The following information applies to the questions displayed below) Tony and Suzie graduate from college in May 2021 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, theyll 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, 2021, Tony and Suzie organize their new company as a corporation, Great Adventures Inc. 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 transactions occur from July 1 through December 31 Jul. Jul. 1 Sell $13,500 of common stock to Sutie. Jul. 1 Sell $13.500 of common stock to Tony Jul. 1 Purchase a one-year insurance policy for $5,640 (1470 per month) to cover injuries to participants during outdoor clinics bul. 2 Pay legal fees of $1,200 associated with incorporation. Jul. 4 Purchase office supplies of $1.300 on account. ul! 7 Pay for advertising of $400 to local newspaper for an upcoming mountain biking in to be held on July 15 Attendees will be charged 50 on the day of the clinic 8Purchase Le mountain bikes, paying $16.500 cash Oul. 15 on the day of the clinic, Great Adventures receives cash of $3,000 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 $9,500 Jul. 24 Pay $930 to a local radio station for advertising to appear imediately. A kayaking clinic will be held on August 10, and attendees can pay 5138 in advance of $150 on the day of the clinic Jul. 30 Great Adventures receives cash of $7.800 in advance from Kayakers for the upcoming kayak olinis Aug. Great Adventures obtains a $35,000 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 Vears, and 6% annual interest is due each year on July 31. Aug 4 The company purchases 14 kayaks, paying $26,600 cash 10 Twenty additional kayakers pay $3,600 ($150 each), in addition to the $7,800 that was paid in advance only 30, on the day of the clinic. Tony conducts the first kayak clinic Aug. 17 Tory conducts second kayak clinic, and the company receives $11,000 cash. Aug. 24 Office supplies of $1,300 purchased on July 4 are paid in full. Sep To provide better storage of mountain bikes and kayaks when not in use, the company rents a storage shed for Aug. 26 UTT.Ce suppiles or purchased on July are pala in Tui. Sep. 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 (5310 per month) in advance. Sep. 21 Tony conducts a rock-climbing clinic. The company receives $13,900 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 $19,100 cash. Dec. 1 Tony decides to hold the company's first adventure pace 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 organire and promote the race, Tony hires his college roommate, Victor, Victor will be paid $40 in salary for each tean that competes in the race. His salary will be paid after the race. Dec. 8 The company pays $1,000 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 $2,800 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 $20.000 cash from a total of forty teams, and the race is held. Dec. 16 The company pays Victor's salary of $1,600. Dec. 31 The company pays a dividend of $4,100 ($2,50 to Tony and $2,050 to Suzie). Dec. 31 Using his personal money, Tony purchases a diamond ring for $4,500. Tony surprises Suze by proposing that they get married. Sutie accepts and they get married! The following information relates to year-end adjusting entries as of December 31, 2021 a. Depreciation of the mountain bikes purchased on July 8 and kayaks purchased on August 4 totals $8,600. 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 $1.300 of office supplies purchased on July 4, $380 remains e Interest expense on the $38.000 loan obtained from the city council on August 1 should be recorded. f. Of the $2.800 of racing supplies purchased on December 12. $270 remains Suzie calculates that the company owes $13,200 in income taxes. 4. Prepare an adjusted trial balance as of December 31, 2021 Answer is not complete. GREAT ADVENTURES, Inc. Adjusted Trial Balance December 31, 2021 Accounts Debit Credit Cash 84.11013 Prepaid Insurance 2.820 Prepaid Rent 2,840 Supplies (Office) 400 Supplies (Racing) 390 Equipment (Bikes) 16,500 Equipment (Kayaks) 26,600 Accumulated Depreciation 7.200 X Accounts Payable 2,800 Income Tax Payable 13 200 interest Payable Notes Payable 38.000 Common Stock 27 000 Dividends 4.100 Service Revenue (Clinic) 76,200 Service Revenue (Racing) 6,500 Advertising Expense Depreciation Expense 8,600 Income Tax Expense 13,200 Required information 2800 Assets Current Assets: Cash Prepaid Insurance Prepaid Rent Supplies (Office) Supplies (Racing) December 31, 2021 Liabilities Current Liabilities: 84,110 Accounts Payable 2,820 Interest Payable 2,480 Income Tax Payable 400 390 Total Current Liabilities 950 13,200 16,950 90,200 16,950 Total Current Assets Long-term assets Equipment (Bikes) Equipment (Kayaks) Accumulated Depreciation Total Liabilities Stockholders' Equity Common Stock Retained Earning 16 500 26.600 (7,200) 27.000 142 850 83 Total Stockholders Equity Total Liabilities and Stockholders' Equity 126 100 69.850 86.800 Strnt of Stockholders Equity