The rolowing iniormation appies to the questions dispiayed 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 39,000 shares of common stock for $1 cach. Each share of stock represents a unit of ownership. Tony and Suzic will act as co presidents of the company. The following business activities occur during July for Great Adventures. Jul.1 Sell $19,500 of common stock to Suzie. Jul. 1 Sell $19,500 of common stock to Tony. Jul. 1 Purchase a one-year insurance policy for $4,920 ($410 per month) to cover injuries to participants during outdoor clinics. Jul. 2 Pay legal fees of $1,600 assoclated with Incorporation. Jul. 4 Purchase office supplies of $1,500 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 $50 the day of the clinic. Jul. 8 Purchase 10 mountain bikes, paying $14,100 cash. Jul. 15 On the day of the clinic, Great Adventures receives cash of $3,000 from 60 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 $3,500. Jul. 24 Pay for advertising of $800 to a local radlo statlon for a kayaking clinic to bo held on August 10. Attendees can pay $100 in advance or $150 on the day of the clinic. Jul. 30 Great Adventures receives cash of $7,000 in advance from 70 kayakers for the upcoming kayak clinic. Aug. 1 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 years, and 6% annual interest is due each year on July 31. Aug. 4 The company purchases 14 kayaks, paying $14,300 cash. Aug. 10 Twenty additional kayakers pay $3,000 ($150 each), in addition to the $7,000 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 recelves $11,600 cash. Aug. 24 Office supplies of $1,500 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 $3,720 ($310 per month). Sep. 21 Tony conducts a rock-climbing clinic. The company receives $14,400 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 $18,500 cash. Dec. 1 Tony decides to hold the company's first adventure race on December 15. Four person teams will racc from checkpoint to checkpoint using a combination of mountain biking, kayaking, orlenteering, 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 $530.Dec. 5 To help organize and promote the race, Tony hires his college roommate, Victor. Victor will be paid $60 in salary for each team that competes in the race. His salary will be paid after the race Dec. 8 The company pays $1,300 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 $2,600 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 $21,200 cash from a total of forty teams, and the race is held.Dec. 16 The company pays Victor's salary of $2,400. Dec. 31 The company pays a dividend of $4,700 ($2,350 to Tony and $2,350 to Suzic). Dec. 31 Using his personal money. Tony purchases a diamond ring for $3,600. 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 $8,800. b. S months' worth of insurance has explred. C. Four months' worth of rent has expired. d. Of the $1,500 of office supplies purchased on July 4, $360 remains. e. Interest expense on the $35,000 loan obtained from the city council on August 1 should be recorded. f Of the $2,600 of racing supplies purchased on December 12, $150 remains. g. Suzie calculates that the company owes $13,200 in income taxes, Assume the following ending balances for the month of July 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 $ 30,690 4,920 1,500 14,100 1,500 7,000 39,000 6,500 1,190 1,600 value 10.00 points 3. Post transactions from August 1 through December 31 and adjusting entries on December 31 to T-accounts. (Be sure to include beginning balances in the T-accounts.) 7.1 Required information 10.00 points 4. Prepare an adjusted trial balance as of December 31, 2018(The Items in the Trial Balance should be grouped as follows: Assets, Contra-asset accounts, Liabilities, Equity, Dividends, Revenues, and Expenses.) The following information applies to the questions displayed below) Now that operations for outdoor clinics and TEAM events are running smoothly. Suzie thinks of another area for business expansion. She notices that a few clinic participants wear multiuse (MU) watches. Beyond the normal timekeeping features of mast watches, MU watches are able to report temperature, altitude, and barometric pressure. MU watches are wateproof, so molsture fram kayaking, rain, fishing, ar even diving up to 100 feet won't damage them. Suzie decides to have MU watches available for sale at the start of each clinic. The following transactions relate to purchases and sales of watches during the second half of 2019. All watches are sold for $292 each. Jul. 17 Purchased 42 watches for $5,964 (S142 per watch) on account. l. 31 Sold 32 watches for $9,344 cash Aug. 12 Purchased 32 watches for $4,864 ($152 per watch) cash. Aug. 22 Sold 22 watches for $6,424 on account. Sep. 19 Paid for watches ordered on July 17 Sep. 27 Recelved full payment for watches sold on account on August 22. Oct. 27 Purchased 72 watchcs for $11,664 $162 per watch) cash. Nov. 20 Sold 82 watches for $23,944 cash. Dec. 4 Purchased 104 watches for $17,888 ($172 per watch cash. Dec. 8 Sold 32 watches for $9,344 on account. value 10.00 points Required 1-a. Calculate sales revenue, cost of goods sold, and ending inventory as of December 31, 2019, assuming Suzie uses FIFO to account for inventory. 16. 10. points Required information 2. Late in December, the next generation of multiuse (MU II) watches is released. In addition to all of the features of the MU watch, the MU Il watches are equipped with a global positioning system (GPS) and have watch. the ability to download and play songs and videos off the intemet. The demand for the original MU watches is greatly reduced. As of Decamber 31, the estimated net realizable value of MU watches is only $92 per a. Record any necessary adjustment on December 31, 2019, related to this information(f no entry is required for a transaction/event, select "No journal entry required" in the first account field.) b. For what amount would MU inventory be reported in the December 31, 2019, balance sheet? MU inventory c. Prepare an updated gross profit section of a partial income statement accounting for this additional information GREAT ADVENTURES, INC. Partial Income Statement For the Year Ended December 31, 2019 Gross profit