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 fout-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 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 transactions occur from July 1 through December 31 3ul. 1 Sel1 510,000 of comon stock to Surie. Jul. 1 Sel1 $10,000 of comon stock. Tony. ju1. I Purchase o one-year insurance policy for $4, Bee (\$400 per nonth) to cover injuries to participants during outdoor clinics. Ju1. 2 Pay legal fees of $1,500 associated with incorporation. Jul. A Purchase office supplies of $1, thoe on account. 3ul. 7 Pay for advertising of $100 to a local newspaper for an upcoming mountain biking clinic to be held on july 15. Attendees aill be charged $50 on the day of the clinic. 2u1. B Purchase 18 mountaln bikes, paying $12, 00e cash. 3ul. 15 On the day of the ciinic, Great Adventures receives cosh of $2, 0ae from da bikers, Tony conducts the mountain biking c.linic, Jul. 22 because of the success of the first mountaln biking clinic, Tony holds another mountain blking clinic and the coepany Ju1. 24 Pay $700 to a local radio station for advertising to appear immediately. A kayaking clinic will be held on August. 10, and attendees can pay $100 in advance or $150 on the day of the clinic. Juh. 30 Great Adventures receives cash of $4,000 in advance from 40 kayakers for the upconing kayak clinic. Aug- I Great Adventures obtains a 530,000 low-Interest loan for the company from the city council, which has recently passed an inithative encouraging business developnent related to outdoar activities. The loan is due in three years, and 6% annual interest is doe each year on July 11. Aug. 4 The company purchases 14 kayaks, paying $26,000 cash. Aug. 4 The company purchases 14 kayaks, paying $28,600 cash. Aug. 10 Twenty addit ional kayakers pay $3,000($150 each), in addition to the $4,090 that was paid in advance on July 39 , on the day of the elinic. Tony conducts the first kayak clinic. Aug. 17. Tony conducts a second kayak clinic, and the company receives $16,590 cash. Aug. 24 office supplies of $1,80e purchased on July A are paid in full. Sep. 1 To provide better storage of nountain bikes and kayaks when not in use, the conpany rents a storage shed for one year, paying $2,400 (\$2ee per month) in advance. Sep. 21 Tony conducts a rock-climbing clinic. The company receives $13,20e cash. oct. 17 Tony conducts an orienteering clinic. Participants practice how to understand a topographical nap, read an altimeter, use a compass, and orient through heavily wooded areas. The conpany receives $17,900 cash. Dec. 1 Tony decides to hold the conpany's first adventure race on Decenber 15. Four-person tenas will race from checkpoint to checkpoint using a combination of mountain biking, kayaking, orienteering, trail running, and rock-clinbing skills. The first team in each category to coaplete all checkpoints in order wins. The entry fee for each team Is $500. Dec. 5 To help. organize and pronote the race, Tony hires his college roomate, Victor. Victor will be paid $50 in salary. for each. team that cometes in the race. His salary will be paid after the race. Dec, 8 The conpany pays $1,200 to purchase a permit from a state park where the race will be held. The anount is recorded as a miscellaneous expense. Dec. 12 The coepany purchases racing supplies for $2,800 on account due in 30 days. Supplies incluge trophies for the top-finishing. teas in each category, prosotional shirts, snack foods and drinks for participants, and fireld markers to prepare the racecourse. Dec. 15 The conpany receives 520,000 cash from a total of forty teans, and the race is held. Dec. 16 The coepany pays Vletor's salary of $2,000. Dec. 31 the company pays a dividend of $4,000(52,000 to Teny and $2,000 to 54z1e). Dec, 31 using his personal money, Tony purchases a dianond ring for $4, 500. Tony surprises surie by proposing that they get earried. Sunle accepts and they get narriedl 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 $8,000. 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 $1.800 of office subolies burchased on July 4.5300 remains. 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 $8,000. 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 $1,800 of office supplies purchased on July 4,$300 remains e. Interest expense on the $30,000 loan obtained from the city council on August 1 should be recorded. f. Of the $2.800 of racing supplies purchased on December 12,$200 remains. g. Suzie calculates that the company owes $14,000 in income taxes. 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)