This is a matter of accounting. Help me complete the form 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 proyided for the month ended July 31 The articles of incorporation state that the corporation will sell 23,000 shares of common stock for $1 each. Each share of stock represents a unit of ownership. Tony and SuZie will act as co-presiden'ts of the company. The following business activities occur during July 'lor Great Adventures. Jul. 1 Sell $11,500 of common stock to Suzie. Jul. 1 Sell $11,500 of common stock to Tony. Jul. 1 Purchase a one-year insurance policy for 354-3200713130 per month) to cover injuries to participants during outdoor clinics. Jul. 2 Pay legal fees of $1,200 associated with incorporation. Jul. 4 Purchase ofce supplies of $1,600 on account. Jul. 7 Pay for advertising of $270 to a local newspaper for an upcoming mountain biking clinic to be held on July 15. Attendees will be charged $40 the day ofthe clinic. Jul. 8 Purchase 10 mountain bikes, paying $11900 cash. Jul. 15 On the day of the clinic, Great Adventures receives cash of $2,400 from 50 bikers. Tony conducts the mountain biking clinic. Jul. 22 Because of the success ofthe rst mountain biking clinic, Tony holds another mountain biking clinic and the company receives $2,900. Jul. 24 Pay for advertising of $700 to a local radio station for a kayaking clinic to be held on August 10. Attendees can pay $120 in advance or $170 on the day ofthe clinic. Jul. 30 Great Adventures receives cash of $8,400 in advance from 7'0 kayakers for the upcoming kayak clinic. Aug. 1 Great Adventures obtains a $40,000 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 5% annual interest is due each year on July 31. Aug. 4 The company purchases 14 kayaks, paying $19,000 cash. Aug. 10 Twenty additional kayakers pay $3,400 ($170 each), in addition to the $8,400 that was paid in advance on July 30, on the day of the clinic. Tony conducts the rst kayak clinic. Aug. 17 Tony conducts a second kayak clinic, and the company receives $10,700 cash. Aug 24- Ofce supplies of$1,600 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 oneeyear rental policy 'for $2,400 {$200 per month}. Sep. 21 Tony conducts a rock-climbing clinic. The company receives $14,300 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 $18300 cash. Dec. 1 Tony decides to hold the company's rst 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 rst team in each category to complete all checkpoints in order wins. The entry fee for each team is $650Dec. 5 To help organize and promote the race, Tony hires his college roommate, Victor. Victor will be paid $40 in salary'l'or each team that competes in the race. His salary Will be paid afterthe raceDec. B The company pays $1,800 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,?00 on account due in 30 days. Supplies include trophies for the top-nishing teams in each category, promotional shins, snack foods and drinks for participants, and eld markers to prepare the racecourseDec. 15 The company receives $26,000 cash from a total of forty teams, and the race is held.Dec.1B The company pays Victor's salary of $1,600. Dec. 31 The company pays a dividend of $3,400 [$1.700 to Tony and $1,700 to Suzie). Dec. 31 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 marriedl 5-c. Prepare a classied balance sheet as of December 31, 2018. [Amounts to be deducted should be indicated with minus sign} Tmalwrmnwabiwes il Totalswckhowersequw _ Total liabilities and stockholders equity 6. Record closing entries as of December 31, 2018. [If no entry is required for a transactionlevent, select "No journal entry required" in the rst account eld.) View transaction list Journal entry worksheet Record the closing of revenue accounts. Note: Enter debits before credits. Record entry Clear entry View general journal The following information relates to yea re nd adjusting entries as of December 31. 2013. a. Depreciation of the mountain bikes purchased on July 3 and kayaks purchased on ugust 4 totals $1500. b. Six months' worm of insurance has expired. c. Four morrdis' worth of rent has expired. d. Of the $1.000 of ofce supplies purchased on July 4. $260 remains. e. Interest expense on the $40000 loan obtained from the cityr council on Augustl should be recorded. f. thhe $2300 of racing supplies purchased on December 12. $120 remains. g. Suzie calculates that the company owes $14,000 in income taxes. ssume the following ending balances for the month of July. Bola FICE' Cash 51 13.310 Prepaid Insurance 4.320 Supplies {Ufoej 1,000 Equipment [Bikes] 11.000 Accounts paya ble 1,500 Deferred revenue 8.400 Eomm on stoc k: 23.000 Se rylce revenu e {Clinic} 5.300 Advertising expe nse 900 Legal fees expe nse 1.200 ' Required: 1. Record transactions from July 1 through December 31. (If no entry is required for a transactionievent. select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Sell $11,500 of common stock to Suzie. Note: Enter debits before credits. Jul 01, 2018 Clear entry View general journal 2. Record adjusting entries as of December 31, 2018. (If no entry is required for a transactionievent, select "No journal entry required" in the first acoou nt field.) View transaction list Journal entry worksheet Depreciation of the mountain bikes purchased on Juljj:r B and kayaks purchased on August 4 totals $7,600. Note: Enter debits before credits. Record entryI Clear entry 1nl'ieiiir general journal 3. Post transactions from August 1 through December 31 and adjusting entries on December 31 to Taccounts. (Be sure to include beginning balances in the T-accounts.) End. Bal. D End. Bal. 1] End. Bal. [II \f4. Prepale an adjusted trial balance as of Decembet 31, 2018. [The items in the Trial Balance should be grouped as follows: Assets, contra-asset accounts, Liabilities, Equity, Dividends, Revenues, and Expenses.)
