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 38,000 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 1 Bell $19,000 of common stock to Suale. Juli 1 Sell $19.000 of common stock to Tony. Jul. 1 Purchase a one-year insurance policy for $3,840 ($320 per month) to cover injuries to participants during outdoor clinics. Jal. 2 Pay legal tees of $1,400 associated with incorporation Jul. 4 Purchase of ice supplies of $1,500 on account. Jul. 7 Tay for advertising at $300 to a local newspaper for an upcoming mountain biking clinic to be held on July 15. Attendees will be charged 570 on the day of the clinic. Jul # Purchaue 10 mountain bikes, paying $14,400 cash. Jul 15 on the day of the clinic, Great Adventures receives canh of $4,900 ron 70 bikers. Tony conducta the mountain biking elinie. Jul. 22 Because of the success of the first mountain biking cline, Tony holds another mountain biking cline and the company receives $5,200. Jul. 24 Pay 5840 to a local radio station for advertising to appear immediately. A kayaking clinic will be held on August 10. and attendees can pay $150 in advance or $200 on the day of the clinic. Jol. 30 Great Adventures received cash of $9,000 in advance from 60 kayakers for the upcoming kayak elince Aug 1 Great Adventures obtains a $34,000 low 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 annual interest in due each year on July 31. Aug 4 The conpany purchases 14 kayaks, paying $17.600 cash, Aug. 10 twenty adattional kayakere pay 4,000 10200 each), in addition to the $0,000 that was paid in advance on July 30, on the day of the clinic. Tony conducts the first kayak elinie. Aug 17 Tony conducts second kayak clinic, and the company receives $11,500 cash Aug 24 ottice supplies of 51,500 purchased on July 4 are paid in full . 1 to provide better storage of mountain bikes and kayaks when not in use, the company renta storage shed for one vear. baina $2.520 5210 per month in advance,
