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 34,000 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. Jul. 1 Sell $17,000 of common stock to Suzie. Jul. 1 Sell $17,000 of common stock to Tony. Jul. 1 Purchase a one-year insurance policy for $3,960 ($330 per month) to cover injuries to participants during outdoor clinics. Jul. 2 Pay legal fees of $1,900 associated with incorporation. Jul. 4 Purchase office supplies of $1,200 on account. Jul. 7 Pay $350 to a local newspaper for advertising to appear immediately for an upcoming mountain biking clinic to be held on July 15. Attendees will be charged $30 the day of the clinic. Jul. 8 Purchase 10 mountain bikes, paying $10,900 cash. Jul. 15 On the day of the clinic, Great Adventures receives cash of $1,800 from 60 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 company receives $2,150. Jul. 24 Pay $910 to a local radio station for advertising to appear immediately. A kayaking clinic will be held on August 10, and attendees can pay $110 in advance or $160 on the day of the clinic. Jul. 30 Great Adventures receives cash of $6,600 in advance from 50 kayakers for the upcoming kayak clinic. Requirement General Journal General Ledger Trial Balance Record each of the transactions listed above in the 'General Journal' tab (these are shown as items 1 - 11). Review the 'General Ledger' and the 'Trial Balance' tabs to see the effect of the transactions on the account balances. Requirement General Journal General Ledger Trial Balance Prepare the journal entries for transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Sell $17,000 of common stock to Suzie. Note: Enter debits before credits. Account Title Debit Credit Date July 01 Record entry Clear entry View general journal Requirement General Journal General Ledger Trial Balance Each journal entry is posted automatically to the general ledger. General Ledger Account Data is not available until journal entries have been entered. Requirement General Journal General Ledger Trial Balance The ending balance values from the General Ledger tab flows through to the Trial Balance below. GREAT ADVENTURES, INC. Trial Balance July 30, 2021 Account Title Debit Credit Total $ 0 $ 0 Requirement General Journal General Ledger Trial Balance Prepare the journal entries for transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet Sell $17,000 of common stock to Suzie. Note: Enter debits before credits. Account Title Debit Credit Date July 01 Record entry Clear entry View general journal Requirement General Journal General Ledger Trial Balance Each journal entry is posted automatically to the general ledger. General Ledger Account Data is not available until journal entries have been entered. Requirement General Journal General Ledger Trial Balance The ending balance values from the General Ledger tab flows through to the Trial Balance below. GREAT ADVENTURES, INC. Trial Balance July 30, 2021 Account Title Debit Credit Total $ 0 $ 0
