Tony and Suzie graduate from college in May 2024 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, 2024. Tony and Suzie organize their new company as a corporation, Great Adventures incorporated The articles of incorporation state that the corporation will sell 32,000 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 business activities occur during July for Great Adventures. July 1 Sell $16,000 of common stoek to suzic. July 1 Sell $16,000 of common atock to Fony. July 1 Purchase a one-year insurance policy for $4,680 ( $390 per month) to cover injuries to July 2 Pay legal fees of $1,400 associated with incorporation. July 4 Purchase office supplies of $1,400 on account. July 7 Pay $310 to a local newspaper for advertising to appear immediately for an upconing mountain biking elinic to be held on July 15. Attendees will be charged $30 the day of the olinie. July 8 Purchase 10 mountain biken, paying $11,000 eash. July 15 On the day of the elinic, Great Adventuren receives cash of $2,100 in total from 70 bikers. Tony and Suzie eonducte the mountain biking olinie. July 22 Because of the success of the first mountain biking clinic, Tony and suzie holds another July 24 Pay $760 to a local radio station for advertising to appear immediately. A kayaking clinic will Je held on August 10 , and attendeen can pay $150 in advance or $200 on the day of the olinic. July 30 Great Adventures receives total cash of $10,500 in advance from 70 kayakers for the upconing The following transactions occur over the remainder of 2024 . Mugust 1 Great Adventures obtains a $45,000 low-interest loan for the conpany from the oity council, which han recently passed an initiative encouraging bueiness development related to outdoor activities. The loan is due in three years, and 61 annual interest in due each year on July 31. August 4 The company purehanes 14 kayaks, paying $20,400 eash. August 10 Tony and suzie conduct the first kayak clinic. In addition to the $10,500 that was received in advance from kayakers on July 30, the August 27 Tony and suzie conducta a second kayak olinic, and the company receives $12,300 eash. August 24 office supplies of $1,400 purchased on July 4 are paid in full. september 1 To provide better storage of mountain bikes and kayaks when not in use, the company rents a storage mhed for one year, paying $2,400 (\$200 per month) in advance. Septenber 21 Tony and suzie conduct a rock-climbing clinie. The coepany recelves $13,800 cash. october 17 Tony and suzie conduct an orienteering clinic. Partieipants practice how to understand a topographical nap, read an altimeter, use a compass, and orient through heavily wooded areas. The company receiven 519,800 canh. Decenber 1 Tony and Suzie decide to hold the company's first adventure race on December 15. Four-person orienteering, trail running, and rock-climbing skilis.. The first team in each category to coeplete all cheekpoints in order wins. The entry fee for each team is $980. December 5 To help organize and promote the race, Tony hiren hil college roomate, Vietor. viotor will be paid $30 in salary for each team that competes in the race. His salary will be paid after the race. December : The company pays 91,300 to purchase a perait fron a state park where the race wid1 be held. The asount in recorded as a mincellaneous expense. December 12 The conpany purchases racing nupplien for $2,900 on aceount due in 30 days. Supplies inelude trophies for the top-finishing team in each category, promotional ahirta, anack foods and drinks for partieipants, and fleld markers to prepare the racecourne. Decenber 15 The company roceives $23,200 canh from a total of forty teams, and the race is held. December 16 The company payi Vletor' a ealary of $1,200. Decerber 16 The company pays victor's salary of $1,200. Deceeber 31 The company paye a dividend of $3,400($1,700 to Tony and $1,700 to 5utie). Decenber 31 Using. his personal noney. Tony purebaees a diamond ring for $4,500. Tony surprises 5uzite by proposing that they get matried. Butie acceptn and they get narriedi The following information relates to yoar-end adjusting entries as of December 31,2024. a. Depreciation of the mountain bikes purchased on July 8 and kayaks purchased on August 4 totals $8,600. b. Six months' of the one-year insurance policy purchased on July 1 has expired. 6. Four months of the one-year rental agreement purchased on September 1 has expired. d. Of the $1,400 of office supplles purchased on July 4,$370 remains. e. Interest expense on the $45,000 loan obtained from the clty councll on August 1 should be recorded. f. Of the $2,900 of racing supplies purchased on December 12,5280 remains. 9. Suzie calculates that the company owes $13,100 in income taxes. 3. Post transactions from July 1 through December 31 and adjusting and closing entries on December 31 to T.0ccounts. 7. Post the closing entries of retained earnings to the T-account