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 23,000 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 $1,500 ot common stock to Suzie. Jul. 1 Sell $11,500 ot common stock to Tony. Jul. 1 Purchase a one-year insurance policy for $4,080 (5340 per month) to cover injuries to participants Jul. 2 Day legal fees of $1,300 associated with incorporation. Jul. 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 $60 on the day of the clinic. Jul. 8 Purchase 10 mountain bikes, paying $19,800 cash. Jul. 15 on the day of the clinic, Great Adventures receives cash of $2,400 from 40 bikers. Tony conducts the mountain biking elinie. Jul. 22 Because of the success of the first mountain biking clinic. Tony holds another mountain biking clinic and the company receives $2.900. Jul. 24 Pay $830 to a local radio station for advertising to appear immediately. A kayaking clinic will be held on August 10, and attendees can pay $130 in advance or $180 on the day of the clinic. Jul. 30 Great Adventures receives cash of 59.100 in advance from 70 kayakers for the upcoming kayak clinic. Aug. 1 Great Adventures obtains $49,000 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 6 annual interest is due each year on July 31. Aug. 4 The company purchases 14 kayaks, paying $16,800 cash. Aug. 10 Tenty additional kayakers pay $3,600 ($180 each), in addition to the 59,100 that was paid in advance on July 30, on the day of the clinie. Tony conducts the first kayak clinic. Aug. 17 Tony conducts a second kayak clinic, and the company receives $12,100 cash. Aug. 24 office supplies of $1,400 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 53.000 (5250 per month) in advance. Sep. 21 Tony conducta a rock-climbing clinic. The company receives $14.300 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 area. The company receives $18,000 cash. Dec. 1 Tony decides to hold the company's first adventure race on December 15. Tour-person teams will race from checkpoint to checkpoint using a combination of fountain 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 $500. Dec. 5 To help organize and promote the race, Tony hires his college roommate, Victor. Victor will be paid $40 in salary for each team that competes in the race. I salary will be paid after the race. Dec. The company pays $1,400 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 $2,000 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 $20.000 cash from a total of forty teams, and the race is held. Dec. 16 The company pays Victor's malary of $1,600. Dec. 31 The company pays a dividend of $4,600 (52,300 to Tony and $2,300 to Surte). Dec. 31 using his personal money, Tony purchases a diamond ring for $4,000. Tony surprises soxie 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 $8,900, 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 $1,400 of office supplies purchased on July 4, $280 remains e. Interest expense on the $49,000 loan obtained from the city council on August 1 should be recorded. 1. Of the $2,000 of racing supplies purchased on December 12, $130 remains. g. Suzie calculates that the company owes $14,500 in income taxes. 6. Record closing entries as of December 31, 2021. (if no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction ist Journal entry worksheet Record the closing of revenue accounts. Note: Enter debits before credits Date General Journal Debit Credit Dec 31, 2021 Record entry Clear entry View general Journal Journal entry worksheet Record the closing of expense accounts. Note: Enter debits before credits. General Journal Date Dec 31, 2021 Debit Credit View transaction list Journal entry worksheet