Tony and Suzie groduste from college in Moy 2021 and begin developing their new business. They begin by offering clinics for basic outdoor sctivities such as mountsin biking or koyaking. Upon developing s customer bose, they'll hold their first adventure races. These roces will inwolve four-person teams that roce from one checkpoint to the next using a combination of ksyoking, mountain bituing, orienteering, and troil running. In the long run, they plon to sell outdoor geor and develop o ropes course for ousdoor enthusiosts. On July 1, 2021, Tony and Suzie organize their new company as a corporation, Greot Adventures inc. The orticles of incorporasion state that the corporation will sell 20,000 shores of common stock for $1 each. Each shore of stock represents a unit of ownership. Tony and Suzie will oct as co-presidents of the company. The following transoctions occur from July 1 through December 31. Ju1. 1 Sell s10,000 of conon stock to Suzle. Jul. I Sell ste, 600 of concon stodk to Tary. Jul. I Purclase a one-year insurance policy for $4,800 (\$40e per nonth) to cover injurles to participants doring outdoon cilinics. Jul. 2 pay legal tees of \$1,50e associated with incorporation. Jul. 4 Purclave office suppiles of 51 , 960 on account. Jul. 7. Pay for advertising of $100 to a local newspoper for an ypconing mointain biking clinic to be held on July 15. Attendeens will be charged $50 on the day of the clinic. 3ul. B Purchase 10 mwantain blies, paying $12,000 cash. Jol. 15 on the day of the clinlc, Great Adventures recelves cash of 32,ee0 frun 4e bikers. Tory conducts the mountain bling cilnic. Jut, 22 Decouse of the succeis of the flest noaitaln biking clinic, Tony holds another nountain: bliking clinic and the coepaily recelves $2,300. 3ul. 24 Pay \$7oe to a local rauto station tor advertising to appear imediately. A kayaking clinic. w111 be held on August 19, and attendees can pay 3100 in advance or s1se on the day of the clinic. 3ut. 3e Great Adventures recelves cash of $4,400 in advarice fron 40 kayakers for the upcaning kayak clinte. Aus- 1 Ereat Adventures obtains a $30,080 low-1nterest loan for the corpary tran the city council, mich has recently passed an initlative encouraging business developoent related to outdoor activities. The loan is tue in thren years. and 6x annual interest is due each year on July 31. Aug. 4 The comary purchases 14 kayaks, paydrs $28,000 caih. Aus. 10. Thenty additional hayakers play s3, 009 ( 315e, esch), In adoitlon to the 54,600 that was paid in advarce on July 3e, on the iloy of the cilnic. Tony conducts the first kayak cunic. Aus. 17 Tony conducts a second kayak clinit, and the coepany recelves $10, 569 cash. Aus. 24 oftice supplies of $1,800 purchuried on July 4 are faid in full. Sep, 1 To provide better starage of mountalo blkes and kayaks uten not in use, the conpany rents a storage shed for one year, payise $2, wie ( 3220 , pen mooth) in aovance. Stp. 21 Tony conducts a roek-c 1inbing cilintc. The conpany recelves 511,200 cash. oct. 17 Tony conducts ar orlenteer ing cilnic, Particlpants peactice how to understand a topographical map. read an aitireter. wwe a coneass, ard erlient through beavily wooded reas. The coepary recelves $17,909 cash. Dec. 1 Tany decides to hola the coepary's first adventure race on 0ecerber 15. Four-person teans will race fran checksolnt to checkyolnt using a combination of nountain bliking. kayaking. crienteering. trail running, and rock-clubbing scills. The first tean in each category to conplete all dreckpolnts in arder wins. The nitry tee tar each tean is $5 ee. Dec. 5 To help organize and pronote the race, Tony hirws his collegt rocmate, Victor, Victor wIII be pald 35 in salary tor each tean that corpetes in the roce. Mas salary will be pald after the ruce. Dec. 8 the coepary pays $1,200 to purchase a peritt fron a state perk biere the rabe wly be held. The anount is recorited as a Mise llariects experae. Dec. 12 The