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, ond trall funning. In the long run, they plan to sell outdoor gear and develop a ropes course for outdoof enthusiasts. On July 1, 2021, Tony and Suzic 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 Jut. 1 sell $16, bee of centon stock to suzie. Jul. 1 Seti 510,060 of connon stock to Teny. Jut. 1 Purchase a one-year insurance policy for s4,80e (suee per nonth) to cover injuries to partacipants during outdoer clinics. Jul, 2 Pay legal fees of $1,5 ee associated with incorporation. 3ut. 4 Purchase office suppties of 51,806 on account. Jul. 7 Pay for advertising of 5300 to a local newspaper for an upconing nountain biking clinic to be held of Juty 15 . Attendees witt be charged 550 on the day of the clinic. Jut. 8 Purchase 10 mountain bikes, paying $12, ese cash. Jul. 15 on the day of the clinic, Great Adventures receives cash of 52,0e9 fron 40 bikers. Teny conducts the nountain biking clinic. Jul. 22 Bechuse of the success of the first mountain biking clinic. Tony holds anether mountain biking clinic and the cotpany receives $2,300. Ju1. 24 Pay $700 to a Local radio station for advertising to appear imedsately. A wayaking clintc wit1 be held on August 10, and attendees can pay s1ee in advance or s15e on the day of the clinic: Jut. 30 Great Adventures peceives cash of 54,000 in advance fron Ae kayakers for the upconing kayak clinic. Aug. 1 Great Adventures obtains a 130,000 low-interest loan for the conpany frem the city council, which has recently psssed an instiative encouraging business development reloted to outdoer activaties. The lean is die in three years, and 6 t annual interest is due each yest on July 31. Aug, 4 The conpany purchases 14 kayaks, paying $25,000 cash. Aug. 10 Twenty addit ional kayakers pay $3, , e00 (s15e each), in sddition to the 84 , aed that was paid in advance on July 3 , an the day of the clinic, Tony conducts the first wayak clinic. Aug. 17 Toey conducts a second kayak clintc, and the conpany receives 116,502 cash. Aug. 24 of tice supplies of $1, bee purchased on July 4 are poid in futt. Sep. a To provide better storage of nountain bikes and kayaks when not in use, the company rents a storage shed for one year, paylne $2,40e (s2ea ger month) in advance. 5ep. 21 Tony conducts a rock-clisbing clinfc, The company receives 113,200 cash. bct. 17 Tony conducts an orienteering clinic. Particlpants practice how to understand a topographicat ap, read af altineter, we a coepass, and orient through hesvily wooded areas. The company receives 117,98c cash. Dec. 1. Tony decides to hols the coapany's first adventure race on Decesber is, Four.person teans uiti race fron checkpoint to checkpoint using a corsination of nountain biking, kayaking, orienteering, trait running, and rock-clisbing sktils. The first teat in each category to cotplete ati checkpoints in order wins. The entry feo for each tean is 45 ee. bec. 5 To hetp organire and protote the race. Tony hires his college roosate, victor. vister will be pais 5se in salary for esch teas that cospetes in the race. His salary wilt be paid after the race. Dec, B the coppany pars 11,2ee to purchase a permit from a state park where the race will be held. The Dec. 5 To help organize and promote the race, Tony hires his college roonate, Victor. Victor will be paid S5e in salary for each team that codpetes in the race. His salary wit be pald atter the race. Dec. 8 The coepany pays $1,2ee to purchase a perait fron a state park where the race will be held. The angunt is recorded as a incellaneous expense. Dec. 12. The company purchases racing supplies for 52 , 900 on account due in 30 days. Supplies include trophics for the top-fanishing teats in each category, pronotlonal shirts, snack foods and drinks for participants, and field markers to prepare the racecourse. Dec. 15 The conpany recelves s2e, eob cash from a total of forty teans, and the race is hetd. Dec. 16 The conpany pays Victor"s salary of 12,000 . bec. 31 The company pays a dividend of 54,000 (52, 600 to Tony and $2,903 to 5 uzie). Dec. 31 Using his personal noney. Tony purchases a dianond ring for s4,5ee. Tony surprises suzie by proposing that they get narfled. Suzie accepts and they get alariedl The following informotion relates to yeaf-end adjusting ebtries as of December 31,2021. a. Depteciation of the mountain bikes purcthosed on July 8 and kayaks purchased on August 4 totals $8,000. b. Sx months' of the one-year insurance policy purchased on July 1 has explred. c. Four months of the one-year rental agreement purchased on Septernber 1 has expired. di Gt the 51,800 of office supplies purchased on Juty 4,3300 remalis 0. Interest expense on the $30,000 loan oblained from the city ceuncil on August 1 should be recorded. f. Or the $2,800 of rocing supplles purchased on Docember 12,5200 remains. 0. Suzite caleulates that the company awes 514,000 in income taxes. 5. For the peribd July 1 to December 31, 2021, prepare an income statement, statement of stockholders enfulty and ciassified balance shet Complete this question by entering your answers in the tabs below. Complete this question by entering your answers in the tabs below. For the period July 1 to December 31,2021 , prepare an income statement. Complete this question by entering your answers in the tabs below. For the period July 1 to December 31,2021 , prepare a statement of stockholders' equity. All account balances on July 1 were zero. Complete this question by entering your answers in the tabs below. Prepare a classified balance sheet as of December 31, 2021. (Amounts to be deducted should be indicated by a minus signc)