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 39.000 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. July1July1July1July2July4July7Sell$19,508ofcommonstocktoSuzie.Sel1$19,580ofcomonstocktotony.Purchaseaoneyearinsurancepolicyfor$4,080($340pernonth)tocoverinjuriestoparticipantsduringoutdoorellnics.Paylegalfeesof$1,490associatedwithincorporation.Purchaseofflcesuppliesof$1,900onaccount.Pay$300toalocolnewspaperforadvertisingtoappearimmediatelyforanupconingmountalnbikingclinic to be held on 2uly 15. Attendees wil1 be charged $30 the day of the clinic. July 8 Purchase 10 mountoin bikes, poying 518,200 cash. July 15 On the day of the clinic, Great Adventures recelves cosh of \$2, 100 in total from 70 bikers. Tony and Suzie conducts the mountain biking clinic. Juty 22 Because of the success of the fiest mountain biking clinic, Tony and suzie holds anuther mountaln biking clinic and the company recelves $2,550. July 24 Pay 7 Sise to a local rado station for advartioing to appear lamediately. A kayaking clinic will be held on goly 30 August 10, and attendees can pay $140 in advance on 5100 on the doy of the clinic. The following treat Adventures receives total cash of 57,000 in advance feon 50 keyakerz for the upcaning kayak clinic. The following transactions occur over the remainder of 2024 . August 1 Geeat Adventures obtains a 540,000 low-interest loan for the conpany from the clty council, uhich has recently gossed an inittative encounaging business develogment nelated to outdoor activities. The loon is due in three years, and 6x annoal interest is due each year on July 31 . August 4 The company purchases 14 kayaks, poyIng 521 , 0ce cash. August 10. Tony and Suzie conduct the first kayak cilnic. In addition to the $7,000 that vas necelved in advance fron Kayakers on july 30, the company recefves additiondel cash of 33,8Be from thenty nev keyakers on the day of the clinic. Auguse 17 Tony and suzfe conducts a second kayak elintes, and the compsny recelues $11, boe cash. kayakers on July 30, the company receives additianal cash of 33,800 from twenty new kayakens on the day of the clinic. Aupust 17 Tony and Suzte conducts a second kayak clinic, and the coopany recefves 511 , 808 cash. Augast 24 offfce supplies of $1,960 purchased on July 4 are paid in full. Septemher 1 To provide better storage of nountain blkes and kayaks when not: in use, the company rents a storage shed for ane year, paying $3,600 (\$309) per month) in advance. September 21 Tony and Surie conduct a rock-elimbing elinic. The company ceceives $15,100 cash. Detaber 17 Tony and suzie conduct an orlenteering clinic. Partlefpants practice hos to understand a copographical map, read an altimeter, use a cospass, and orient through heavily wooded arzas. The canpany receives 515, 700 cash. Decetber: 1 Fony and Suzte decide to hold the company's flest adventure race on December 15. Four-person ceamis ad11. race fron checkpoint to checkpoint using a combination of mountain biking, kayalding, orienteering, trail running, and rock-cliabing skilis. The first teas in each category to complete all checkpoints in order rins. The entry fee for each team is 5630. December 5 To help organize and prowote the race, Tony hires his college rooenate, Victor. Victori utli be paid 560 in salary for each tean that competes In the race. Mis salary wil1 be paid after the race. December. 1 The company pays 51,900 to purchase a permit from a state park where the race will be held. The anount is reconded as a alscellaneous expense. Decenber 12. The congany purchases racing supplies for 52 , 900 on account due 15 . 30 days. 5 upplies include tropbies for the top-finishing teais in each category, pranotional shiets, snack foods and drinks for participants. and fleld markers to prepare the racecourse. December 15. The conpany receives 525,200 cash from a total of forty teans, and the race 15 held. Cecember 16 . The company pays Victor's salary of $2,400. Pecembee 31 the company pays a dividend of $3,640 (S1, 600 to tony and 51, boo to Suzie). December 31 Using his personal money, Tony purchoses a dinmond ring for 53,50e. Tony, xurprises Suzie by proposing that thay get married, Suzle accepts and they get merriedl. The folowing 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 totats $7.500. b. Six months of the one-year insurance policy purchased on July 1 has expired. c. Four monthe of the one year rental agreement purchased on September 1 has expired. d. Of the 51.900 of afficesupplies purchased on July 4.9270 remains. e. Interest expense on the $49.900 loan oblained from the cify counci on August 1 should be.recorelec. f. Df the $2.900 of racing: supplies purchased on December 12,$150 remains. 9. Suzle calculates that the compary owts $13.500 in income taxes. Journal entry worksheet 67 Depreciation of the mountain bikes purchased on July 8 and kayaks purchased on August 4 totals $7,500. Note; Enter debits before credits