conpany purchases racing supplles for $2, ace on account due in 30 days. Supplles Include treptiles for the top-fjedating teass in esich catesory. pronuticnal shirts, snock foods and driniss for porticipants, ove 4 reld mikers to prepare the racecourse. Dec. 15. The coepany recelves 520,600 cash froe o fotal at furty teans, and the race is held. Dec. 16 The conpany poys victor's salary of 52,066. Dec. 31 . The coppany poys a dividered of sa, 000,62,600 te Tony and 52,000 to suzte). Dec. 31 using his personal money, Tony puichases a dianona ring far 54 , sev. Tony surprises Surle by proposing that they get married. Suzie accepts and they ges marriedt The following information relates to yeor-end odjusting entries os of December 31,2021 . 0. Depreciation of the mountain bikes purchssed on July 8 and ksyoks purchosed on August 4 totals $8,000. b. Six months' of the one year insurance policy purchased on July 1 has expired. c. Four montha of the one-year rental agreement purchased on September 1 has expired. d. Of the $1,800 of otfice supplies purchosed on July 4,$300 remains. e. Interest expense on the $30,000 loen obtoined from the city council on August 1 should be recorded. f. Of the 52.800 of rocing supplies purchased on December 12;$200 remains. 9 Suzie calculotes that the compony owes $14,000 in income taves. 1. Record each of the transactions listed above in the 'General Journal' tab (these are shown as items 127 ). 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 28-34). 3. Review the adjusted 'Trial Balance' as of December 31, 2021. 4. Prepare an income statement for the period ended December 31, 2021, in the 'Income Statement' tab. 5. Prepare a statement of stockholder's equity for the period ended December 31,2021 , in the 'Statement of Stockholder's Equity' tab. 6. Prepare a classified balance sheet as of December 31,2021 in the 'Balance Sheet' tab. 7. Record the closing entries in the 'General Journal' tab (these are shown as items 35-37). Tony and Suzie groduste from college in Moy 2021 and begin developing their new business. They begin by offering clinics for basic outdoor sctivities such as mountsin biking or koyaking. Upon developing s customer bose, they'll hold their first adventure races. These roces will inwolve four-person teams that roce from one checkpoint to the next using a combination of ksyoking, mountain bituing, orienteering, and troil running. In the long run, they plon to sell outdoor geor and develop o ropes course for ousdoor enthusiosts. On July 1, 2021, Tony and Suzie organize their new company as a corporation, Greot Adventures inc. The orticles of incorporasion state that the corporation will sell 20,000 shores of common stock for $1 each. Each shore of stock represents a unit of ownership. Tony and Suzie will oct as co-presidents of the company. The following transoctions occur from July 1 through December 31. Ju1. 1 Sell s10,000 of conon stock to Suzle. Jul. I Sell ste, 600 of concon stodk to Tary. Jul. I Purclase a one-year insurance policy for $4,800 (\$40e per nonth) to cover injurles to participants doring outdoon cilinics. Jul. 2 pay legal tees of \$1,50e associated with incorporation. Jul. 4 Purclave office suppiles of 51 , 960 on account. Jul. 7. Pay for advertising of $100 to a local newspoper for an ypconing mointain biking clinic to be held on July 15. Attendeens will be charged $50 on the day of the clinic. 3ul. B Purchase 10 mwantain blies, paying $12,000 cash. Jol. 15 on the day of the clinlc, Great Adventures recelves cash of 32,ee0 frun 4e bikers. Tory conducts the mountain bling cilnic. Jut, 22 Decouse of the succeis of the flest noaitaln biking clinic, Tony holds another nountain: bliking clinic and the coepaily recelves $2,300. 3ul. 24 Pay \$7oe to a local rauto station tor advertising to appear imediately. A kayaking clinic. w111 be held on August 19, and attendees can pay 3100 in advance or s1se on the day of the clinic. 