 Tony and Suzie decide to hold the company's first adventure race on December 15 . Four-person teams wil1 race from eheckpoint to checkpoint using a combination of mountain biking, kayaking, orienteering, trail running, and rook-climbing skilla. The firgt team in each category to complete al1 checkpoints in order wins. The entry fee for each team is $670. December 5 To help organize and promote the race, Tony hires his college roommate, Victor. victor will be paid $60 in salary for each tean that conpetes in the race. His salary will be paid after the December 8 The company pays $1,100 to purchase a permit from a gtate park where the race will be held. The December 12 amount is recorded as a miscellaneous expense. December 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 partieipants, and field markers to prepare the racecourse. December 15 The company receives $26,800 cash from a total of forty teams, and the race is held. December 16 The company pays Victor's salary of $2,400. December 31 The company pays a dividend of $3,400($1,700 to Tony and $1,700 to $ tozie ). December 31 Using his personal toney, Tony purchases a dianond ring for $3,800, Tony surprises suzie by proposing that they get married. Suzie accepts and they get marriedt The following information relates to year-end adjusting entries as of December 31,2024. a. Depreciation of the mountain bikes purchased on July 8 and kayaks purchased on August 4 totals $8,000. 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 1 has expired. d. Of the $1,100 of office supplies purchased on July 4,$270 remains. e. Interest expense on the $34,000 loan obtained from the city councll on August 1 should be recorded. f. Of the $2,800 of racing supplies purchased on December 12,$150 remains. 9. Suzie calculates that the company owes $14,400 in income taxes. 3. Post transactions from July 1 through December 31 and adjusting and closing entries on December 31 to T-accounts. 7. Post the closing entries of retained earnings to the T-account