Tony and Suzie graduate from college in May 2021 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. orlenteering, and trall running. In the long run, they plan to sell outdoor gear and develop a ropes course for outdoor enthusiasts. On July 1, 2021, Tony and Suzie organize their new company as a corporation, Great Adventures inc. The articles of incorporation state that the corporation will sell 37,000 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. Ju1. I sell \$18, 500 of common stoek to Suzie. Ju1. I Sell \$18,500 of eommon stoek to Tony. Ju1. I Purchase a one-year insurance poliey for $,640 (\$470 per month) to covor injuries to partioipants during outdoor elinies. Ju1. 2 Pay legal fees of $1,600 assoclated with incorporation. Jul. I Purchase office suppiles of $1,600 on account. Ju1. 7 Pay for advertining of $330 to a local newspaper for an upeoning mountain biking olinic to be held on July 15. Attendees w111 be ebarged $70 on the day of the clinie. Ju1. 8 Purchase 10 mountain bikes, paying $18,600 eash. Ju1. 15 on the day of the elinic, Great Adventuren receives cash of $3,500 from 50 bikers. Tony conducts the nountain biking olinic. Ju1. 22 Because of the nuccess of the firat mountain biking elinie, fony holds another mountain biking clinic and the Jul. 20 Pay $910 to a loes $3,850. Jul. 24 Pay $910 to a local radio station for advertising to appear imnediately. A kayaking olinio will be held on Auguat 10 , and attendeen can pay $100 in advance or $150 on the day of the elialo. Ju1. 30 Creat Adventures receiven cash of $8,000 in advance from 80 kayakers for the upconing kayak elinic. Aug. I Great Adventures obtaine a $44,000 low-interest loen for the coepany from the oity council, which han recently pansed an initiative encouraging bueinese devolopeent related to outdoor activities. The loan is due in three yearn, and 6t annual intereat is doe eaeh year on July 31 . Aug. 4 The company purchares 14 kayaks, paying $18,200canh. 30, on the day of the clinie. Tony conduetn the firat kayak olinic. Aug. 17 Tony conducts a second kayak elinic, and the company receives $12,200canh. Aus. 24 office nupplies of $1,600 parchased on July 4 are paid in full. Sep. I To provide better storage of mountain bikes and kayaks when not in use, the conpany rents a storage uhed for one year, paying $4,800 ( $400 per month) in advance. Sep. 21 Tony conducts a rock-e1imbing elinic. The eorpany recelven $15,100 cash. oct. 17 Tony conducts an orienteering clinie. Participants practice bow to underatand a topographical map, read an altimeter, une a compnss, and orient throngh heavily wooded arean. The company receives $18,700 cash. Dee. 1 Tony deciden to hold the company'a firet adventure race on Decenber 15. Four-poraon teams will race from rock-climbing nkilln, The first teambination of mountain biking, kayaking, orienteering, trail running, and for each tean is $500. Dee. 5 To help organize and pronote the race, Tony hires his college roomate, Victor. Vietor will be paid \$7o in salary for each tean that competes in the race. His salary will be paid after the race. Dec. 8 The corpany paya $1,200 to purchase a pernit from a state park where the race will be held. The amount is recorded as a tiscellanpous expense. Dee. 12 The company purchanes racing supplies for $2,500 on account due in 30 days. Supp1les inelude trophies for the top-tiniehing teame in each category, promotional shirts, snack foods and drinks for partieipants, and field markers to prepare the racecourse. Dec. 15 The company receives $20,000 cash from a total of forty teans, and the race is held. Dec. 16 The company pays Vietor' $ balary of $2,800. Dec. 31 The company pays a dividend of $3,100($1,550 to 7ony and $1,550 to 5uzie). Dec. 31 Using his personal money, Tony parchases a diamond ring for $4,400. Tony surprises suzie by proposing that they get married. Suzie accepts and they get marriedt The following information relates to year-end adjusting entries as of December 31,2021. a. Depreciation of the mountain bikes purchased on July 8 and kayaks purchased on August 4 totais $7,360. b. Six months' of the one-year insurance policy purchased on July 1 has expired. c. Four months of the one-year rental agreement purchased on September 1 has expired. d. Of the $1,600 of office supplies purchased on July 4,$330 remains. e. Interest expense on the $44,000 loan obtained from the city council on August 1 should be recorded. f. Of the $2,500 of racing supplies purchased on December 12,$260 remains. 