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 35,000 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. Purchase a one-year insurance policy for $5,040 ($420 per month) to cover injuries to participants during outdoor clinics. Pay legal fees of $1,400 associated with incorporation. July 1 Sell $17,500 of common stock to Suzie. July 1 Sell $17,500 of common stock to Tony. July 1 July 2 July 4 July 7 July 8 July 15 July 22 July 24 July 30 Purchase office supplies of $1,600 on account. Pay $310 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 $13,500 cash. On the day of the clinic, Great Adventures receives cash of $1,200 in total from 40 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 $1,750. Pay $830 to a local radio station for advertising to appear immediately. A kayaking clinic will be held on August 10, and attendees can pay $110 in advance or $160 on the day of the clinic. Great Adventures receives total cash of $5,500 in advance from 50 kayakers for the upcoming kayak clinic. The following transactions occur over the remainder of 2024. August 1 August 4 August 10 August 17 August 24 September 1 Great Adventures obtains a $37,000 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 $16,800 cash. Tony and Suzie conduct the first kayak clinic. In addition to the $5,500 that was received in advance from kayakers on July 30, the company receives additional cash of $3,200 from twenty new kayakers on the day of the clinic. Tony and Suzie conducts a second kayak clinic, and the company receives $12,100 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 $4,560 ($380 per month) in advance.