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 aci venture 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 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 35,000 shares of common stock for Sleach 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 $17,500 of common stock to Suzie. Jul. 1 Sell $17, see of common stock to Tony. Jul. 1 Purchase a one-year insurance policy for $4,888 ($340 per month) to cover injuries to participants during outdoor clinics. Jul. 2 Pay legal fees of $1,600 associated with incorporation. Jul 4 Purchase office supplies of $1,100 on account. Jul. 7 Pay for advertising of $310 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 $14,588 cash. Jul. 15 On the day of the clinic, Great Adventures receives cash of $2,888 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 company receives $3,300. Jul. 24 Pay $790 to a local radio station for advertising to appear immediately. A kayaking clinic will be held on August 10, and attendees can pay $150 an advance or $2ee on the day of the clinic. Jul. 38 Great Adventures receives cash of $6,88e in advance from 40 kayakers for the upcoming kayak clinic. Aug 1 Great Adventures obtains a $13,000 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 64 annual interest is due each year on July 31. Aug The company purchases 14 kayaks, paying $26.608 cash. Aug. 10 Twenty additional kayakers pay $4,000 ($200 each), in addition to the $6,888 that was paid in advance on July 30, on the day of the clinic. Tony conducts the first kayak clinic. Aug. 1 Tony conducts a second kayak clinic, and the company receives $12,302 cash. Aug, 24 office supplies of $1,180 purchased on July 4 are paid in full. Sepa 1 To provide better storage of mountain bikes and kayaks when not in use the company rents a storage shed for one year paying 34, 680 (5390 per month in advance, Sep. 21 Tony conducts a rock climbing dinic. The company receives $13.680 Cash Oct. 17 con conducts an orienteering clinic. Participants practice how to understand topographical map, read an itimeterse a compass and orient through heavily wooded areas. The company receives $18.00 TECKTY Work ITOUE IS SHOWS Wat is cash. Oct. 17 Tony conducts an orienteering clinic. Participants practice how to understand a topographical map, read an altimeter, use a compass, and orient through heavily wooded areas. The company receives $18,068 cash. Dec. 1 Tony decides to hold the company's first adventure race on December 15. Four person teams will race from 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 team is $620. Dec. 5 To help organize and promote the race, Tony hires his college roomate, Victor. Victor will be paid $50 in salary for each team that competes in the race. His salary will be paid after the race. Dec. 8 The company pays $1,980 to purchase a permit from a state park where the race will be held. The amount is recorded as a miscellaneous expense. Dec. 12 The company purchases racing supplies for $3,000 on account due in 30 days. Supplies include trophies for the 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 receives $24,800 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 54,588 ($2,250 to Tony and $2,250 to Suzie). Dec. 31 Using his personal money, Tony purchases a diamond ring for $4,900. 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 3L ZOZI. a. Depreciation of the mountain bikes purchased on July 8 and kayaks purchased on August 4 totals $7,300, . Six months of the one year Insurance policy purchased on July 1 has expired. Four months of the one year rental agreement purchased on September 1has expired. d Of the $1,100 of office supplies purchased on July 1, $350 remains enterest expense on the $43.000 loan obtained from the city counc on August I should be recorded. I of the $3.000 of racing supplies purchased on December 12. $290 remains - Suzie calculates that the company owes $14.300 in Income taxes. B. Prepare a post-closing trial balance as of December 31, 2021 & Prepare a post-cosing trial balance as of December 31, 2021 Answer la not complete CERCAYADVENT Ine. Poubeloving Tri Balones December 31, 2021 Accounts Debit Credit Cash 103,840 Prepaid Insurance 2,0404 Prepaid Rent 3.120 Supplies (Office) 350 Supplies (Racing) 200 Equipment (Bikes) 14,500 Equipment Kayaks) 26,600 Accumulated Depreciation 7.300 Accounts Payable 3,000 Income Tax Payable 14.300 Interest Payable 1,0754 Notes Payable 43.000 Common Stock 35,000 Retained Eamnings Dividends 4.500x] Service Revenue (Clinic) 60.000 Service Revenue (Racing) 24,800X Advertising Expense 1.100X Depreciation Expense 7.300X Income Tax Expense 14.300X Insurance Expense 2.040 Interest Expense 1,075) Legal Fees Expense 1600x Miscellaneous Expense 1,900 Rent Expense 1,560x) Salnes Expense 2.000X Supplies Expense (Office) 750% Supplies Expense (Racing) 2.710 Totals IS191.575 S 188.475