[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 Suzie 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. July 1 Sell $13,500 of comnon ntoek to Suzie. July 1 Sell $13,500 of eomon atoek to Tony. July 1 Purchane a one-year insurance policy for $4,560 (\$380 per month) to cover injurien to July 2 pay legal fees of $1,700 assoeiated with incorporation. July 4 Purchase offiee nupplies of $1,100 on account. July 7 Pay $400 to a local newnpaper for advertiaing to appear imadiately for an upeoming mountain biking elinie to be held on July 15. Attendeen will be charged $60 the day of the elinie. July \& Purchase 10 mountain bikes, paying $16,200 eash. July 15 On the day of the elinie, Great Adventurea receiven eash of $4,200 in total from 70 bikera. Tony July and Buzie conduet the mountain biking elinie. July 22 Because of the euecess of the first mountain biking qiinie, Tony and suzle holdn another 3 mountain biking elinie and the conpany receiven $4,500. July 24 Pay $970 to a loeal radio ntation for advertining to appear immediately, A kayaking olinie will July 30 Great Adventures receives total eash of $6,600 in advance from 60 kayakers for the upeoning The following transaotions oecur over the renainder of 2024 , Aaguat i Great Adventures obtains a $34,000 low-interent loan for the conpany from the elty couneil, which han recently passed an initiative encouraging buniness development related to outdoor activities. The loon is due in three yeare, and 6 t annial interest is due each year on july 31. Augunt 4. The conpany purchasen 14 kayaks, paylng 322,000 eanh. August 10 Tony and Suzie conduct the first kayak clinic. In addition to the 56,600 that was received in advance from kayakers on July 30, the conpany receives additional cash of $3,200 tron twenty new kayakers on the day of the elinie. August 17 Tony and Suzie conducts a second kayak clinic, and the company receives \$11, 500 cash. August 24 Office supplies of $1,100 purchased on July 4 are paid in full. September 1 To provide better storage of mountain bikes and kayake when not in use, the company renta a storage shed for one year, paying $3,720 ( $310 per month) in advance. September 21 Tony and suzie conduet a rock-elimbing clinie. The conpany recelves $13,300 cash. 0etober 17 Tony and Suzie conduct an orienteering olinic. Partieipanta practice how to understand a topographical map, read an altimeter, use a compans, and orient through heavily wooded areas. The company receives $19,800 cash. December 1 Tony and Suzie decide to hold the company's first adventure race on December 15 . Four-person teams will race from eheckpoint to checkpoint using a combination of mountain biking, kayaking, orienteering, trail running, and rock-climbing skills. The first tean in each category to complete all checkpoints in order wing. The entry fee for each tear in $670. December 5 To help organize and promote the race, Tony hires his college roommate, vietor. Victor will be paid $60 in salary for each team that competes in the race. His salary will be paid after the December B The company pays $1,100 to purchase a permit from a state park where the race will be held. The December 12 amount is recorded as a mi scellaneoun expense. December 12 The company purehases raeing supplien for 52,800 on account due in 30 days. Supplies inelude trophies for the top-finishing teams in each category, promotional shirts, snack foodn and drinks for partieipants, and field markers to propare the racecourse. December 15 The company receives $26,800 cash from a total of forty teann, and the race ia held. December 16 The company pays Vietor s salary of $2,400. December 31 The company pays a dividend of $3,400($1,700 to Tony and $1,700 to $tazie). December 31 Using his personal money, Tony purchases a dianond ring for $3, 800 . Tony vurpriees 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 31,2024. a. Depreciation of the mountain bikes purchased on July 8 and kayaks pirrchased 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 council on August 1 should be fecorded. 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. 4. Prenare an adiusted trial halance ac nf Doromher 21 n 20