The Transaction List

1. Sell $15,500 of common stock to Suzie.

2. Sell $15,500 of common stock to Tony.

3. Purchase a one-year insurance policy for $5,160 ($430 per month) to cover injuries to participants during outdoor clinics.

4. Pay legal fees of $1,100 associated with incorporation.

5. Purchase office supplies of $1,900 on account.

6. Pay for advertising of $320 to a local newspaper for an upcoming mountain biking clinic to be held on July 15. Attendees will be charged $60 on the day of the clinic.

7. Purchase 10 mountain bikes, paying $13,300 cash.

8. On the day of the clinic, Great Adventures receives cash of $3,000 from 50 bikers. Tony conducts the mountain biking clinic.

9. Because of the success of the first mountain biking clinic, Tony holds another mountain biking clinic and the company receives $3,500.

10. Pay $910 to a local radio station for advertising to appear immediately. A kayaking clinic will be held on August 10, and attendees can pay $110 in advance or $160 on the day of the clinic.

11. Great Adventures receives cash of $6,600 in advance from 60 kayakers for the upcoming kayak clinic.

12. Great Adventures obtains a $45,000 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.

13. The company purchases 14 kayaks, paying $25,200 cash.

14. Twenty additional kayakers pay $3,200 ($160 each), in addition to the $6,600 that was paid in advance on July 30, on the day of the clinic. Tony conducts the first kayak clinic.

15. Tony conducts a second kayak clinic, and the company receives $11,300 cash.

16. Office supplies of $1,900 purchased on July 4 are paid in full.

17. To provide better storage of mountain bikes and kayaks when not in use, the company rents a storage shed for one year, paying $3,360 ($280 per month) in advance.

18. Tony conducts a rock-climbing clinic. The company receives $15,100 cash.

19. 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 $19,800 cash.

20. Tony decides to hold the companys first adventure race 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 $700.

21. To help organize and promote the race, Tony hires his college roommate, Victor. Victor will be paid $40 in salary for each team that competes in the race. His salary will be paid after the race.

22. 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.

23. The company purchases racing supplies for $2,000 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.

24. The company receives $28,000 cash from a total of forty teams, and the race is held.

25. The company pays Victors salary of $1,600.

26. The company pays a dividend of $3,400 ($1,700 to Tony and $1,700 to Suzie).

27. Using his personal money, Tony purchases a diamond ring for $4,700. Tony surprises Suzie by proposing that they get married. Suzie accepts and they get married.

28. Prepare the adjusting entry for depreciation. Depreciation of the mountain bikes purchased on July 8 and kayaks purchased on August 4 totals $7,700.

29. Prepare the adjusting entry for insurance. Six months of the one-year insurance policy purchased on July 1 has expired.

30. Prepare the adjusting entry for rent. Four months of the one-year rental agreement purchased on September 1 has expired.

31. Prepare the adjusting entry for office supplies. Of the $1,900 of office supplies purchased on July 4, $290 remains.

32. Prepare the adjusting entry for interest. Interest expense on the $45,000 loan obtained from the city council on August 1 should be recorded.

33. Prepare the adjusting entry for racing supplies. Of the $2,000 of racing supplies purchased on December 12, $130 remains.

34. Prepare the adjusting entry for income taxes. Suzie calculates that the company owes $14,300 in income taxes.

35. Prepare the closing entry for revenue.

36. Prepare the closing entry for expenses.

37. Prepare the closing entry for cash dividends.

Prepare the journal entries for transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Prepare the journal entries for transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)