9. Suzie calculates that the company owes $13.100 in income taxes. The ending balance values from the General Ledger tab fiows through to the Trial Balance below. Tony and Suzie graduate from college in May 2021 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. orlenteering, and trall running. In the long run, they plan to sell outdoor gear and develop a ropes course for outdoor enthusiasts. On July 1, 2021, Tony and Suzie organize their new company as a corporation, Great Adventures inc. The articles of incorporation state that the corporation will sell 37,000 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. Ju1. I sell \$18, 500 of common stoek to Suzie. Ju1. I Sell \$18,500 of eommon stoek to Tony. Ju1. I Purchase a one-year insurance poliey for $,640 (\$470 per month) to covor injuries to partioipants during outdoor elinies. Ju1. 2 Pay legal fees of $1,600 assoclated with incorporation. Jul. I Purchase office suppiles of $1,600 on account. Ju1. 7 Pay for advertining of $330 to a local newspaper for an upeoning mountain biking olinic to be held on July 15. Attendees w111 be ebarged $70 on the day of the clinie. Ju1. 8 Purchase 10 mountain bikes, paying $18,600 eash. Ju1. 15 on the day of the elinic, Great Adventuren receives cash of $3,500 from 50 bikers. Tony conducts the nountain biking olinic. Ju1. 22 Because of the nuccess of the firat mountain biking elinie, fony holds another mountain biking clinic and the Jul. 20 Pay $910 to a loes $3,850. Jul. 24 Pay $910 to a local radio station for advertising to appear imnediately. A kayaking olinio will be held on Auguat 10 , and attendeen can pay $100 in advance or $150 on the day of the elialo. Ju1. 30 Creat Adventures receiven cash of $8,000 in advance from 80 kayakers for the upconing kayak elinic. Aug. I Great Adventures obtaine a $44,000 low-interest loen for the coepany from the oity council, which han recently pansed an initiative encouraging bueinese devolopeent related to outdoor activities. The loan is due in three yearn, and 6t annual intereat is doe eaeh year on July 31 . Aug. 4 The company purchares 14 kayaks, paying $18,200canh. 30, on the day of the clinie. Tony conduetn the firat kayak olinic. Aug. 17 Tony conducts a second kayak elinic, and the company receives $12,200canh. Aus. 24 office nupplies of $1,600 parchased on July 4 are paid in full. Sep. I To provide better storage of mountain bikes and kayaks when not in use, the conpany rents a storage uhed for one year, paying $4,800 ( $400 per month) in advance. Sep. 21 Tony conducts a rock-e1imbing elinic. The eorpany recelven $15,100 cash. oct. 17 Tony conducts an orienteering clinie. Participants practice bow to underatand a topographical map, read an altimeter, une a compnss, and orient throngh heavily wooded arean. The company receives $18,700 cash. Dee. 1 Tony deciden to hold the company'a firet adventure race on Decenber 15. Four-poraon teams will race from rock-climbing nkilln, The first teambination of mountain biking, kayaking, orienteering, trail running, and for each tean is $500. Dee. 5 To help organize and pronote the race, Tony hires his college roomate, Victor. Vietor will be paid \$7o in salary for each tean that competes in the race. His salary will be paid after the race. Dec. 8 The corpany paya $1,200 to purchase a pernit from a state park where the race will be held. The amount is recorded as a tiscellanpous expense. Dee. 12 The company purchanes racing supplies for $2,500 on account due in 30 days. Supp1les inelude trophies for the top-tiniehing teame in each category, promotional shirts, snack foods and drinks for partieipants, and field markers to prepare the racecourse. Dec. 15 The company receives $20,000 cash from a total of forty teans, and the race is held. Dec. 16 The company pays Vietor' $ balary of $2,800. Dec. 31 The company pays a dividend of $3,100($1,550 to 7ony and $1,550 to 5uzie). Dec. 31 Using his personal money, Tony parchases a diamond ring for $4,400. Tony surprises suzie by proposing that they get married. Suzie accepts and they get marriedt The following information relates to year-end adjusting entries as of December 31,2021. a. Depreciation of the mountain bikes purchased on July 8 and kayaks purchased on August 4 totais $7,360. b. Six months' of the one-year insurance policy purchased on July 1 has expired. c. Four months of the one-year rental agreement purchased on September 1 has expired. d. Of the $1,600 of office supplies purchased on July 4,$330 remains. e. Interest expense on the $44,000 loan obtained from the city council on August 1 should be recorded. f. Of the $2,500 of racing supplies purchased on December 12,$260 remains. 9. Suzie calculates that the company owes $13.100 in income taxes. The ending balance values from the General Ledger tab fiows through to the Trial Balance below