Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
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 ng a cu base, theylI hold their first re races. These races will invoive four- person teams that race from one checkpoint to the next using a combination of 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 inoorporation 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 for Great Adventures Jul. 1 Sell $19,500 of common stock to Suzie. Jul. 1 Sell $19,500 of common stock to Tony Jul. 1 se a one-year insurance policy for $4,440 ($370 per month) to cover injuries to nts during outdoor clinics. Jul. 2 Pay legal fees of $1,800 associated with incorporation. Jul. 4 Purchase office supplies of $1,600 on account Jul. 7 Pay for advertising of $240 to a local newspaper held on July 15. Attendees will be charged $70 the day of the clinic. Jul. 8 for an upcoming mountain biking to be 10 mountain bikes, paying $10,500 cash 15 On the day of the clinic, Great Adventures receives cash of $3,500 from 50 bikers. Tony conducts the mountain biking clinic. Jul. 22 biking clinic and the company receives $4,050 Jul. 24 Pay for advertising of $820 to a local radio station for a kayaking clinic to be held on August of the success of the first mountain biking clinic. Tony holds another mountain ees can pay $110 in advance or $160 on the day of the clinic ul. 30 Great Adventures receives cash of $5.500 in advance from 50 kayakers for the upconing kayak clinic in July ccoun each transaetion to he approprate Traccounts and calceulate the ending balance of

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Mastering ISO Auditing A Comprehensive Guide To Learn ISO Auditing

Authors: Cybellium Ltd, Kris Hermans

1st Edition

B0CHL9PQFC, 979-8861285858

More Books

Students also viewed these Accounting questions

Question

What are the four ways property can transfer at death?

Answered: 1 week ago