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, orlenteering, and trail running. In the long run, they plan to sell outdoor gear and develop a fopes 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 36,000 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 actlvities occur during July for Great Adventures: July 1. Sel1 518,000 of conmon etock to suzie. Jaly 1 Sel1 518,000 of conmon stock to Tony. July 1 Purchase a one-year insurance poliey for $4,560 (\$380 per month) to cover injuries to participanto during outdoor elinicis. Ioly 2 Pay legal fees of 51,300 associated with incorporation. jaty 4 Purchase offtce mupplien of 51,700 on account. duly 7 Pay $260 to a local nevspaper for advertieing to appear immadiately for an upcoming mountain biking olinle to be held on July 15 . Attendeen wi11 be charged $70 on the day of the elinie. July 0 purchase 10 nountain bikes, paying $14,500 cash. fuly is On the day of the clinte, Greot Mdventuren recelvei eash of 94,900 in total from 70 bikerin. Tony and Suale. July-22- conduotin the mountain biking elinie. Augost. 10, and attendeen can pay 5120 in advance or 5170 on the day of the olimide. The following trandactions ocour over the remainder of 2024. August 1 Great Adventures obtaini a 544,000 . Lov-interent loan for the cospany frout the oity counell, whiob hat recently pasised an initiative encouraging buainese dovelopgent related to outdoor activitiel. The loan is. due in three years, and 61 andal intereat 10 due each year on july 31. Nuguat 4 The company purchasien 14 Kayaka, paying $23,800 cash. Aogust 10 Tony and fuxie conduct the flrat kayak olinio. In addition to the 50,400 that yai received in adyance troen. Kayakek on July 30 , the eonpany receiven additional canh of $3,400 from twenty nev kayakera on the day of the alinic. Awquat 17 Tony and Suaie conduots a necond kayak olinio, and the cospasy receiveil 511,800 cash. Mugust 24 office nupplies of 51,700 parchased on July 4 are paid in ful1. Septenber 1 to provide betcer ntorage of nountain biken and kayakn when not in ane, the ooapany ranti a ptoragn ibind for one year, paying $3,960 ( 5330 per monch) in advance. Septenber 21 Tony and Suzfe conduot a rock-olimbing olinic. The coepany receives $13,600 casb. September 21 Tony and Susie conduct a rock-olimbing ollnte. The conpany receives $13,600 cash. Detobor 17 Tony and suaie conduct an orienteering olinio. Rarticipantin practice hou to underetand a topographical anp, read an altinoter, vie a compans, and orlent through heavily wooded areall. The conpany rocefven. 519 , ooo cash. December 1 Tony ja Suzie decide to hold the company's firat adventuro raco on-December 15. Faur-person teant wili. race ftym checkpoint to checkpoint uning a combination of mountain biking, kayaking, orionteering, tzail running, and rock-cliabing akilla. The firat tean in each category to couplete all eheckpolnta in ordur wins. The entry tee for each team is 5580 . Decenber: 5 To help organize and pronote the race, Tony hires hin collego roodiate, victor. Vietor will be paid $70 in dajary for eoch tean tha eonpeten in the raca. Hif salary will be pald after the race. Decemberi 8 The company payn $1,300 to purchane a permit from a atate park whare the race vill be held. The amount in cecorded as a mirsellaneous expense. Deceifber-12 The company purchanes racing supplifea for 52,600 on account due in 30 days. 3 upplief include trophes for the top-finiaking toams in oach category, pronotional ehirts, anack fooda and drinks for participanta, and Hold markera to prepare the racecourate. December 15 the company receives 523,200 cash froa a total of forty teans, and the race in held. December 16 the company payn Victor, in ilalary of $2,800. December 31 the cocpany pays a dividend of $3,800(51,900 to Tony and 51,900 to 50arle). December 31 Using his personal money, Tony purehaes a diamond ring for $4,600. Tony, aurprises surie by proposing that thoy get martied. surte acoeptin and tboy get martied 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 $7,660. 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 $1700 of office supplies purchased on July 4, $390 remains. 6. Interest expense on the $44.000 loan obtained from the city council on August 1 should be recorded. f. Of the $2,600 of racing supplies purchased on December 12 , $170 remains. 9. Suzie calculates that the company owes $14,800 in income taxes. Each journal entry is posted automatically to the general ledger
