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, theyll 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 $1,2021,$ Tony and Suzie organize their new company as a corporation, Great Adventures Inc. The articles of incorporation state that the corporation will sell $20,000$ shares of common stock for $$1$ each. Each share of stock represents a unit of ownership. Tony and Suzie will act as co$-$presidents of the company. The following transactions occur from July $1$ through December $31.$ Jul. $1$ Sell $$10,000$ of common stock to Suzie.Jul. $1$ Sell $$10,000$ of common stock to Tony.Jul. $1$ Purchase a one$-$year insurance policy for $$4,800($$$400$ per month$)$ to cover injuries to participants during outdoor clinics.Jul. $2$ Pay legal fees of $$1,500$ associated with incorporation.Jul. $4$ Purchase office supplies of $$1,800$ on account.Jul. $7$ Pay for advertising of $$300$ to a local newspaper for an upcoming mountain biking clinic to be held on July $15.$ Attendees will be charged $$50$ on the day of the clinic.Jul. $8$ Purchase $10$ mountain bikes, paying $$12,000$ cash.Jul. $15$ On the day of the clinic, Great Adventures receives cash of $$2,000$ from $40$ bikers. Tony conducts the mountain biking clinic.Jul. $22$ Because of the success of the first mountain biking clinic, Tony holds another mountain biking clinic and the company receives $$2,300.$Jul. $24$ Pay $$700$ to a local radio station for advertising to appear immediately. A kayaking clinic will be held on August $10,$ and attendees can pay $$100$ in advance or $$150$ on the day of the clinic.Jul. $30$ Great Adventures receives cash of $$4,000$ in advance from $40$ kayakers for the upcoming kayak clinic.Aug. $1$ Great Adventures obtains a $$30,000$ low$-$interest loan for the company from the city council, which has recently passed an initiative encouraging business development related to outdoor activities. The loan is due in three years, and $6\%$ annual interest is due each year on July $31.$Aug. $4$ The company purchases $14$ kayaks, paying $$28,000$ cash.Aug. $10$ Twenty additional kayakers pay $$3,000($$$150$ each$),$ in addition to the $$4,000$ that was paid in advance on July $30,$ on the day of the clinic. Tony conducts the first kayak clinic.Aug. $17$ Tony conducts a second kayak clinic, and the company receives $$10,500$ cash.Aug. $24$ Office supplies of $$1,800$ purchased on July $4$ are paid in full.Sep. $1$ To provide better storage of mountain bikes and kayaks when not in use, the company rents a storage shed for one year, paying $$2,400($$$200$ per month$)$ in advance.Sep. $21$ Tony conducts a rock$-$climbing clinic. The company receives $$13,200$ 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 $$17,900$ cash.Dec. $1$ Tony decides to hold the companys first adventure race on December $15.$ Four$-$person teams will race from checkpoint to checkpoint using a combination of mountain biking, kayaking, orienteering, trail running, and rock$-$climbing skills. The first team in each category to complete all checkpoints in order wins. The entry fee for each team is $$500.$Dec. $5$ To help organize and promote the race, Tony hires his college roommate, Victor. Victor will be paid $$50$ in salary for each team that competes in the race. His salary will be paid after the race.Dec. $8$ The company pays $$1,200$ 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 $$2,800$ on account due in $30$ days. Supplies include trophies for the top$-$finishing teams in each category, promotional shirts, snack foods and drinks for participants, and field markers to prepare the racecourse.Dec. $15$ The company receives $$20,000$ cash from a total of forty teams, and the race is held.Dec. $16$ The company pays Victors salary of $$2,000.$Dec. $31$ The company pays a dividend of $$4,000($$$2,000$ to Tony and $$2,000$ to Suzie$).$Dec. $31$ Using his personal money, Tony purchases a diamond ring for $$4,500.$ Tony surprises Suzie by proposing that they get married. Suzie accepts and they get married! The following information relates to year$-$end adjusting entries as of December $31,2021.$Depreciation of the mountain bikes purchased on July $8$ and kayaks purchased on August $4$ totals $$8,000.$Six months of the one$-$year insurance policy purchased on July $1$ has expired.Four months of the one$-$year rental agreement purchased on September $1$ has expired.Of the $$1,800$ of office supplies purchased on July $4,$ $$300$ remains.Interest expense on the $$30,000$ loan obtained from the city council on August $1$ should be recorded.Of the $$2,800$ of racing supplies purchased on December $12,$ $$200$ remains.Suzie calculates that the company owes $$14,000$ in income taxes.Post transactions from July $1$ through December $31$ and adjusting entries on December $31$ to T$-$accounts.