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 hiking or kayaking. Upon developing a customer base, tbey hold their first adventare races. These raees will involve four-person teams that race from one checkpoint to the next using a combination of kayaking, mountain hiking, orienteering, and trail running. In the long run, bey plan to sell outdoor gear and develop a ropes course for outdoor enthusiasts. Post each transaction to T accounts (Ledgerl On July 1, 2012, Tony and Suzie organize their new company as a corporation, Great Adventures Inc. The The following information relates to year-end adjusting entries as of December 31, 2012 articles of incorporation state that the corporation will sell 34,000 shares of common stock for S1 each. Each share of stock represents a unit of ownership. Tony and Suzie will act as co-presidents of the company. The Depreciation of the mountain bikes purcbased on July 8 and kayaks purchased on August 4 u Suzie parchases $17,000 of Great Adventures' common stock using cash she saved during college. 1 Tony purchases $17,000 of Great Adventures' common stock by borrowing from a local bank using his l Suzie purchases a one year insurance policy for $4,680 (S390 per month) to cover injuries to participants The company pays legal fees of $1,000 associated with incorporation. Of the S1,o000 of otfice supplies purchased on July 4, S280 remains. Interest expense on the S38,000 loan obtained from the city council on August 1 should be Of the S2,500 of racing supplies purchased on December 12, S230 remains Suzie calculates that the company owes S13.300 in income taxes 4 Suzie parchases ollice supplies ofS1,000 on account Suzie pays advertising of $260 to a local newspaper for an upcoming mountain hiking clinic to be held on July 15. Attendees will be charged S40 the day ofthe elinic. Tony prchases 10 mountain hikes, paying $10,80O cash. Post adjusting entries to the T accounts 15 On the day of the clinic, Great Adventures receives cash of $2,000 from 50 bikers. Tony conducts the 22 Because of the success of the first mountain biking clinic, Tony holds another mountain biking clinic and 24 Suzie pays advertising of S770 to a local radio station for a kayaking clinic to be held on August 10 Prepare the financial statements for the period Statement of Stockholder Equity Attendees can pay S100 in advance or S150 on the day of the eline. 0 Great Adventures receives cash of S6,000 in advance from 60 kayakers for the upcoming kayak clinic Aup. Suzie applies for and oblains a S38,000 low-interest loan for the company from the city coancil which has recently passed an initiative encouraging business development related to outdoor activities. The loan is due in three years, and 65% annual interest is due each year on July 31. The company purchases 14 kayaks, costing S28,500. Twenty additional kayakers pay S3,400 (S170 each), in addition to the S6,000 that was paid in advance on July 30, an the day of the clinic. Tony conducts the first kayak clinic. WORK MUST BE DONE USING PENCIL AND PAPER ONLY. NOINK, NO PRINTOUTS, NO PHOTOCOPIES Aug. Aug. 4 10 Aug. 17 Tony conducts a second kayak clinic and receives $12,100 cash. Aug, 24 Office supplics of $1,000 purchased on July 4 are paid ifull Sep. 1 To provide better storage of mountain bikes and kayaks when not in use, the company rents a storage shed, purehasing a one-year rental policy for $4,800 (3400 per month). Sep. 21 Tony conducts a rack climbing clinic. The company receives $14,600 cash. O 17 Tony conducts an orienteering clinie. Participants practice how to understand a topographical map, read an altimeter, use a compass, and orient through heavily wooded areas. Clinic fees total S18,600. Tony decides to hold tbe company's lirst adventure tace on December15. Four-person teans will race from cheekpoint to checkpoint using a combination of mountain biking, kayaking, orienteering trail running, and rock-climbing skills. Tbe first team in each category to complete all checkpoints in order wins. The entry fee for each team is $640 To help organize and promote the race, Tony hires his college roommate, Victor. Victor will be paid S40 in salary for each team that competes in the race, His salary will be paid after the race, The company pays S1,100 to purchase a permit from a state park where the race will be held. The Dec. Dec. Dec. Dec. 5 8 12 The company purchases racing supplies for $2,500 on accoumt due in 30 days. Supplies include trophies tor the top-finishing teams in cach eategory, promotional shirts, snack foods and drinks for Dec. 15 Forty teams pay a total of 525,600 to race. The race is helkd. Dec. 16 The company pays Victor's salary f $1,600 Dec. 31 The company pays a dividend of $4,100 (S2,050 to Tony and S2,050 to Suzie). Required 