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 30,000 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 July 15 July 22 July 24 Sell $15,000 of common stock to Sul. Sell $15,000 of common stock to Tony Purchase a one-year insurance policy for 14,000 ($400 per month) to cover injuries to participants during outdoor clinic Pay legal fees of $1,000 associated with corporation. Purchase office supplies of $1,000 on account. Pay $230 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 $50 the day of the clinic. Purchase 10 mountain bikes, paying $14,700 cash. On the day of the clinic, Great Adventures receives cash of $3,500 in total from 70ers, Sony and sutte conducts the mountain biking clinic Because of the success of the first mountain asking clinic, Toy and Sale holds another ranking clinic and the company receives $3,950 Pay $740 to local refin station for advertising to appear mediately, ang inic will be held on August 10, and attendees can pay $150 in advance a $200 the day of the di Great Adventures receives total cash of $7,500 in advance from se kayakers for the vinylte The following transactions ce over the remainder of 2004 July 20 Great Adventures obtains a $42,000 Interest on for the company from the city cell, with recently passed an initiative encouraging business development related to our activiti August 1 August 4 August 18 August 17 August 24 September 1 Great Adventures obtains a $42,000 low interest loan for the company from the city council, which has recently patted an initiative encouraging business development related to outdoor activities. The loan is due in three years, and anual interest is due each year on July 31. September 21 The company purchases 14 kayaks, paying $17,000 cash. Tony and Suzie conduct the first kayak clinic. to addition to the $7,500 that was received in advance from kayakers on July 30, the company receives additional cash of $4,000 from twenty w kayakers on the day of the clinic. cash Tony and Suzie conducts a second kayak clinic, and the company receives $12, office supplies of $1,300 purchased on July 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 $4,000 ($340 per month) in advance. Tony and Sele conduct a rack-clling clinic. The company receives $13,000 cas October 17 Tony and Satie conduct an orienteering clinic. Participants practice how to understand topographical $1,100 cash December 1 Tony and barle decide to hold the company's first where race on December 25. person teams will December 5 To help e December 8 ace, Tony is his college rats, victor, Victor will be paid 14 in wet competes in the race. His salary will be paid after the ACK December 15 The company receives $27, Ave in 30 days, Salies include this for mal shirts, snack foods an rinks for participants, and cash froe total of forty trans, and the race t December is The company pays victor's salary of $1,000 a. Depreciation of the mountain bikes purchased on July 8 and kayaks purchased on August 4 totals $7,000 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 $1,800 of office supplies purchased on July 4, $330 remains e. Interest expense on the $42,000 loan obtained from the city council on August 1 should be recorded 1.Of the $2,400 of racing supplies purchased on December 12, $120 remains g. Suzie calculates that the company owes $14,700 in income taxes