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 34,000 shares of common stock for $1 each. Each share of stock represents a unit of ownership. Tony and Suzle 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 8 July 15 July 22 July 24 Ju 1 y 30 Sel1 $17,000 of common stock to Suzie. sel1 $17,000 of common stock to Tony. Purchase a one-year insurance policy for $5,000 ( $500 per month) to cover injuries to participants during outdoor elinics. pay legal fees of $1,300 associated with incorporation. Purchate office supplies of $1,100 on account. Pay $240 to a local newspaper for advertising to appear immediately for an upcoming mountain biking olinie to be held on July 15 . Attendees will be charged $60 the day of the olinic. Purchase 10 mountain bikes, paying $16,600 cash. On the day of the clinic, Great Adventures recelves cash of $3,000 in total from 50 bikera. Tony and suzie conducts the mountain biking elinie. Because of the atsceess of the firat mountain biking elinic, Tony and suzie holds another mountain biking elinic and the company receives $3,550. Pay $710 to a local radio station for advertielng to appear imthediately, A kayaking clinic will be held on August 10 , and attendees can pay $140 in advance or $190 on the day of the clinic. breat Adventures receives total cash of $7,000 in advance from 50 kayakers for the upcoming kayak elinie. The following transactions occur over the remainder of 2024 t August 1 Great Adventures obtains a 543,000 low-interest loan for the company from the city council, whieh has reeently passed an initiative encouraging business development related to outdoor activities. The loan is due in three years, and 61 annual interest is due each year on July 31. The company purchases 14 kayaks, paying $12,100 eash. August 4 Augunt 10 August 17 Tony and suzie eonduct the first kayak olinic. In addition to the $7,000 that was received in advance from kayakers on July 30, the company receives additional canh of 53 , 800 from twenty nev kayakers on the day of the clinic. Tony and suzie conducta a second kayak elinic, and the company receives $11,800 cash. office supplien of $1,100 purchased on July 4 are paid in fuli. August 24 september September 21 storage shed for one year, paying $3,240 ( $270 per month) in advance. october 17 Tony and Suzie conduct an orienteering clinic. Participants practice how to understand a 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 woodted areas. The company receives $18,100 cash. December 1 Tony and Suzie decide to hold the company's 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 $530. December 5 To help organize and promote the race, Tony hires his college roomate, vietor. victor will be paid $30 in salary for each team that competes in the race. His salary wil1 be paid after the race. December 8 The company pays $1,900 to purchase a permit from a state park where the race will be held. The amount it recorded as a tiscellaneous expense. December 12 The company purchases racing supplies for $2,900 on account due in 30 days. Supplies inelude trophies for the top-finishing teams in each category, promotional shirts, snack foods and drinks for participants, and field markers to prepare the racecourse. December 15 The company receives $21,200 cash from a total of forty teams, and the race is held. December 16 The company pays victor's galary of $1,200. December 31 The company pays a dividend of $3,400($1,700 to Tony and $1,700 to $ tazie). 2 December 31 Using his personal money, Tony purchases a diamond ring for $5,400. Tony surprises Suzie by proposing that they get married. Suzie accepts and they get married! The following information relates to year-end adjusting entries as of December 31, 2024 . a. Depreciation the mountain bikes purchased on July 8 and kayaks purchased on August 4 totals $7,400. 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 $1,100 of office supplies purchased on July 4,$330 remains. e. Interest expense on the $43,000 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 $13,500 in income taxes. 3. Post transactions from July 1 through December 31 and adjusting and closing entries on December 31 to T-accounts. 7. Post the closing entries of retained earnings to the T-account