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 hiking or kayaking. Upon developing a customer base, tbey hold their first adventare races. These raees will involve four-person teams that race from one checkpoint to the next using a combination of kayaking, mountain hiking, orienteering, and trail running. In the long run, bey plan to sell outdoor gear and develop a ropes course for outdoor enthusiasts. Post each transaction to T accounts (Ledgerl On July 1, 2012, Tony and Suzie organize their new company as a corporation, Great Adventures Inc. The The following information relates to year-end adjusting entries as of December 31, 2012 articles of incorporation state that the corporation will sell 34,000 shares of common stock for S1 each. Each share of stock represents a unit of ownership. Tony and Suzie will act as co-presidents of the company. The Depreciation of the mountain bikes purcbased on July 8 and kayaks purchased on August 4 u Suzie parchases $17,000 of Great Adventures' common stock using cash she saved during college. 1 Tony purchases $17,000 of Great Adventures' common stock by borrowing from a local bank using his l Suzie purchases a one year insurance policy for $4,680 (S390 per month) to cover injuries to participants The company pays legal fees of $1,000 associated with incorporation. Of the S1,o000 of otfice supplies purchased on July 4, S280 remains. Interest expense on the S38,000 loan obtained from the city council on August 1 should be Of the S2,500 of racing supplies purchased on December 12, S230 remains Suzie calculates that the company owes S13.300 in income taxes 4 Suzie parchases ollice supplies ofS1,000 on account Suzie pays advertising of $260 to a local newspaper for an upcoming mountain hiking clinic to be held on July 15. Attendees will be charged S40 the day ofthe elinic. Tony prchases 10 mountain hikes, paying $10,80O cash. Post adjusting entries to the T accounts 15 On the day of the clinic, Great Adventures receives cash of $2,000 from 50 bikers. Tony conducts the 22 Because of the success of the first mountain biking clinic, Tony holds another mountain biking clinic and 24 Suzie pays advertising of S770 to a local radio station for a kayaking clinic to be held on August 10 Prepare the financial statements for the period Statement of Stockholder Equity Attendees can pay S100 in advance or S150 on the day of the eline. 0 Great Adventures receives cash of S6,000 in advance from 60 kayakers for the upcoming kayak clinic Aup. Suzie applies for and oblains a S38,000 low-interest loan for the company from the city coancil which has recently passed an initiative encouraging business development related to outdoor activities. The loan is due in three years, and 65% annual interest is due each year on July 31. The company purchases 14 kayaks, costing S28,500. Twenty additional kayakers pay S3,400 (S170 each), in addition to the S6,000 that was paid in advance on July 30, an the day of the clinic. Tony conducts the first kayak clinic. WORK MUST BE DONE USING PENCIL AND PAPER ONLY. NOINK, NO PRINTOUTS, NO PHOTOCOPIES Aug. Aug. 4 10 Aug. 17 Tony conducts a second kayak clinic and receives $12,100 cash. Aug, 24 Office supplics of $1,000 purchased on July 4 are paid ifull Sep. 1 To provide better storage of mountain bikes and kayaks when not in use, the company rents a storage shed, purehasing a one-year rental policy for $4,800 (3400 per month). Sep. 21 Tony conducts a rack climbing clinic. The company receives $14,600 cash. O 17 Tony conducts an orienteering clinie. Participants practice how to understand a topographical map, read an altimeter, use a compass, and orient through heavily wooded areas. Clinic fees total S18,600. Tony decides to hold tbe company's lirst adventure tace on December15. Four-person teans will race from cheekpoint to checkpoint using a combination of mountain biking, kayaking, orienteering trail running, and rock-climbing skills. Tbe first team in each category to complete all checkpoints in order wins. The entry fee for each team is $640 To help organize and promote the race, Tony hires his college roommate, Victor. Victor will be paid S40 in salary for each team that competes in the race, His salary will be paid after the race, The company pays S1,100 to purchase a permit from a state park where the race will be held. The Dec. Dec. Dec. Dec. 5 8 12 The company purchases racing supplies for $2,500 on accoumt due in 30 days. Supplies include trophies tor the top-finishing teams in cach eategory, promotional shirts, snack foods and drinks for Dec. 15 Forty teams pay a total of 525,600 to race. The race is helkd. Dec. 16 The company pays Victor's salary f $1,600 Dec. 31 The company pays a dividend of $4,100 (S2,050 to Tony and S2,050 to Suzie). Required