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 blking, 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 25,000 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 Sell $12,500 of comon stock to Suzie. July 1 Sell $12,500 of common stock to Tony. Joly 1 Purchase a ene-year insurance policy for $4,320 (\$360 per month) to cover injurles to participants during outdoor July 2 Pay legal fees of $1,900 associated with incorporation. July 4 Purchase office supplies of $1,900 on account. July 7 Pay $220 to a local newspeper for advertising to appear innediately for an upcoeing mountain bikind clinic to be held July is Purchase 10 . mountain bikes, paying $15,500 cash. July 15 On the day of the clinic, Great Adventures receives cash of $2,400 in total froe 40 bikers. Tony and Suzie conducts July z2 the mountain biking elinic. Because of the suckess of the first mountain biking clinic, Tony and suzie holds another nountain biking clinic and the cospany receives $2,850. July 24 Pay 560 to a local radio station for advertising to appear Innediately. A kayakina cJinic will be beld on August 10 , and attendees can pay $110 in advance or $160 on the day of the clinic. July 39 Great Adventures receives total cash of $5,500 in advance from 50 kayakers for the upcoming kayak elinic. The following transactions occur over the resainder of 2024. August 1 Great Adventures obtains a $17,000 low-interest loan for the conpany froen the city council, which has recently passed an initiative encouraging business developisent related to outdoor activities. The loan is due in three years, and 6x August 4 The company purchases 14 kayaks, paying $22,400 cash. August 10 Tory and Suzie conduct the first kayak elinic, In addition to the \$S, see that was received in advance froe kayakers on 3 uly 30 , the conpany receives additional cash of $3,200 from twenty nes kayakers on the day of the clinic. July 24 and attendees can pay $110 in advance or $160 on the day of the clinic. The following transactions occur over the reasinder of 2024 . annual interest is due each year on July 31. August 4 The coepany purchases 14 kayaks, paying $22,490 cash. July 39 , the company receives additiocal cash of $3,200 from twenty nem kayakers on the day of the cinic. Autust 17 Tony and 5 zizie conducts a second kayak clinic, and the conpany receives $11, 300 cash. August 24 Office supplies of $1,900 purchasted on July 4 are paid in full. paying 54,680 (\$390 per sonth) in advance. Septenber 21 Tony and Suzie conduct a rock-climbing clinic, The coepany recelves $13,500 cash. altieeter, use a coepass, and orient through heavily booded areas. The cospany receives $18,400 cash. teala is $540. each tean that coepetes in the race. his salary will be paid after the race. a miscellaneous expense. prepare the racecourse. Decenber 15 The company receives $21,600 cash from a total of forty teans, and the race is held. Decenber 16 The company pays Victor'sisalary of $2,090. Decenber 31 the company pays a dividend of $5,000($2,500 to Tony and $2,500 to 54zie). earried. Suzie accepts and they get narried! 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 $7,580. b. Six month' 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 $1,900 of office supplies purchased on July 4.$370 remains. e. Interest expense on the $37,000 loan obtained from the city council on August 1 should be recorded. f. Of the $2,900 of racing supplies purchased on December 12,$190 remains. g. Suzie calculates that the company owes $14,400 in income taxes. 1. Record each of the transactions listed above in the 'General Journal' tab (these are shown as items 1 to 27 ). Review the 'General Ledger' and the 'Trial Balance' tabs to see the effect of the transactions on the account balances. 2. Record the adjusting entries in the 'General Journal' tab (these are shown as items 28 to 34 ). 3. Review the adjusted 'Trial Balance' as of December 31, 2024. 4. Prepare an income statement for the period ended December 31, 2024, in the 'Income Statement' tab. 5. Prepare a statement of stockholder's equity for the period ended December 31, 2024, in the 'Statement of Stockholder's Equity' tab. 6. Prepare a classified balance sheet as of December 31, 2024 in the 'Balance Sheet' tab. 7. Record the ciosing entries in the 'General Journal' tab' (these are shown as items 35 to 37 )