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, theyil 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, orlenteering, 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 38,000 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. July1July1Jaly1Sel1519,000ofcommonitoektoSazle,Sel1519,000ofcommonstocktoTony,Turchaseaone-yearinsurancepolicyfor$3,040(5320permontb)tocoverinjuriestopartioipantaduring July. 2 pat legal feen of $1,300 asmociated vith incorporation. July 4 Purchase office supplien of $1,800 on account. July 7 Ray $400 to a local newapaper for advertising to appear innediately for an upeoing nountain biking elinic to be held on July 15. Attendeen vil1 be charqed 550 on the day of the olinic. July 8. Purchase 10 nountain bikes, paying $11,000 conh. Jaly is on the day of the olinio, Great Adventuren receiven dash of $3,500 in total tron 70 bikere. Tony and surie. July 22 ponducts the mountaln blking olinie, Joly 24 clinio and the company receives $3,800. Pay $920 to a local radio station for odvertiaing to appenf innediately, A kayaking elinio will be held on Jaly 30 Auqust 10 , and sttendees can pay $120 in advance or $170 on the day of tbe elinie. the fol1owing tranadetiona oocur over the reatinder of 2024. Magust 1 Great Adyeatures obtains a $44,000 lev-interest loss for the company fron the elty coancil, uhich has. repently passed an initiative encoaragibg business developant related to oatdoor activitien. The loan ia. due in three yeare, and 6 t annual interest is due each yaar on july 11. Avquat 4 The conpany purehases 14 kayaks, paying $19,200 canh. August 10 Tooy and Sarie conduct the first kayak elinic. In addition co the $7,200 that was reeelved in advance from kayakers on duly 30 , the coepany receives additional casb of $3,400 fron twenty nev keyakera on the day of the elinic. Nugast 17 Tony and suzie oonduets a second kayak-o1likie, and the conpany recelves a12, 400 cash. August 24 office supplien of $1,800 purehased on guly 4 are paid in full. Septeober 1 To provide bettor atorage of mountein bikes and kayaks vhen pot in use, the eorpany rents a storage shed Maguet: 17 Tony ana Suzte conducts a second kayak clinio, and the conpany recesves $12,400 cast. Augant 24 office supplies of $1,800 purohased on July 4 are paid in fall. Septenber 1 To provide better storape of mountain bikes and kayaks when not in use, the conpany rents a storage shed for one year, paying $4,200 ( $350 per month) in advance. Septeaber 21 Tony asd satio conduct a roek-climbing clinie. The company receiven $14,800 eash. October 17 Tony and Suzie eonduct an orienteering elinic. partioipants practice hou to anderntand a topographical map. read an altimetes, use a coepass, and orient through heavily wooded areas. The coapany receives \$19, 300 December 1 Fony and Suztie decide to hold the company'n first adventure race on December 15 . Four-person teans wili. cash. race fron checkpoint to checkpoint using a combination of pountain biking, kayaking, orienteering, trail running, and roek-climbing akilis. The firat tean in each eategory to complete all checkpoints in order vins. The entry tee for each team in $560. December 5 To belp organize and promote the race, Tony bires his college roomete, victor. Victor will be paid $60 in Deceaber salary for each teas that competes in the race. His nalary vili be paid after the race. Decesber 12 the conpany purchasen racing mupplies tor $2,500 on account due in 30 days. 5 thpplies include trophies tor the top-inishing teans in each category, promotional shirts, snack fooda and drinks for participants, and. field markers to prepare the racecourse. December 15 The eonpany recelyes $22,400 canh from a total of forty teams, and the race in held. Decenber 16 the coepany pays victor' i nalary of $2,400. December 31 the company pays a dividend of $3,400 (\$1,700 to Tony and $1,700 to $uz1e). Decenber 31 Uaing his personal noney, Tony purehanea a diamond ring for $3,900. Teny nurprinen suzie by proposing that they get narried. Suzie accepts and they get marriedi 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 $6,040. 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,$380 remains. e. Interest expense on the $44,000 loan obtained from the city council on August 1 should be recorded. f. Of the $2,500 of racing supplies purchased on December 12,$290 remains. 9. Suzie calculates that the compony owes $14,900 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 Stockhoider'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 ). 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, theyli hoid 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 38,000 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. - eatdoor elinies. July 2 Pay legal feen of $1,300 asaociated vith incorporation. July 4 Purchase office supplien of $1,800 os account. Tuly 7 Pay $400 to a local newapaper for advertising to appear intilately for an upeaning nountain biking elisio to be held on duly 15 . Attendeen vill be charged 550 on the day of the olinie. July B Purchase 10 mountain bikee, paying $11,000 cosh. Joly is On the day of the clinio, Great Adventuren roceiven cash of $3,500 in total tron 90 bikere. Tocy and suzie Jaly 22 ponducts the mountain blking clinic. Joiy 24 Pay $920 to a local radio station for odvertieing to appent immediately, A kayaking elinio wili be held on. The followisg tranaactions occur over the remainder of 2024 . kagust 1 Great Adventures obtains a $44,000 lew-interest losn for the compasy fron the elty couneil, which has. recently passed an initiative encoaraging bosiness developsate related to outdoor activitien. The loan in due in three yeara, and 6t annual interest is due each year on July 31 . Noquat 4 The conpany purehases 14 kayaks, paying 519,200 canh. August 10. Toay and surie conduct the tirnt kayak olinic. In addition to the $7,200 that wan recelved in advance froo kayakeks on duly 30, the company receives additional canb of $3,400 fron twaty new keyakers on the day of the elinic. August 17 Tony and suzie conducts a necond kayak-elinke, and the conpany recelven $12,400 cash, August 24 office nupplies of 51,800 purehased on July 4 are paid in ful1. Septemer 1 fo provide bettor atorage of mountsin bikes and kayaks when pot in use, the company rents a storage shed