Tony and Suzie graduate from college in May 2018 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, 2018, Tony and Suzie organize their new company as a corporation, Great Adventures Inc. The articles of incorporation state that the corporation will sell 35,000 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 $17,500 of common stock to Suzie Jul. 1 Sell $17,500 of common stock to Tony. Jul 1 Purchase a one-year insurance policy for $3,840 ($320 per month) to cover injuries to participants during outdoor clinics Jul. Jul. Jul. 2 Pay legal fees of $1,900 associated with incorporation. 4 Purchase office supplies of $1,600 on account. 7 Pay for advertising of $340 to a local newspaper for an upcoming mountain biking clinic to be held on July 15. Attendees will be charged $40 on the day of the clinic. Jul. 8 Purchase 10 mountain bikes, paying $13,400 cash. Jul. 15 On the day of the clinic, Great Adventures receives cash of $2,000 from 50 Jul. 22 Because of the success of the first mountain biking clinic, Tony holds another Jul. 24 Pay for advertising of $890 to a local radio station for a kayaking clinic to be bikers. Tony conducts the mountain biking clinic. mountain biking clinic and the company receives $2,600 held on August 10. Attendees can pay $140 in advance or $190 on the day of the clinic. Jul. 30 Great Adventures receives cash of $9,800 in advance from 70 kayakers for the upcoming kayak clinic. Great Adventures obtains a $49,000 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. 1 Aug. 4 The company purchases 14 kayaks, paying $22,400 cash Aug. 10 Twenty additional kayakers pay $3,800 ($190 each), in addition to the $9,800 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 $12,500 cash. Aug. 24 Office supplies of $1,600 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, purchasing a one-year rental policy for $3,240 ($270 per month) Sep. 21 Tony conducts a rock-climbing clinic. The company receives $13,800 cash Oct. 17 Tony conducts an orienteering clinic. Participants practice how to understand a Aug. 24 Office supplies of $1,600 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, purchasing a one-year rental policy for $3,240 ($270 per month) Sep. 21 Tony conducts a rock-climbing clinic. The company receives $13,800 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 $19,900 cash. Tony decides 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 $610 Dec. 1 Dec. 5 To help organize and promote the race, Tony hires his college roommate, Victor Victor will be paid $40 in salary for each team that competes in the race. His salary will be paid after the race Dec. 8 The company pays $1,700 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 $2,600 on account due in 30 day:s 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 $24,400 cash from a total of forty teams, and the race is held Dec. 16 The company pays Victor's salary of $1,600 Dec. 31 The company pays a dividend of $3,800 ($1,900 to Tony and $1,900 to Suzie) Dec. 31 Using his personal money, Tony purchases a diamond ring for $4,700. 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, 2018 a. Depreciation of the mountain bikes purchased on July 8 and kayaks purchased on August 4 totals $7160 b. Six months' worth of insurance has expired C. Four months' worth of rent has expired d. Of the $1,600 of office supplies purchased on July 4, $350 remains e. Interest expense on the $49,000 loan obtained from the city council on August 1 should be recorded f. Of the $2,600 of racing supplies purchased on December 12, $280 remains g. Suzie calculates that the company owes $14,900 in income taxes 28 Prepare the adjusting entry for depreciation. 29 Prepare the adjusting entry for insurance. 30 Prepare the adjusting entry for rent. 31 Prepare the adjusting entry for office supplies. 32 Prepare the adjusting entry for interest. 33 Prepare the adjusting entry for racing supplies 34 Prepare the adjusting entry for income taxes. 35 Prepoare the closina entrv for revenue. or expenses 37 Prepare the closing entry for cash dividends