This is now my SIXTH time posting this question and I got no response over this past couple of days... Why is that? I provided all the information needed for it? Can someone PLEASE help me correct part 3. I believe part 1 and 2 is correct. I posted part 3 earlier, but I got a majority of the bottom half of part 3 incorrect due to that answer. I have fixed part 3, but I need to make sure it is correct. I have to submit this assignment tonight...
nitiative Great Adventures Problem AP3-1 (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, they'lhold 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 36,000 shares of common stock for S1 cach. Each share of stock represents a unit of ownership. Tony and Suzie wil act as co presidents of the company. The following transactions occur from July 1 through December 31 Jul. Sell $10,000 o motock to Suis. Jul. Sell $10,000 of common stock to Tony. Jul. 1 Purchase one-year insurance policy for $5,040 (5420 per month to correr injuries to participants No. 2 Pay Day legal fuss at $1,100 Related with incoporation. Jul. 4 Purchase of the wuppies of $1,700 on account. Jol Day for advertising of 5320 to local navapaper for an upening mountain biking clinic to be held on July 15. Attendees will be charged $40 on the day of the line Jul. . Purchase 10 mountain is bikes, paying $19,400 cash. Jul. 15 Ce the day of the clinic, Great Adventures receive cash of $2,000 from 50 bikers. Tony conducts the mountain biking clinic. Tel. 22 Because of the success of the first sountain biking clinic, Sony holds another mountain biking clinic and the company w $2,390. Tel. 24 pay $740 to local radio station for advertising to appear immediately. A kayaking clinic will be held on 10, and attendees can pay $120 in advance or $170 on the day of the clinic. Tel. Great Adventures receive of $4,000 in advance from 4D kayakurs for the pooming kayak clinic Aug. 1 Great Adventures obtaina . $42,000 low-interest lose to the company from the city council, which has recently iwe encouraging business development related to outdoor activities. The Loan 12 dae in three mare, dar interest is due each year on July 31. Aug. dag: 10 Senty national kayakuru pay $3,400 15170 each), in addition to the 54,400 that was paid in advance July 3, on the day of the clinic. Tot condecta the first kayak clinic. Arag. 17 Tony conducta second kayak clinic, and the company receiver $12,00 cash. Arag. 24 office supplies of $1,700 perched on July are paid in full. Sep. 1 to provide better storage of mountain bikes and kayak when not in use, the company rente storage ahed for one year, paying $3,360 ($200 per month) is advance. Sep. 21 Pony conducta rock-climbing clinic. The company receives $24,500 cash Oct. 17 Tony conducta an orienteering clinic. Participants practice how to understand topographical rap, Tead an altitur, ucapans, and orient through heavily wooded area. The company receive $18,000 cash. sony a to hold the company's first adventure race on December 15. Four-parton tu vill race tron checkpoint to checkpoint using combination of sountain biking, kayaking, orientering, trail running, and rock-climbing atilla. The first team is cach category to complete all checkpointa in order wina. The entry toe for each teu sa $690. to help organize and promote the race, Soay hire his college commate, Victor. Victor will be paid $in salary for each teen that compates in the race. lix salary will be paid after the race. The company pay $1,000 to purchase peent from a state park where the race will be held. The amount is recorded a Dec. 12 The compay purchases racing supplies for $2,300 account des in 30 daya. Supplies include trophies for the top-finishing tous is each category, promotional shirta, snack foods and drinks for participants, and teid sarkara to prepare the recoure. Dec. 15 The company receives 527,60D Canh tra total of forty teams, and the race is held. Dec. 18 The compasy pays Victor's malery of $2,400. Dec. 31 The copy pays dividend of $4,300 52,150 to Tony and $2,250 to Sarie). Dec. 31 Daing his personal money, Tony purchases diamond ring for $3,600. Toey surprise 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, 2021. a Depreciation of the mountain bikes purchased on July 8 and kayaks purchased on August 4 totals $8.700. b. Six months of the one year insurance policy purchased on July 1 has expired. Four months of the one year rental agreement purchased on September 1 has expired. d of the $1,700 of office supplies purchased on July 4, $310 remains e Interest expense on the $42.000 loan obtained from the city council on August 1 should be recorded t Of the $2,300 of racing supplies purchased on December 12, $150 remains. 9. Suzie calculates that the company owes $13,400 in income taxes. Dec. Dec. Dec. Great Adventures Problem AP3-1 Part 1 Required: 1. Record transactions from July 1 through December 31. Of no entry is required for a transaction/event, select "No Journal entry required in the first account field.) View transactional View journal entry warhaat No Date General Journal Credit 1 Debit 18,000 Jul 01, 2021 Cash Commen Stock 18,000 2 Jul 01, 2021 18,000 Cash Canimon Stock 18,000 Jul 01, 2021 5,040 Prepaid Insurance Cash 5,040 Jul 02, 2021 1,100 Legal Fees Expense Cash 1,100 Jul 04, 2021 1,700 Supplies Office Accounts Payable 1,700 Jul 07, 2021 320 Advertising Expense Cash 320 Jul 08, 2021 19,400 Equipment Bies) Cash 19,400 Jul 15, 2021 2,000 Cash Service Revenue (Clinic 2,000 Jul 22.2021 2,350 Cash Service Revenue 2,350 Great Adventures Problem AP3-1 Part 2 2. Record adjusting entries as of December 31, 2021. (if no entry is required for a transaction/event, select "No journal entry required in the first account field.) View transactional View journal entry warheet Date General Journal Dec 31, 2021 Depreciation Expense Accumulated Depreciation No Credit Debit &,700 8,700 2 2,520 Dec 31, 2021 Insurance Expense Prepaid insurance 2,520 Dec 31, 2021 1,120 Rent Expense Prepaid Rent 1,120 1,350 Dec 31, 2021 Suppies Expense (Office) Supplies (Office) 1,290 5 1,050 Dec 31, 2021 Interest Expense Interest Payable 1,050 2,150 Dec 31, 2021 Supplies Expense (Racing) Supplies (Racing 2,150 Dec 31, 2021 13,400 Income Tax Expand Income Tax Payable 13,400 Great Adventures Problem AP3-1 Part 3 3. Post transactions from July 1 through December 31 and adjusting entries on December 31 to T-accounts. Cash Prepaid insurance 18,550 Beg Bal Jul 1 18,000 5,040 2,520 Dec 31 18,000 2,000 2,350 4,800 Beg Bal ul. 1 ul. 1 ul. 15 Ju. 22 ul. 30 Aug 1 Aug. 10 Aug 17 Sep 21 Oct. 17 Dec 15 42,000 5,0401 1,1002 320 Jul. 7 19,400 JB 740 u. 24 18,200 Aug 4 1,700 Aug 24 3,360 Sep 1 1,800 Die 2,400 Dec 16 4,300 Dec 31 3,400 End. Bal 2,520 12,000 14,500 18,000 27,000 End. Bal 122,840 Prepaid Rent Supplies Office Beg Bal Sep 1 Beg Bal 3,360 1,120 Dec 31 1.700 1,390 Dec 31 End. Bal. 2.240 End Bal 310 Supplies (Racing Equipment Bikes Beg Bal Dec 12 Beg Bal JUL 8 2.300 2,150 Dec 31 19,400 End. Bal 150 End Bal 19,400 Equipment (Kayaks Accumulated Depreciation Beg Bal Beg Bal Aug 4 18,200 8,700 Dec 31 End. Bal 18,200 End Bal 8,700 Accounts Payable Deferred Revenue Beg Bal Aug 24 Beg Bal Aug 10 1,700 4,800 4,900 CM 30 1,700 Jul. 4 2,900 Dec 12 2,300 End Bal End Bal 0 Interest Payable Income Tax Payable Beg Bal Beg Bal 1,050 Dec. 31 13,400 Dec. 31 End Bal 1,050 End. Bal 13,400 Notes Payable Common Stock Beg Bal Beg Bal 35,000 42,000 Aug 1 End. Bal 42,000 End. Bal 35,000 Dividends Service Revenue Cine 4,350 Beg Bad Beg Bal Dec 31 4,300 4,300 Dec 31 End. Bal 8,200 Aug. 10 12,000 Aug 17 14,500 Sep 21 39,050 End Bal Service Ravena Racing Advertising Expense Beg Bal 27,000 Beg Bal Jul. Jul 24 320 740 1,050 End. Bal 27,000 End Ral Legal Fees Expense Miscellaneous Expense Beg Bal Jul.2 Beg Bal Dec 1,100 1,800 End. Bal 1,100 End Bal 1,800 Salaries Expense Depreciation Expense | Bap Bal. Beg Bal Dec. 16 2,400 Dec 31 8,700 End. Bal 2,400 End. Bal 8,700 Insurance Expense Rent Expense Beg Bal Dec. 31 Beg Bal Dec 31 2,520 1,120 End. Bal 2,520 End Bal 1,120 Supplies Expense (Office) Supplies Expense Racing) Beg Bal Beg Bal Dec 31 1,390 Dec 31 2,150 End. Bal 1910 End Bal 2,150 Interest Expense Income Tax Expense | Bap Bal. Dec. 31 Beg Bal Dec 31 1,050 13,400 I Ford Ral 1.050 Inil Ral 13.4001 nitiative Great Adventures Problem AP3-1 (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, they'lhold 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 36,000 shares of common stock for S1 cach. Each share of stock represents a unit of ownership. Tony and Suzie wil act as co presidents of the company. The following transactions occur from July 1 through December 31 Jul. Sell $10,000 o motock to Suis. Jul. Sell $10,000 of common stock to Tony. Jul. 1 Purchase one-year insurance policy for $5,040 (5420 per month to correr injuries to participants No. 2 Pay Day legal fuss at $1,100 Related with incoporation. Jul. 4 Purchase of the wuppies of $1,700 on account. Jol Day for advertising of 5320 to local navapaper for an upening mountain biking clinic to be held on July 15. Attendees will be charged $40 on the day of the line Jul. . Purchase 10 mountain is bikes, paying $19,400 cash. Jul. 15 Ce the day of the clinic, Great Adventures receive cash of $2,000 from 50 bikers. Tony conducts the mountain biking clinic. Tel. 22 Because of the success of the first sountain biking clinic, Sony holds another mountain biking clinic and the company w $2,390. Tel. 24 pay $740 to local radio station for advertising to appear immediately. A kayaking clinic will be held on 10, and attendees can pay $120 in advance or $170 on the day of the clinic. Tel. Great Adventures receive of $4,000 in advance from 4D kayakurs for the pooming kayak clinic Aug. 1 Great Adventures obtaina . $42,000 low-interest lose to the company from the city council, which has recently iwe encouraging business development related to outdoor activities. The Loan 12 dae in three mare, dar interest is due each year on July 31. Aug. dag: 10 Senty national kayakuru pay $3,400 15170 each), in addition to the 54,400 that was paid in advance July 3, on the day of the clinic. Tot condecta the first kayak clinic. Arag. 17 Tony conducta second kayak clinic, and the company receiver $12,00 cash. Arag. 24 office supplies of $1,700 perched on July are paid in full. Sep. 1 to provide better storage of mountain bikes and kayak when not in use, the company rente storage ahed for one year, paying $3,360 ($200 per month) is advance. Sep. 21 Pony conducta rock-climbing clinic. The company receives $24,500 cash Oct. 17 Tony conducta an orienteering clinic. Participants practice how to understand topographical rap, Tead an altitur, ucapans, and orient through heavily wooded area. The company receive $18,000 cash. sony a to hold the company's first adventure race on December 15. Four-parton tu vill race tron checkpoint to checkpoint using combination of sountain biking, kayaking, orientering, trail running, and rock-climbing atilla. The first team is cach category to complete all checkpointa in order wina. The entry toe for each teu sa $690. to help organize and promote the race, Soay hire his college commate, Victor. Victor will be paid $in salary for each teen that compates in the race. lix salary will be paid after the race. The company pay $1,000 to purchase peent from a state park where the race will be held. The amount is recorded a Dec. 12 The compay purchases racing supplies for $2,300 account des in 30 daya. Supplies include trophies for the top-finishing tous is each category, promotional shirta, snack foods and drinks for participants, and teid sarkara to prepare the recoure. Dec. 15 The company receives 527,60D Canh tra total of forty teams, and the race is held. Dec. 18 The compasy pays Victor's malery of $2,400. Dec. 31 The copy pays dividend of $4,300 52,150 to Tony and $2,250 to Sarie). Dec. 31 Daing his personal money, Tony purchases diamond ring for $3,600. Toey surprise 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, 2021. a Depreciation of the mountain bikes purchased on July 8 and kayaks purchased on August 4 totals $8.700. b. Six months of the one year insurance policy purchased on July 1 has expired. Four months of the one year rental agreement purchased on September 1 has expired. d of the $1,700 of office supplies purchased on July 4, $310 remains e Interest expense on the $42.000 loan obtained from the city council on August 1 should be recorded t Of the $2,300 of racing supplies purchased on December 12, $150 remains. 