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 trall 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 36,000 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 $18,600 of common stock to Suzie. July 1 Sell $18,000 of common stock to Tony. July 1 Purchase a one-year insurance policy for $3,840 ( $320 per month) to cover injuries to participants during outdoor clinics. July7July8Pay$270toalocalnewspaperforadvertisingtoappearimmediatelyforanupcomingmountbikingclinictobeheldonJuly15.Attendeeswillbecharged$60thedayoftheclinic. July 8 Puly 15 Purchase 10 mountain bikes, paying $14,500 cash. July 15 On the day of the clinic, Great Adventures receives cash of $3,600 in total from 60 bikers. Tony July 22 Because of the success of the first mountain biking clinic, Tony and Suzie holds another July 24 mountain biking clinic and the company receives $4,0e0. Pay $700 to a local radio station for advertising to appear immediately. A kayaking clinic will be held on August 10 , and attendees can pay $130 in advance or $180 on the day of the clinic. Great Adventures receives total cash of $6,500 in advance from 50 kayakers for the upcoming kayak clinic. August 1 Great Adventures obtains a $43,600 low-interest loan for the company frork the city council, which has recently passed an initiative encouraging business development related to outdoor August 4 The company The loan is due in three years, and 6% annual interest is due each year on July 31 . August 10 Tony and Suzie conduct the faks, paying $15,400 cash. advance from kayakers on 3 ly 30 , the company recelvition to the $6,500 that was received in kayakers on the day of the clinic. August 17 Tony and Suzie conducts a second kayak clinic, and the company receives $11,200 cash. August 24 office supplies of $1,903 purchased on July 4 are paid in fult. September 1 To provide better storage of nountain bikes and kayaks when not in use, the company rents a storage shed for one year, paying $4,080 ( $340 per month) in advance. September 1 To provide better storage of nountain bikes and kayaks when not in use, the company rents a storage shed for one year, paying $4,680 ( $340 per month) in advance. September 21 Tony and Suzie conduct a rock-climbing clinic. The company receives $14,900 cash. October 17 Tony and Suzie conduct an orienteering clinic. Participants practice how to understand a topographical map, read an altimeter, use a compass, and orient through heavily wooded areas. The company receives $18,800 cash. December 1 Tony and Suzie decide to hold the company's first adventure race on December 15. Four-person teans will race from checkpoint to checkpoint using a combination of mountain biking, kayaking, orienteering, trail running, and rock-climbing skills. The first team in e esh category to complete atl checkpoints in order wins. The entry fee for each team is $520. Decenber 5 To help organize and pronote the race, Tony hires his college roomnate, Victor. Victor will be paid $60 in satary for each team that coapetes in the race. His salary will be paid after the race. December 8 The company pays $1,400 to purchase a permit from a state park where the race will be held. The amount is recorded as a miscellaneous expense. Decenber 12 The company purchases racing supplies for $2,500 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. December 15 The company receives $20,800 cash from a total of forty teams, and the race is held. Decenber 16 The company pays Victor's salary of $2,400. December 31 The company pays a dividend of $4,200 ( $2,160 to Tony and $2,100 to Suzie). December 31 Using his personal money, Tony purchases a diamond ring for $4,500. Tony surprises Suzie by proposing that they get married. Suzie accepts and they get married! The following information relates to year-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 $8,200. b. Six month's' 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 $1,900 of office supplies purchased on July 4,$360 remains. e. Interest expense on the $43,000 loan obtained from the city council on August 1 should be recorded. f. Of the $2,500 of racing supplies purchased on December 12,$100 remains. g. Suzie calculates that the company owes $13,700 in income taxes. 3. Post transactions from July 1 through December 31 and adjusting and closing entries on December 31 to T-accounts. 7. Post the closing entries of retained earnings to the T-account. 3. Post transactions from July 1 through December 31 and adjusting and closing entries on December 31 to T-accounts. 7. 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