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 Suzle organize their new company as a corporation, Great Adventures Inc. The articies 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 Jul. 1 sel1 $10,000 of conmon stock to Suzie. Jut. 1 Sel1 $10,666 of connon stock to Tony, Jul. 1 Purchase a one-year insurance policy for 54,800 (s400 per nonth) to cover injuries to participants during outdoor clinics. Jut. 2 Pay legal fees of $1,500 associated with incorporation. Jul. 4 Purchase office supplies of $1,800 on account. Jul. 7 Pay for advertising of $300 to a lacal newspaper for an upcoming mountain biking clinic to be held on July 15. Attendees wi11 be charged 55 on the day of the clinic. Jul. 8 Purchase 16 mountain bikes, paying $12,068 cash. Jut. 15 On the day of the clinic, Great Adveatures receives cash of 52,000 from 40 bikers. Tony conducts the mountain biking clinic. Jul. 22 Because of the success of the first nountain biking clinic, Tony holds another mountain biking clinic and the company receives $2,300. Jut. 24 Pay $760 to a local radio station for advertising to appear inmediately, A kayaking clinic Mil1 be held on August 10 , and attendees can pay $100 in advance or $150 on the day of the clinic. Jul. 30 Great Adventures receives cash of $4,000 in advance fron 40 kayakers for the upcoming kayak clinic. Aug, 1 Great Adventures obtains a $30,000 low-1nterest loan for the conpany from the city council, which has recently passed an indtiative encouraging business developnent related to outdoor activities. The loan is due in three years, and 6 s annuat interest is due each year on July 31. Aug. 4. The conpany purchases 14 kayaks, paying $28,000 cash. Aug. 10 Twenty additional kayakers pay $3,000 ( $150 each), in addition to the $4,00a that was paid in advance on Juty 30 , on the day of the cinic. Tony conducts the first kayak clinic. Aug. 17 Tony conducts a second kayak clinic, and the conpany recelves $10,500 cash. Aug. 24 of tice supplies of $1,800 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 sterage shed for one year, paying $2,400 ( $200 per month) in advance. Sep. 21 Tony conducts a rock-clinbing clinic. The company receives 513,200 cash. oct, 17 Tony conducts an orienteering clinic. Participants practice hou to understand a topographical nap. read an altineter, use a cospass, and orient through heavily wooded areas. The conpany receives $17,900 cash, Dec, 1 Tony decides to hold the conpany's first adventure race on Deceaber 15 . Four-person teams with race from checkpoint to checkpoint using a conbination of nountain biking, kayaking, orienteering, trail running, and rock-clinbing skills. The first team in each category to complete all checkpoints in order wins. The entry fee for each tean is $500. Dec, 5 To help organize and pronote the race, Tony hires his college roommate, Victor. Victor wit1 be paid $56 in salary for each tean that competes in the race. His salary witl be paid after the race. Dec. 8 The conpany pays $1,200 to purchase a permit fron a state park where the race will be held. The Dec. 12 The coepany purchases racing supplies for $2,800 on account due in 38 days. 5 upplies include trophies for the top-tinishing 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 teans, and the race 15 held. Dec, 16 The company pays Victor's salary of $2,000. bec. 31 The company pays a dividend of $4,000($2,600 to Tony and $2,600 to 5 tizie). Dec. 31 Using his personal money, Tony purchases a dianond ring for s4, 500 . Tony surprises Suzie by proposing that they get married. Suzie accepts and they get married 1 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 $8,000. 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 $1,800 of office supplies purchased on July 4,$300 remains. e. Interest expense on the $30,000 loan obtained from the city council on August 1 should be recorded. 1. Of the $2,800 of racing supplies purchased on December 12,$200 remains. 9. Suzie calculates that the company owes $14,000 in income taxes. 3. Post transactions from July 1 through December 31 and adjusting entries on December 31 to T-accounts