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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

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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 enthuslasts. On July 1, 2024, Tony and Suzle 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 Suzle will act as co-presidents of the company. The following business activities occur during July for Great Adventures. and Suzie conducts the mountain biking olinic. Because of the success of the first mountain biking clinic, Tony and suzie holds another mountain biking clinic and the company recelves $2,400. July 24 Pay $760 to a local radio ntation for advertising to appear imediately. A kayaking elinie will July jo Great Adventures receives total cash of $10,500 in advance from 70 kayakers for the upeoming The following transactions oceur over the remainder of 2024 . Auguat 1 Great Adventures obtains a $45,000 low-interest loan for the company from the city council, which has recently passed an initiative encouraging busines dovelopment related to outdoor activities. The loan is doe in three years, and 6 t annual interest is due each year on July 31. Auguat 4 The company purchases 14 kayaks, paying $20,400 cash. Auguet 10 Tony and Suzie conduct the firat kayak clinie. In addition to the $10,500 that was received in kayakers on the day of the clinic. Auguat 17 Tony and suzie conducta a second kayak elinic, and the company receiven $12,300 cash. 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 September 21 Tony and suzie conduct a rock-climbing clinic. The company receives $13,800 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 oriont through heavily wooded areas. The conpany receives $19,800cash. December 1. Tony and Suzie decide to hold the company's first adventure race on December 15. Four-person teams vil1 race from checkpoint to checkpoint uning a combination of mountain biking, kayaking, orienteering, trail running, and rock-ciimbing skills. The first team in each category to complete all checkpoints in order wins. The entry fee for each team is $580. December 5 to help organize and promote the raco, Tony hires his collego roomate, victor. Vietor 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 paye $1,300 to purchase a permit from a state park where the race will be held. The amount in recorded as a niscellaneous expense. December 12 The company purchases racing supplies for $2,900 on account due in 30 daya, 5uppliea include trophles for the top-finishing teama in each category, pronotional ahirts, anaek fooda and December 12 The company purchasen racing supplien for $2,900 on acoount due in 30 dayn. 5 upplies inelude trophies for the top-finishing teams in each eategory, promotional shirts, snack toods and drinks for participant. , and field markers to prepare the racecourbe. December 15 The company receives $23,200 cash from a total of forty teams, and the race in held. December 16 The company pays vietor's salary of $1,200. December 31 The company pays a dividend of $3,400($1,700 to Tony and $1,700 to $4z ie ). December 31 Using his pertonal money, Tony purchaees a diamond ring for $4,500. Tony aurprimen Sazie by proponing that they get married. Suzie accepts and they get marriedi 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 $8,600. 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 $1,400 of office supplies purchased on July 4,$370 remains. e. Interest expense on the $45,000 loan obtained from the city councll on August 1 should be recorded. f. Of the $2,900 of racing supplies purchased on December 12,$280 remains. 9. Suzie calculates that the company owes $13,100 in income taxes. 8. Prepare a post-closing trial balance as of December 31,2024. 8. Prepare a post-closing trial balance as of December 31, 2024

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