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 35,000 shares of common stock for $1 each. Each share of stock represents a unit of ownership. Tony and Suzle 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 $17,500 of common stock to Tony. Jul. 1 Purchase a one-year insurance policy for $3,720 (5310 per month) to cover injuriou to participants during outdoor clinico. Jul. 2 ray legal fees of $1,300 associated with incorporation Jul . 4 Purchase office supplies of $1,200 on account. Jul. 7 Pay for advertising of $360 to a local newspaper for an upcoming mountain bixing clinic to be held on July 15. Attendees will be charged $70 on the day of the elinie. Jul. & Purchase 10 mountain bikes, paying $19,900 cash. Jul. 15 on the day of the clinic, Great Adventures receives cash of $4,200 fron 60 bikers. Tony conducte the sountain biking clinic. Jul 22 because of the success of the first mountain biking clinio, Tony holds another mountain biking en inte and the Jul. 24 Pay 8760 to a local radio station for advertising to appear immediately. A kayaking clinic will be held on Auguet 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 from 40 kayakers for the upcoming kayak elinie. Aug . 1 Great Adventures obtains a 641,000 low-interest loan for the company from the city council, which has recently panned an initiative encouraging busineon development related to outdoor activities. The loan is due in three years, and 68 annual interest in due each year on July 31. Aug. 4 The company purchases 14 kayaks, paying $16,900 cash Aug. 10 twenty additional kayakers pay $5,000 6150 each). In addition to the $4,000 that was pald in advance on July 30, on the day of the elinie. Tony conducts the tirat kayak elinie Aug. 17 Tony conducts a second kayak clinic, and the company receives $11,500 cash. Aug. 24 office supplies of $1,200 purchased on July 4 are paid in full. . i to pravide better storage of mountain bikes and kayaks when not in use, the company rants a storage shed for one year, paying $3,000 (5250 per month) in advance. Sep. 21 Tony conducta a rock-climbing clinic. The company receives $13,200 cash. Oot. 17 Tony conducts an orienteering clinic. Participants practice how to understand a topographical map. read an altineter, use a compass, and orient through heavily wooded areas. The company receives $18,000 cash. Dee 1 Tomy 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 via. The entry for for each team is 5640. Dec. 5 To help organize and promote the race. Tony hires his college roomate, Victor. Vietor will be paid 360 in salary for each tean that competes in the race. His walary will be paid after the race. Deci The company pays $1,700 to purchase a permit from stata park where the race will be held. The amount in recorded as a miscellaneous expense Dec. 12 The company purchases racing supplies for $2,700 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 $25,600 cash from a total of forty teams, and the race is held. Dec. 16 The company pays Victor's salary of 52.400. Dec 01 The company pays a dividend of $3,500 ($1,750 to Tony and $1,750 to Surte) Dec. 31 Using his personal money. Tony purchase a diamond ring for $4,600. Tony surprises Susie by proposing that they get married. unle 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 $7,360 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. or the $1200 of office supplies purchased on July 4, $320 remains e. Interest expense on the $41.000 loan obtained from the city council on August 1 should be recorded. f of the $2.700 of racing supplies purchased on December 12. $200 remains 9. Suzie calculates that the company owes $54,800 in income taxes. Requirement General Journal General Ledger Statement of Trial Balance Income Statement SE Balance Sheet 1. Record each of the transactions listed above in the "General Journal tab (these are shown as tems 1 - 27). Review the "General Ledger and the Trial Balance'tabs to see the effect of the transactions on the account balances 2. Record the adjusting entries in the General Journal tab these are shown asems 28-34). 3. Review the adjusted Trial Balance as of December 31, 2021 4. Prepare an income statement for the period ended December 31, 2021, in the income Statement tab. 5. Prepare a statement of stockholder's equity for the period ended December 31, 2021, in the Statement of Stockholder's MacBook Air 30 SRP ga DU 3: A + 3 $ 4 & 7 1 O 2 5 6 8 9 W E R T Y U 1 0 S D F G H . J L D. Six months of the one-year insurance policy purchased on July 1 nas expirea. c. Four months of the one-year rental agreement purchased on September 1 has expired. d. Of the $1,200 of office supplies purchased on July 4. $320 remains. e. Interest expense on the $41,000 loan obtained from the city council on August 1 should be recorded. 1. Of the $2,700 of racing supplies purchased on December 12, $200 remains. g. Suzle calculates that the company owes $14,800 in income taxes. Requirement General Journal General Ledger Trial Balance Income Statement Statement of SE Balance Sheet 1. Record each of the transactions listed above in the 'General Journal' tab (these are shown as items 1 - 27). Review the "General Ledger' and the Trial Balance' tabs to see the effect of the transactions on the account balances. 2. Record the adjusting entries in the 'General Journal' tab (these are shown as items 28-34). 3. Review the adjusted 'Trial Balance' as of December 31, 2021. 4. Prepare an income statement for the period ended December 31, 2021, in the 'Income Statement' tab. 5. Prepare a statement of stockholder's equity for the period ended December 31, 2021, in the 'Statement of Stockholder's Equity' tab. 6. Prepare a classified balance sheet as of December 31, 2021 in the 'Balance Sheet' tab. 7. Record the closing entries in the 'General Journal' tab (these are shown as items 35-37). Room General Journal > Saved Homework Problems ESL umpere UUTE IUUU IUOI Udine HOME LILY LUCII OF August I SHUIU U TELUU. 1. Of the $2,700 of racing supplies purchased on December 12, $200 remains. g. Suzie calculates that the company owes $14,800 in income taxes. Requirement General Journal General Ledger Trial Balance Income Statement Statement of SE Balance Sheet The ending balance values from the General Ledger tab flows through to the Trial Balance below. Unadjusted GREAT ADVENTURES, Inc. Trial Balance December 31, 2021 Account Title Debit Credit Total $ OS 0 US COOL WUERO VUELU UM HI HOUSE then populate the balances in those accounts from the trial balance. EU*** Unadjusted GREAT ADVENTURES, Inc. Income Statement December 31, 2021 Revenues: Total Revenues Expenses: Total Expense WHICHI LACS. Requirement General Journal General Ledger Trial Balance Income Statement Statement of SE Balance Sheet Using the dropdown buttons, select the item that accurately describes the values that either increase or decrease the balance indicated Unadjusted GREAT ADVENTURES, Inc. Statement of Stockholders' Equity For the year ended December 31, 2021 Common Stock Retained Earnings Total Stockholders' Equity Requirement General Journal General Ledger Trial Balance Income Statement Statement of SE Balance Sheet The balance sheet is the accounting equation: Assets - Liabilities + Equity. Each asset and liability account is reported separately on the balance sheet. Unadjusted GREAT ADVENTURES, Inc Balance Sheet December 31, 2021 Assets Liabilities Current Assets: Current Liabilities: Total Current Liabilities Total Current Assets Long-term assets: Total Liabilities Stockholders' Equity Total Stockholders' Equity Total Liabilities and Stockholders' Equity Total Assets