3ut. 3e Great Adventures recelves cash of $4,400 in advarice fron 40 kayakers for the upcaning kayak clinte. Aus- 1 Ereat Adventures obtains a $30,080 low-1nterest loan for the corpary tran the city council, mich has recently passed an initlative encouraging business developoent related to outdoor activities. The loan is tue in thren years. and 6x annual interest is due each year on July 31. Aug. 4 The comary purchases 14 kayaks, paydrs $28,000 caih. Aus. 10. Thenty additional hayakers play s3, 009 ( 315e, esch), In adoitlon to the 54,600 that was paid in advarce on July 3e, on the iloy of the cilnic. Tony conducts the first kayak cunic. Aus. 17 Tony conducts a second kayak clinit, and the coepany recelves $10, 569 cash. Aus. 24 oftice supplies of $1,800 purchuried on July 4 are faid in full. Sep, 1 To provide better starage of mountalo blkes and kayaks uten not in use, the conpany rents a storage shed for one year, payise $2, wie ( 3220 , pen mooth) in aovance. Stp. 21 Tony conducts a roek-c 1inbing cilintc. The conpany recelves 511,200 cash. oct. 17 Tony conducts ar orlenteer ing cilnic, Particlpants peactice how to understand a topographical map. read an aitireter. wwe a coneass, ard erlient through beavily wooded reas. The coepary recelves $17,909 cash. Dec. 1 Tany decides to hola the coepary's first adventure race on 0ecerber 15. Four-person teans will race fran checksolnt to checkyolnt using a combination of nountain bliking. kayaking. crienteering. trail running, and rock-clubbing scills. The first tean in each category to conplete all dreckpolnts in arder wins. The nitry tee tar each tean is $5 ee. Dec. 5 To help organize and pronote the race, Tony hirws his collegt rocmate, Victor, Victor wIII be pald 35 in salary tor each tean that corpetes in the roce. Mas salary will be pald after the ruce. Dec. 8 the coepary pays $1,200 to purchase a peritt fron a state perk biere the rabe wly be held. The anount is recorited as a Mise llariects experae. Dec. 12 The conpany purchases racing supplles for $2, ace on account due in 30 days. Supplles Include treptiles for the top-fjedating teass in esich catesory. pronuticnal shirts, snock foods and driniss for porticipants, ove 4 reld mikers to prepare the racecourse. Dec. 15. The coepany recelves 520,600 cash froe o fotal at furty teans, and the race is held. Dec. 16 The conpany poys victor's salary of 52,066. Dec. 31 . The coppany poys a dividered of sa, 000,62,600 te Tony and 52,000 to suzte). Dec. 31 using his personal money, Tony puichases a dianona ring far 54 , sev. Tony surprises Surle by proposing that they get married. Suzie accepts and they ges marriedt The following information relates to yeor-end odjusting entries os of December 31,2021 . 0. Depreciation of the mountain bikes purchssed on July 8 and ksyoks purchosed on August 4 totals $8,000. b. Six months' of the one year insurance policy purchased on July 1 has expired. c. Four montha of the one-year rental agreement purchased on September 1 has expired. d. Of the $1,800 of otfice supplies purchosed on July 4,$300 remains. e. Interest expense on the $30,000 loen obtoined from the city council on August 1 should be recorded. f. Of the 52.800 of rocing supplies purchased on December 12;$200 remains. 9 Suzie calculotes that the compony owes $14,000 in income taves. 1. Record each of the transactions listed above in the 'General Journal' tab (these are shown as items 127 ). 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 28-34). 3. Review the adjusted 'Trial Balance' as of December 31, 2021. 4. Prepare an income statement for the period ended December 31, 2021, in the 'Income Statement' tab. 5. Prepare a statement of stockholder's equity for the period ended December 31,2021 , in the 'Statement of Stockholder's Equity' tab. 6. Prepare a classified balance sheet as of December 31,2021 in the 'Balance Sheet' tab. 7. Record the closing entries in the 'General Journal' tab (these are shown as items 35-37)