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, theyll 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.

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 $8,360.

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 $1,300 of office supplies purchased on July 4, $310 remains.

e. Interest expense on the $37,000 loan obtained from the city council on August 1 should be recorded.

f. Of the $2,400 of racing supplies purchased on December 12, $260 remains.

g. Suzie calculates that the company owes $13,800 in income taxes.

Prepare the journal entries for transactions.

Note: If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.

1. July 01 Sell $15,000 of common stock to Suzie.

2. July 01 Sell $15,000 of common stock to Tony.

3. July 01 Purchase a one-year insurance policy for $4,440 ($370 per month) to cover injuries to participants during outdoor clinics.

4. July 02 Pay legal fees of $1,100 associated with incorporation.

5. July 04 Purchase office supplies of $1,300 on account.

6. July 07 Pay $220 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 $60 on the day of the clinic.

7. July 08 Purchase 10 mountain bikes, paying $19,300 cash.

8. July 15 On the day of the clinic, Great Adventures receives cash of $2,400 from 40 bikers. Tony and Suzie conducts the mountain biking clinic.

9. July 22 Because of the success of the first mountain biking clinic, Tony and Suzie holds another mountain biking clinic, and the company receives $2,950.

10. July 24 Pay $790 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.

11. July 30 Great Adventures receives cash of $11,200 in advance from 80 kayakers for the upcoming kayak clinic.

12. August 01 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.

13. August 04 The company purchases 14 kayaks, paying $22,500 cash.

14. August 10 Tony and Suzie conduct the first kayak clinic. In addition to the $11,200 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.

15. August 17 Tony and Suzie conducts a second kayak clinic, and the company receives $10,700 cash.

16. August 24 Office supplies of $1,300 purchased on July 4 are paid in full.

17. September 01 To provide better storage of mountain bikes and kayaks when not in use, the company rents a storage shed for one year, paying $3,840 ($320 per month) in advance.

18. September 21 Tony and Suzie conduct a rock-climbing clinic. The company receives $14,600 cash.

19. October 17 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 $18,900 cash.

20. December 01 Tony and Suzie decide to hold the companys 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 $590.

21. December 05 To help organize and promote the race, Tony hires his college roommate, Victor. Victor will be paid $40 in salary for each team that competes in the race. His salary will be paid after the race.

22. December 08 The company pays $1,600 to purchase a permit from a state park where the race will be held. The amount is recorded as a miscellaneous expense.

23. December 12 The company purchases racing supplies for $2,400 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.

24. December 15 The company receives $23,600 cash from a total of forty teams, and the race is held.

25. December 16 The company pays Victors salary of $1,600.

26. December 31 The company pays a dividend of $4,300 ($2,150 to Tony and $2,150 to Suzie).

27. December 31 Using his personal money, Tony purchases a diamond ring for $5,200. Tony surprises Suzie by proposing that they get married. Suzie accepts and they get married.

28. December 31 Record the adjusting entry for depreciation. Depreciation of the mountain bikes purchased on July 8 and kayaks purchased on August 4 totals $8,360.

29. December 31 Record the adjusting entry for insurance. Six months of the one-year insurance policy purchased on July 1 has expired.

30. December 31 Record the adjusting entry for rent. Four months of the one-year rental agreement purchased on September 1 has expired.

31. December 31 Record the adjusting entry for office supplies. Of the Of the $1,300 of office supplies purchased on July 4, $310 remains.

32. December 31 Record the adjusting entry for interest. Interest expense on the $37,000 loan obtained from the city council on August 1 should be recorded.

33. December 31 Record the adjusting entry for racing supplies. Of the $2,400 of racing supplies purchased on December 12, $260 remains

34. December 31 Record the adjusting entry for income taxes. Suzie calculates that the company owes $13,800 in income taxes.

35. December 31 Record the entry to close the revenue accounts.

36. December 31 Record the entry to close the expense accounts

37. December 31 Record the entry to close the dividends account.

August 24 Office supplies of $1,300 purchased on July 4 are paid in full. 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 closing entries in the 'General Journal' tab (these are shown as items 35 to 37 ). Prepare the journal entries for transactions. Note: If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Journal entry worksheet Note: Enter debits before credits. Each journal entry is posted automatically to the general ledger. General Ledger Account Data is not available until journal entries have been entered. Each journal entry is posted automatically to the general ledger. General Ledger Account Data is not available until journal entries have been entered. Each journal entry is posted automatically to the general ledger. General Ledger Account Data is not available until journal entries have been entered. The ending balance values from the General Ledger tab flows through to the Trial Balance below. The ending balance values from the General Ledger tab flows through to the Trial Balance below. The ending balance values from the General Ledger tab flows through to the Trial Balance below. Choose the approprlate 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. Choose the approprlate 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. 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. Using the dropdown buttons, select the item that accurately describes the values that either increase or decrease the balance indicated. Select 'Adjusted' from the dropdown, which will then populate the balances in those accounts from the trial balance. Jsing the dropdown buttons, select the item that accurately describes the values that either increase or decrease the balance ndicated. Select 'Adjusted' from the dropdown, which will then populate the balances in those accounts from the trial balance Using the dropdown buttons, select the item that accurately describes the values that either increase or decrease the balance indicated. Select 'Adjusted' from the dropdown, which will then populate the balances in those accounts from the trial balance. The balance sheet is the accounting equation: Assets = Liabilities + Equity. Each asset and liability account is reported separately on the balance sheet. The balance sheet is the accounting equation: Assets = Liabilities + Equity. Each asset and liability account is reported separately on the balance sheet. The balance sheet is the accounting equation: Assets = Liabilities + Equity. Each asset and liability account is reported separately on the balance sheet