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, 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, 2021, Tony and Suzie organize their new company as a corporation, Great Adventures Inc. The articles of incorporation state that the corporation will sell 33,000 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 $16,500 of common stock to Suzie Jul. Sell $16,500 of common stock to Tony Jul 1 Purchase a one-year insurance policy for $4,080 ($340 per month) to cover injuries to participants during outdoor elinics. Jul. 2 Pay legal fees of $1,200 associated with incorporation Jul. Purchase office supplies of $1,100 on account Jul. 7Pay for advertising of $360 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 $17,300 cash Jul. 15 On the day of the clinic, Great Adventures receives cash of $2,800 from 70 bikers. Tony conducts the mountain biking clinic Jul. 22 Because of the success of the first mountain biking clinic, Tony holds another mountain biking clinic and the Jul. 24 Pay $850 to a local radio station for advertising to appear immediately. A kayaking elinie will be held on August 10, and attendees can pay $100 in advance or $150 on the day of the clinic Jul. 30 Great Adventures receives cash of $7,000 in advance from 70 kayakers for the upcoming kayak clinic Aug. 1 Great Adventures obtains a $50,000 lou-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. 4 The company purchases 14 kayaks, paying $16,900 cash Aug. 10 Twenty additional kayakers pay $3,000 ($150 each), in addition to the $7,000 that was paid in advance on July 0, on the day of the clinic. Tony conducts the first kayak clinic Aug. 17 Tony conducts a second kayak clinic, and the company receives $127,500 cash Aug. 24 office supplies of $1,100 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 for one year, paying $4,680 ($390 per month) in advance Sep. 21 Tony conducts a rock-climbing clinic. The company receives $14,900 cash Oct. 17 Tony conducts an orienteering clinic. Participants practice how to understand a topographical map, read arn altimeter, use a compass, and orient throuah heavilv vooded areas. The comoanv receives $18.200 cash Dec 1 Tony decides to hold the company's first adventure race on Decenber 15 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 tean is $600 Dec 5 To help organize and pronote the race, Tony hires his college roommate, victor victor will be paid $50 in Dec. 8 The company pays $2,000 to purchase a permit from a state park where the race will be held. The amount is Dec. 12 The company purchases racing supplies for $2,200 on account due in 30 days. Supplies inelude trophies for the salary for each team that competes in the race. His salary will be paid after the race recorded as a miscellaneous expense 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 receive $24,000 cash from a total of forty teams, and the race is held. Dec. 16 The company pays victor's salary of $2,000 Dec. 31 The company pays a dividend of $3,100 ($1,550 to Tony and $1,550 to Suzie) Dec. 31 Using his personal money, Tony purchases a diamond ring for $3,900. 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, 2021 a. Depreciation of the mountain bikes purchased on July 8 and kayaks purchased on August 4 totals $6,840 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 $1,100 of office supplies purchased on July 4, $380 remains. e. Interest expense on the $50,000 loan obtained from the city council on August 1 should be recorded. f. Of the $2,200 of racing supplies purchased on December 12, $280 remains g. Suzie calculates that the company owes $14,300 in income taxes. General edger Income Statement of Balance Sheet GeneralTrial Balance Statement Requirement Journal SE 1. Record each of the transactions listed above in the 'General Journal' tab (these are shown as items 1 27). Review the General Ledger' and the 'Trial Balance' tabs to see the effect of the transactions on the account balances. 2. Record the adjusting entries in the 'General Journal tab (these are shown as items 28-34). 3. Review the adjusted 'Trial Balance as of December 31, 2021. 4. Prepare an income statement for the period ended December 31, 2021, in the 'Income Statement' tab. 5. Prepare a statement of stockholder's equity for the period ended December 31, 2021, in the 'Statement of Stockholder's Equity' tab. 6. Prepare a classified balance sheet as of December 31, 2021 in the 'Balance Sheet' tab. 7. Record the closing entries in the 'General Journal' tab (these are shown as items 35-37). General Journal Genera Trial Balance Statement Ledger Statement of SE Income Balance Sheet Journal Prepare the journal entries for transactions. (If no entry is required for a transaction/event, select "No journal account field.) View transaction list Journal entry worksheet 37 Sell $16,500 of common stock to Suzie. Note: Enter debits before credits. Date General Journal Debit Credit Jul 01, 2021 Record entry Clear entry View general journal Tr General Trial Balance Statement Ledger General Statement of Income Balance Sheet Requirement Journal The ending balance values from the General Ledger tab flows through to the Trial Balance below. Unadjusted GREAT ADVENTURES, Inc. Trial Balance December 31, 2021 Account Title Debit Credit Total Choose the appropriate accounts to be reported on the income statement. Select the 'adjusted' from the dropdown, which will then populate the balances in those accounts from the trial balance. Unadjusted GREAT ADVENTURES, Inc. Income Statement December 31, 2021 Revenues: Total Revenues Expenses: Total Expense Reqirement GeneralGeneral Income Statement of E Balance Sheet Ledger rial BalanceIncome SE Using the dropdown buttons, select the item that accurately describes the values that either increase or decrease the balance indicated Unadjusted GREAT ADVENTURES, Inc. Statement of Stockholders' Equity For the year ended December 31, 2021 Retained Earnings Total Stockholders' Equity Common Stock