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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

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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 32,000 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 11 Sell $10,000 of common stock to Suzie. July 1 Sell $10,000 of common stock to Tony. July 2 outdoor clinics. insurance policy for $4,800 ( $400 per ponth) to cover injuries to participants during July 2 Pay legal fees of $1,500 associated with incorporation. July 7 Purchase office supplies of $1,800 on account. to be held a local newspaper for advertising to appear imediately for an upcoming mountain biking clinic July 8 Purchase 10 mouly 15. Attendees will be charged $50 the day of the clinic. July 15 On the day of the clinikes, paying 312,000 cash. conduct the mount clinic, Great Adventures receives cash of $2,00e in total from 40 bikers. Tony and Suzie July 22 Because of the success of the first mountain biking clinic, Tony and suzie hold anothen mountain biking July 24 clinic and the company receives $2,300. August 10 , and atalendees radio station for advertising to appear iamediately. A kayaking clinic will be held on July 30 Great Adventures receives total cash of $4,000 in or $150 on the day of the clinic. The following transactions occur over the remainder of 2024 , in advance from 40 kayakers for the upcoming kayok clinic. recently passed an initiative encouraging business development related to outdoor activities. The loan is due in three years, and 6K annual interest is due each year on J41y31. August 4 The company purchases 14 kayaks, paying $28, 000 cash. August 10 Tony and Suzie conduct the first kayak clinic. In addition to the $4,000 that was recefved in advance from kayakers on July 30 , the company receives additional cash of $3,000 fran 20 neir kayakers on the day of the. clinic. August 17 Tony and Suzie conduct a second kayak clinic, and the company receives $10,500 cash. August 24 office suppiies of $1,860 purchased on July 4 are paid in ful1. September 1 to provide better storase of mountain bikes and kayaks when not in use, the compony rents a storage shed for one year, paying $2,400 ( $200 per month) in advance. Septeaber 21 Tony and Suzie conduct a rock-c1imbing clinic. The company receives 513,200 cash. october 17 Tony and Suzie conduct an orienteering cinic. Participants prectice how to understand a topographical mop, read on oltimeter, use a compass, and orlent through heavily wooded areas. The company receives 317,903 cash. December 1 Tony and Suzie decide to hold the company's first adventure race on December 15. Four-person teams wi11. race from checkpoint to checkpoint using a combination of mountain biking, kayaking, of ienteering. trail running, and rock-climbing ski1ls. The first tean in each category to complete a11 checkpoints in order Wins. The entry fee for each team is $5e0. December 5 To help organize and promote the race, Tony hires his college roammate, victor. victor will be paid $50 in salary for each team that competes in the nace. His salary wil1 be paid after the race. December 8 The company pays $1,200 to purchase a permit from a state park where the race will be held. The amount is recorded os a miscellaneous expense. December 12 The company purchases racing supplies for $2,800 on account due in 30 days. Supplies inc1ude trophies for the top-finishing teans in each category, promotional shirts, snack foods and drinks for participants, and field earkers to prepare the racecourse. December 15 the comgany receives $20,000 cash from a total of forty teams, and the race is held. December 16 the company pays victor's salary of $2,000. Decesber 31 The company pays a dividend of $4,000 ( $2,000 to Tony and $2,000 to suzie). December 31 Using his personal noney, Tony purchoses a diamond ring for $4,500. 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 of the mountain bikes purchased on July 8 and kayaks purchased on August 4 totals $8,000. 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.$300 remains. e. Interest expense on the $30,000 loan obtained from the city council on August 1 should be recorded. f. Of the $2.800 of racing supplies purchased on December 12,$200 remains. g. Suzie calculates that the company owes $14,000 in income taxes. 5. For the period July 1 to December 31, 2024, prepare an income statement, statement of stockholders' equity and classified balance sheet. Complete this question by entering your answers in the tabs below. For the period July 1 to December 31,2024 , prepare an income statement

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