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 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 business activities occur during July for Great Adventures July 1 1 1 Sell $10,000 of common stock to Suzie Sell $10,000 of common stock to Tony Purchase a one-year insurance policy for $4,800 ($400 per month) to cover injuries to participants during outdoor clinics 2 Pay legal fees of $1,500 associated with incorporation 4 Purchase office supplies of $1,800 on account. 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 the day of the clinic. 8 Purchase 10 mountain bikes, paying $12,000 cash 15 On the day of the clinic, Great Adventures receives cash of $2,000 from 40 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 $2,300 24 Pay for advertising of $700 to a local radio station fora kayaking clinic to be held on August 10. Attendees can pay $100 in advance or $150 on the day of the clinic. 30 Great Adventures receives cash of $4,000 in advance from 40 kayakers for the upcoming kayak clinic