9. Suzie calculates that the company owes $13,400 in income taxes. Dec. Dec. Dec. Great Adventures Problem AP3-1 Part 1 Required: 1. Record transactions from July 1 through December 31. Of no entry is required for a transaction/event, select "No Journal entry required in the first account field.) View transactional View journal entry warhaat No Date General Journal Credit 1 Debit 18,000 Jul 01, 2021 Cash Commen Stock 18,000 2 Jul 01, 2021 18,000 Cash Canimon Stock 18,000 Jul 01, 2021 5,040 Prepaid Insurance Cash 5,040 Jul 02, 2021 1,100 Legal Fees Expense Cash 1,100 Jul 04, 2021 1,700 Supplies Office Accounts Payable 1,700 Jul 07, 2021 320 Advertising Expense Cash 320 Jul 08, 2021 19,400 Equipment Bies) Cash 19,400 Jul 15, 2021 2,000 Cash Service Revenue (Clinic 2,000 Jul 22.2021 2,350 Cash Service Revenue 2,350 Great Adventures Problem AP3-1 Part 2 2. Record adjusting entries as of December 31, 2021. (if no entry is required for a transaction/event, select "No journal entry required in the first account field.) View transactional View journal entry warheet Date General Journal Dec 31, 2021 Depreciation Expense Accumulated Depreciation No Credit Debit &,700 8,700 2 2,520 Dec 31, 2021 Insurance Expense Prepaid insurance 2,520 Dec 31, 2021 1,120 Rent Expense Prepaid Rent 1,120 1,350 Dec 31, 2021 Suppies Expense (Office) Supplies (Office) 1,290 5 1,050 Dec 31, 2021 Interest Expense Interest Payable 1,050 2,150 Dec 31, 2021 Supplies Expense (Racing) Supplies (Racing 2,150 Dec 31, 2021 13,400 Income Tax Expand Income Tax Payable 13,400 Great Adventures Problem AP3-1 Part 3 3. Post transactions from July 1 through December 31 and adjusting entries on December 31 to T-accounts. Cash Prepaid insurance 18,550 Beg Bal Jul 1 18,000 5,040 2,520 Dec 31 18,000 2,000 2,350 4,800 Beg Bal ul. 1 ul. 1 ul. 15 Ju. 22 ul. 30 Aug 1 Aug. 10 Aug 17 Sep 21 Oct. 17 Dec 15 42,000 5,0401 1,1002 320 Jul. 7 19,400 JB 740 u. 24 18,200 Aug 4 1,700 Aug 24 3,360 Sep 1 1,800 Die 2,400 Dec 16 4,300 Dec 31 3,400 End. Bal 2,520 12,000 14,500 18,000 27,000 End. Bal 122,840 Prepaid Rent Supplies Office Beg Bal Sep 1 Beg Bal 3,360 1,120 Dec 31 1.700 1,390 Dec 31 End. Bal. 2.240 End Bal 310 Supplies (Racing Equipment Bikes Beg Bal Dec 12 Beg Bal JUL 8 2.300 2,150 Dec 31 19,400 End. Bal 150 End Bal 19,400 Equipment (Kayaks Accumulated Depreciation Beg Bal Beg Bal Aug 4 18,200 8,700 Dec 31 End. Bal 18,200 End Bal 8,700 Accounts Payable Deferred Revenue Beg Bal Aug 24 Beg Bal Aug 10 1,700 4,800 4,900 CM 30 1,700 Jul. 4 2,900 Dec 12 2,300 End Bal End Bal 0 Interest Payable Income Tax Payable Beg Bal Beg Bal 1,050 Dec. 31 13,400 Dec. 31 End Bal 1,050 End. Bal 13,400 Notes Payable Common Stock Beg Bal Beg Bal 35,000 42,000 Aug 1 End. Bal 42,000 End. Bal 35,000 Dividends Service Revenue Cine 4,350 Beg Bad Beg Bal Dec 31 4,300 4,300 Dec 31 End. Bal 8,200 Aug. 10 12,000 Aug 17 14,500 Sep 21 39,050 End Bal Service Ravena Racing Advertising Expense Beg Bal 27,000 Beg Bal Jul. Jul 24 320 740 1,050 End. Bal 27,000 End Ral Legal Fees Expense Miscellaneous Expense Beg Bal Jul.2 Beg Bal Dec 1,100 1,800 End. Bal 1,100 End Bal 1,800 Salaries Expense Depreciation Expense | Bap Bal. Beg Bal Dec. 16 2,400 Dec 31 8,700 End. Bal 2,400 End. Bal 8,700 Insurance Expense Rent Expense Beg Bal Dec. 31 Beg Bal Dec 31 2,520 1,120 End. Bal 2,520 End Bal 1,120 Supplies Expense (Office) Supplies Expense Racing) Beg Bal Beg Bal Dec 31 1,390 Dec 31 2,150 End. Bal 1910 End Bal 2,150 Interest Expense Income Tax Expense | Bap Bal. Dec. 31 Beg Bal Dec 31 1,050 13,400 I Ford Ral 1.050 Inil Ral 13.4001
