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 July 1 July 1 July 2 July 4 July 7 July 8 July 15 July 22 July 24 July 30 August 1 August 4 August 10 August 17 August 24 September 1 Sell $16,000 of common stock to Suzie. Sell $16,000 of common stock to Tony. outdoor clinics. Purchase a one-year insurance policy for $3,600 ($300 per month) to cover injuries to participants during Pay legal fees of $1,900 associated with incorporation. Purchase office supplies of $1,600 on account. Pay $260 to a local newspaper for advertising to appear immediately for an upcoming mountain biking clinic to be held on July 15. Attendees will be charged $30 on the day of the clinic. Purchase 10 mountain bikes, paying $15,900 cash. On the day of the clinic, Great Adventures receives cash of $2,400 from 80 bikers. Tony and Suzie conducts the mountain biking clinic. Because of the success of the first mountain biking clinic, Tony and Suzie holds another mountain biking clinic, and the company receives $3,000. Pay $760 to a local radio station for advertising to appear immediately. A kayaking clinic will be held on August 10, and attendees can pay $140 in advance or $190 on the day of the clinic. Great Adventures receives cash of $8,400 in advance from 60 kayakers for the upcoming kayak clinic. The following transactions occur over the remainder of 2024. Great Adventures obtains a $47,000 low-interest loan for the company from the city council, which has recently passed an initiative encouraging business development related to outdoor activities. The loan is due in three years, and 6% annual interest is due each year on July 31. The company purchases 14 kayaks, paying $12,100 cash. Tony and Suzie conduct the first kayak clinic. In addition to the $8,400 that was received in advance from kayakers on July 30, the company receives additional cash of $3,800 from 20 new kayakers on the day of the clinic. Tony and Suzie conducts a second kayak clinic, and the company receives $11,900 cash. office supplies of $1,600 purchased on July 4 are paid in full. To provide better storage of mountain bikes and kayaks when not in use, the company rents a storage shed. for one year, paying $3,480 ($290 per month) in advance. September 21 Tony and Suzie conduct a rock-climbing clinic. The company receives $13.400 cash. July 22 the mountain biking clinic. July 241 July 30 August 1 August 4 August 10 August 17 August 24 September 1 September 21 October 17 December 1 December 5 December 8 December 12 December 15 December 16 December 31 December 31 Because of the success of the first mountain biking clinic, Tony and Suzie holds another mountain biking clinic, and the company receives $3,000. Pay $760 to a local radio station for advertising to appear immediately. A kayaking clinic will be held on August 10, and attendees can pay $140 in advance or $190 on the day of the clinic. Great Adventures receives cash of $8,400 in advance from 60 kayakers for the upcoming kayak clinic. The following transactions occur over the remainder of 2024. Great Adventures obtains a $47,000 low-interest loan for the company from the city council, which has recently passed an initiative encouraging business development related to outdoor activities. The loan is due in three years, and 68 annual interest is due each year on July 31. The company purchases 14 kayaks, paying $12,100 cash. Tony and Suzie conduct the first kayak clinic. In addition to the $8,400 that was received in advance from kayakers on July 30, the company receives additional cash of $3,800 from 20 new kayakers on the day of the clinic. Tony and Suzie conducts a second kayak clinic, and the company receives $11,900 cash. office supplies of $1,600 purchased on July 4 are paid in full. To provide better storage of mountain bikes and kayaks when not in use, the company rents a storage shed for one year, paying $3,480 ($290 per month) in advance. Tony and Suzie conduct a rock-climbing clinic. The company receives $13,400 cash. 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 $19,200 cash. Tony and Suzie decide 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 wins. The entry fee for each team is $570. To help organize and promote the race, Tony hires his college roommate, Victor. Victor will be paid $70 in salary for each team that competes in the race. His salary will be paid after the race. The company pays $1,200 to purchase a permit from a state park where the race will be held. The amount is recorded as a miscellaneous expense. The company purchases racing supplies for $2,200 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. The company receives $22,800 cash from a total of forty teams, and the race is held. The company pays Victor's salary of $2,800. The company pays a dividend of $4,900 ($2,450 to Tony and $2,450 to Suzie). Using his personal money, Tony purchases a diamond ring for $3,800. 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. Choose the appropriate accounts to be reported on the income statement. Select the 'adjusted' from the dropdown, which will then populate the balances in those accounts from the trial balance. Adjusted Revenues: Total Revenues Expenses: GREAT ADVENTURES, INCORPORATED Income Statement December 31, 2024 $ 0 0 Total Expense $ 0 No Date 1 July 01 Cash Common Stock 2 July 01 Cash Common Stock 3 July 01 Prepaid Insurance Cash General Journal Debit 16,000 Credit 16,000 16,000 16,000 3,600 3,600 4 July 02 Legal Fees Expense 1,900 Cash 1,900 5 July 04 Supplies (Office) 1,600 Accounts Payable 1,600 6 July 07 Advertising Expense Cash 260 260 7 July 08 Equipment (Bikes) Cash 15,900 15,900 8 July 15 Cash 2,400 Service Revenue (Clinic) 2,400 9 July 22 Cash 3,000 Service Revenue (Clinic) 3,000 10 July 24 Advertising Expense Cash 760 760 11 July 30 Cash 8,400 Deferred Revenue 8,400 12 August 01 Cash Notes Payable 13 August 04 Equipment (Kayaks) Cash 47,000 47,000 12,100 12,100 14 August 10 Cash 3,800 Deferred Revenue 8,400 Service Revenue (Clinic) 12,200 15 August 17 Cash 11,900 Service Revenue (Clinic) 11,900 16 August 24 Accounts Payable Cash 17 September 01 Prepaid Rent Cash 1,600 1,600 3,480 3,480 18 September 21 Cash 13,400 Service Revenue (Clinic) 13,400 19 October 17 Cash 19,200 Service Revenue (Clinic) 19,200 20 20 December 01 No Journal Entry Required 21 December 05 No Journal Entry Required 22 22 December 08 Miscellaneous Expense 1,200 Cash 1,200 23 23 24 24 Accounts Payable December 12 Supplies (Racing) 2,200 2,200 4,900 4,900 December 15 Cash 22,800 Service Revenue (Racing) 22,800 December 16 Salaries Expense 2,800 Cash 2,800 25 25 20 26 December 31 Dividends Cash 22 27 December 31 No Journal Entry Required 28 26 December 31 Depreciation Expense 5,600 Accumulated Depreciation 5,600 29 December 31 Insurance Expense 1,800 30 December 31 Rent Expense Prepaid Rent 31 December 31 Supplies Expense (Office) Supplies (Office) 32 December 31 Interest Expense Interest Payable 33 December 31 Supplies Expense (Racing) 1,160 1,350 1,160 1,350 1,175 1,175 1,970 1,970 Supplies (Racing) 34 December 31 Income Tax Expense 13,400 Income Taxes Payable 13,400