Tony and Suzie graduate from college in May 2012 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, 2012, Tony and Suzie organize their new company as a corporation, Great Adventures Inc. The articles of incorporation state that the corporation will sell 39,000 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. Jul. 1 Suzie purchases $19,500 of Great Adventures' common stock using cash she saved during college. 1 Tony purchases $19,500 of Great Adventures' common stock by borrowing from a local bank using his personal vehicle as collateral. 1 Suzie purchases a one-year insurance policy for $6,000 ($500 per month) to cover injuries to participants during outdoor clinics. 2 The company pays legal fees of $1,000 associated with incorporation. 4 Suzie purchases office supplies of $1,300 on account. 7 Suzie pays advertising of $260 to a local newspaper for an upcoming mountain biking clinic to be held on July 15. Attendees will be charged $70 the day of the clinic. 8 Tony purchases 10 mountain bikes, paying $11,100 cash. 15 On the day of the clinic, Great Adventures receives cash of $4,200 from 60 bikers. Tony conducts the mountain biking clinic. 22 Because of the success of the first mountain biking clinic, Tony holds another mountain biking clinic and the company receives $4,600. 24 Suzie pays advertising of $740 to a local radio station for a kayaking clinic to be held on August 10. Attendees can pay $140 in advance or $190 on the day of the clinic. 30 Great Adventures receives cash of $5,600 in advance from 40 kayakers for the upcoming kayak clinic. Record each transaction in July. Date General Journal Debit Credit July 1 July 1 July 1 July 2 July 4 July 7 July 8 July 15 July 22 July 24 July 30 Post each transaction to T-accounts. Cash July 1 July 1 July 1 July 2 July 15 July 7 July 22 July 8 July 30 July 24 End. bal. Prepaid Insurance July 1 End. bal. Supplies July 4 End. bal. Equipment July 8 End. bal. Accounts Payable July 4 End. bal. Unearned Revenue July 30 End. bal. Common Stock July 1 July 1 End. bal. Service Revenue July 15 July 22 End. bal. Advertising Expense July 7 July 24 End. bal. Legal Fees Expense July 2 End. bal. Prepare a trial balance. (Omit the "$" sign in your response.) GREAT ADVENTURES, INC. Trial Balance July 31, 2012 Accounts Debit Credit Cash $ Prepaid Insurance Supplies Equipment Accounts Payable $ Unearned Revenue Common Stock Service Revenue Advertising Expense Legal Fees expense Totals $ $