Tony and Suzie graduate from college in May 2021 and begin developing their new business. They begin by offering clinics for basic outdoor actlvities such as mountain biking or kayaking. Upon developing a customer base, they'll hoid 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 20,000 shares of common stock for $1 each Each share of stock. represents a unit of ownership. Tony and Suzio will act as co-presidents of the company. The following transactions occur from July 1 through December 31. Jut. 1 Sell $10, ebe of conmon steck to Suzie. Jul. I Sell 516, 800 of conen stock to Tony. Jul. 1 Purchase a one-year insurance policy for $4,8e0 (s4e0 per month) to cover injuries to participants during outdoor clinics. Jut. 2 Pay legal fees of $1,5, associated with incerporation. Jut. 4 Purchase office supplies of $1,800 en account. Jut. 7 Pay for advertising of $360 to a locat newspaper for an upconing aountain biking ctinic to be hetd on July 15. Attendees uiti be charged s50 on the day of the clinic. Jut. 8 Purchase 16 sountain bikes, paying 312 , ese cash. Jul. 15 on the day of the clinic, Great Adventures receives cash of 52 , eeb fren 49 bikers. Tony conducts the Jut, 22 Because of the suctess. and the corpany recelves the first mountain biking clinic, Tony holds another mountain biking clinte Jut, 24 Pay s7ee to a r receives $2,3e0, Jut. 24 Pay 5700 to a locat radio station for advertising to appeor incediately. A kayaking ctinic witi be Jut, 30 Great Adventures receives cash st s4,000 $100 in advance or $150 on the day of the clinic. Aug, 1 Great Adventures obtains a $10, eoe toveloterestance from 40 kayakers for the upconing kayak clinic. recently passed an initiative encouraging est loan for the coepany tron the city council, which has loan is due in three years, and 6a annus business developeent related to outdoor activitios. The Aug. 4 The company purchases 14 kayaks, paying 223 , agest is due each year on July 31. Aug. 10 Twenty additional kayakers pay i3, oee (sise, e90 cash. on July 30, on the day of the clinic. Tony cond, in adaition to the 54,000 that was paid in advance Aug. 17 Tony conducts a second kayak clinic, and conducts the first kayak clinic. Aug, 24 office supplies of $1,806 purchased on July conpany recelves 4 are paid in futl. Sep. 1 To provide better storage of mountain oikes and kayaks when not in use, the conpany rents a storage shed for ene year, paying $2,400 (\$2es per eonth) in advance. 5ep. 21 Tony conducts a rock-clinbing clinic. The conpany receives \$13, 200 cash, oct. 17 Tony conducts an orienteering clinic. Participants practice bow to understand a topographicat nap. read an altimeter, use a cospass, and orient through heavily wooded areas. The company receives Dec. 1 Tony decides to nold the company's first adventure race on Decenber 15. Four-person teans witl race from checkpoint to checkpoint using a conbination of mountain biking, kayaking, orienteering. trait running, and rock-climbing skitls. The first tean in each category to coeplete all checkpolints in order wins. The entry fee for each tean is 5500. Dec. 5 To help organize and prosote the race, Tony hires his college roomate, Victor, Victor witt be paid 55e in salary for each teas that coppetes in the race. His salary wril be paid after the race. Dec. 8 The coepany pays $1,2e0 to purchase a pernit fron a state park where the race uitl be held, the Voan is due in three years, and 6 s annual interest 15 due each year on July 31. Aug, 4 The corpany purchases 14 kayaks, paying 528 , eve cash. Aug. 18 Thenty addit ional kayakers pay 53, Dee ( 5150 each). in addit ion to the 54,60a that was paid in advance on July 30, on the day of the clinic. Tony condocts the first kayak clinic. Avg. 17 Tooy conducts a second kayak clintc, and the conpany receives $10,500 cash. Rug. 24 of fice supplies of 51, eba purchased on July 4 are paid in fult. Sep, 1 To provide better storage of bountain bikes and kayaks when not in use, the conpany rents a storage shed for ohe year, paying $2,409. $200 per month) in advance. Sepa 21 Tery conducts a rock-cTanbing clinic. The company recelves $13,290 cash. Oct. 17 Tony conducts an orienteering clinic, Rarticipants practice how to understand a topographical nap. resd an altineter. use a cotpass, and orient through heavily wooded areas. The conpany teceives s17, 980 cashis bec. 1 Tony decides to hold the coopany's first adventure rase on Decenber 15 . Four-persen teass wh1 race free checkpoint te checkpolnt using a conbsnation of nountain biking, kayaking. orientecring, trali. runnifg, and rock-climblng skils. The first tean in each eategory to coeplete all.checkpolits in ofder Mins. The entry fee for each teatt is $5e9. Dec. 3 To help ergandze and prowote the race, Tony hires his college roonate, Victor. Victor wit be paid $50 in salary for each teat that coopetes in the race. Nis salary vill be paid after the race, Dec. 8 The coepany pays $1,2va to purchase a perait fros a state park, where the race witl be held, The anbunt is recerded as a aiscetlaneous expense. Dec. 12 The conpary purchases racing supplies for 12,806 on account due in 30 days, 50pplies include trophies for the top-finishtng teans in each category, prosotional shirts, snack, foods and drinks for. Barticlpants, and fleld barkefs to prepare the racecourse, Dec. 15 The conpany recelves 52%,003 cash fron a total of forty teas, and the race is hetd. Dec. 15 The coepany pays Victor's salary of $2,000. Dec. 31 The conpany pays a dividend of 44,060($2,082 to Tony and 12, eed to 5uz ie), Dec, 31 Using his persenal money. Tony purchases d dianond ring for s4,50b. Tohy surprises Surie by propasing that they get married, suzie accepts and they get earriedl The following infermation relates to yearend adjusting enties as of Docember 31, 2021 . a. Depreciatien of the mountain bihes purchased on July 8 and kayaks purchased on Abagust 4 lotals 58,000 . b. Six months' of the one-year insurance policy purchased on July 1 has expired c. Four months of the oreyear rental agreement purchased on September 1 hos expired d. Of the $1,800 of oftice supplies purchased on July 4,$300 remains. e. Imerest expense on the $30.000 loan obyained frens the city council on August 1 shoudd be recerded 1. Of the 52,800 of racinc sugaties purchased on December 12,$200 remains. 4) Sume calculates that the compony awes 514,000 in income taxes. 4. Prepare an acjutted trial balance as of December 31,2021 . 4 (1) Required information Part 4 ot 5 7 points 5kipped