[The following information applies to the questions displayed below.] Tony and Suzle 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'il 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 Sel1 $13,500 of comnon atoek to suzie. July 1 Sell $13,500 of common atoek to Tony. July i Purchase 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 lipplies of $1,100 on account. July 7 Pay $400 to a local newapaper for advertiaing to appear immediately for an upeoming mountain blking elinie to be held on July 15. Attendees wili be charged $60 the day of the elinic. 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 ruty 22 and Buzie conduets the mountain biking elinic. July 22 Because of the nuecess of the first mountain biking qiinie, Tony and suzie holde another mountain biking elinic and the company receiven $4,500. July 24 Pay $970 to a loeal radio ntation for advertining to appear immediately, A kayaking elinie will Ju2y30GreatAdventuresrecelvestotaleashof96,600inadvancefrom60kayakerefortheupeoning The following transaotion oecur over the renainder of 2024 . Adgant i Great Adventurea obtains a $34,000 low-intereat loan for the conpany fron the eity couneil. which han recently passed an initiative encouraging bunines development related to outdoor activities. The loan is due in three yeark, and 61 annial interest in due each year on July 31. Augunt 4. The conpany purchasen 14 kayaks, paying $22,300 cash. August 10 Tony and suzie conduet the first kayak elinic, in addition to the 36,600 that vas received in advance from kayakers on July 30, the conpany receives additional eash of $3,200 from twenty new kayakers on the day of the olinie. 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 kayaks when not in use, the company rents a storage shed for one year, paying $3,720 ( $310 per month) in advance. September 21 Tony and suzie conduet a rock-elimbing clinic. The conpany receives $13,300 cash. 0etober 17 Tony and Suzie conduct an orienteering olinic. Participanta practice how to understand a topographical map, read an altimetor, use a compans, and orlent 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 checkpoint to checkpoint using a combination of mountain biking. kayaking, orienteoring, trail running, and rock-climbing skills. The first tean in each category to complete all checkpoints in order wing. The entry fee for each team in $670. December 5 To help organize and promote the race, Tony hires his college roomate, Vietor. victor will be paid $60 in salary for each team that competes in the race. His salary will be paid after the Decemberis race. December 8 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 mincollaneous expense. December 12 The company purchases raeing supplies for 52,800 on account due in 30 days. Supplies include trophies for the top-finishing teans in each category, promotional shirts, snack foodn and drinks for partiefpanta, and field markers to propare the racecourge. December 15 The company receives $26,800 cash from a total of forty teang, and che race is 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 $12, Te ). December 31 Using his personal money, Tony purchases a diamond ring for $3,800. Tony ourprises suzie by proposing that they get married. Suzie aceepts 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 pijrchased on August 4 totals $8,000. b. Six months' of the one-year insurance pollcy purchased on July 1 has expired. c. Four months of the one-year rental agreement purchased on September 1 has oxpired. d. Of the $1,100 of office supplies purchased on July 4,$270 remains. Q. Interest expense on the $34,000 loan obtained from the city council on August 1 should be recorded. f. Of the $2,800 of racing supplies purchased on December 12,$150 remains. 9. Suzie calculates that the company owes $14,400 in income taxes. 8. Prepare a post-closing trial balance as of December 31,2024