Tony and Suzie graduate from college in May $2024$ 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$$ll 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 $1,2024,$ Tony and Suzie organize their new company as a corporation, Great Adventures Incorporated The articles of incorporation state that the corporation will sell $32,000$ 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 business activities occur during July for Great Adventures.

July $1$ Sell $$16,000$ of common stock to Suzie.

July $1$ Sell $$16,000$ of common stock to Tony.

July $1$ Purchase a one$-$year insurance policy for $$4,080($$$340$ per month$)$ to cover injuries to participants during outdoor clinics.

July $2$ Pay legal fees of $$1,400$ associated with incorporation.

July $4$ Purchase office supplies of $$1,200$ on account.

July $7$ Pay $$360$ to a local newspaper for advertising to appear immediately for an upcoming mountain biking clinic to be held on July $15.$ Attendees will be charged $$60$ on the day of the clinic.

July $8$ Purchase $10$ mountain bikes, paying $$17,500$ cash.

July $15$ On the day of the clinic, Great Adventures receives cash of $$4,200$ from $70$ bikers. Tony and Suzie conducts the mountain biking clinic.

July $22$ Because of the success of the first mountain biking clinic, Tony and Suzie holds another mountain biking clinic, and the company receives $$4,600.$

July $24$ Pay $$870$ to a local radio station for advertising to appear immediately. A kayaking clinic will be held on August $10,$ and attendees can pay $$130$ in advance or $$180$ on the day of the clinic.

July $30$ Great Adventures receives cash of $$9,100$ in advance from $70$ kayakers for the upcoming kayak clinic.

The following transactions occur over the remainder of $2024.$

August $1$ Great Adventures obtains a $$42,000$ 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 $31.$

August $4$ The company purchases $14$ kayaks, paying $$20,900$ cash.

August $10$ Tony and Suzie conduct the first kayak clinic. In addition to the $$9,100$ that was received in advance from kayakers on July $30,$ the company receives additional cash of $$3,600$ from $20$ new kayakers on the day of the clinic.

August $17$ Tony and Suzie conducts a second kayak clinic, and the company receives $$10,800$ cash.

August $24$ Office supplies of $$1,200$ purchased on July $4$ are paid in full.

September $1$ To provide better storage of mountain bikes and kayaks when not in use, the company rents a storage shed for one year, paying $$3,240($$$270$ per month$)$ in advance.

September $21$ Tony and Suzie conduct a rock$-$climbing clinic. The company receives $$14,600$ cash.

October $17$ Tony and Suzie conduct 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 $$18,700$ cash.

December $1$ Tony and Suzie decide to hold the company$$s first adventure race on December $15.$ Four$-$person teams will race from checkpoint to checkpoint using a combination of mountain biking, kayaking, orienteering, trail running, and rock$-$climbing skills. The first team in each category to complete all checkpoints in order wins. The entry fee for each team is $$640.$

December $5$ To help organize and promote the race, Tony hires his college roommate, Victor. Victor will be paid $$30$ in salary for each team that competes in the race. His salary will be paid after the race.

December $8$ 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.

December $12$ 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.

December $15$ The company receives $$25,600$ cash from a total of forty teams, and the race is held.

December $16$ The company pays Victor$$s salary of $$1,200.$

December $31$ The company pays a dividend of $$4,100($$$2,050$ to Tony and $$2,050$ to Suzie$).$

December $31$ Using his personal money, Tony purchases a diamond ring for $$5,300.$ 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 $31,2024.$

Depreciation of the mountain bikes purchased on July $8$ and kayaks