Tony and Suzle graduate from college in May 2021 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, 2021, Tony and Suzie organize their new company as a corporation, Great Adventures Inc. 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 transactions occur from July 1 through December 31. Jul. I sell $19,000 of common stock to Suzie. 1 Sell $19,000 of common stock to Tony. Jul. 1 Purchase a one-year insurance policy for $5,520 ($460 per month) to cover injuries to participants during outdoor clinics. Jul. 2 Pay legal fees of $1,300 associated with incorporation. 4 Purchase office supplies of $1,200 on account. Jal. 7 Pay for advertising of $310 to a local newspaper for an upcoming mountain biking clinic to be held on July 15. Attendees will be charged $50 on the day of the clinic. Jul. B Purchase 10 mountain bikes, paying $13,000 cash. Jul. 15 On the day of the clinic, Great Adventures receives cash of $3,000 from 60 bikers. Tony conducts the mountain biking alinie. Jul. 22 Because of the success of the first mountain biking clinic, Tony holds another mountain biking clinic and the company receives $3,500. Jul. 24 Pay $830 to a local radio station for advertising to appear immediately. A kayaking clinic will be held on August 10, and attendees can pay $140 in advance or $190 on the day of the clinic. Jul. 30 Great Adventures receives cash of $8,400 in advance from 60 kayakers for the upcoming kayak clinic. Aug. 1 Great Adventures obtain a $30,000 low-interest loan for the company from the city council, which has recently passed an initiative encouraging business development related to outdoor activities. The loan is due in three years, and 64 annual interest is due each year on July 31. Aug. 4 The company purchases 14 kayaks, paying $22,500 canh Aug. 10 Twenty additional kayakers pay $3,800 ($190 each), in addition to the $8,400 that was paid in advance on July 30, on the day of the elinie. Tony conducts the first kayak alinie. ect #10 Saved 1 1 Ask Dee. 30, on the day of the elinie. Tony conducts the first kayak clinic. Aug. 17 Tony conducta a second kayak clinic, and the company receives $12,000 cash. Aug. 24 Office supplies of $1,200 purchased on July 4 are paid in full. Sep. 1 To provide better storage of mountain bikes and kayake when not in use, the company renta a storage shed for one year, paying $4,560 ($380 per month) in advance. Sep. 21 Tony conducta a rock-climbing clinic. The company receives $14,100 cash. Oct. 17 Tony conducts an orienteering elinie. Participanta practice how to understand a topographical map, read an altimeter, wo a compans, and orient through heavily wooded areas. The company receives $18,300 cash. Dec. 1 Tony decides 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 alls. The first team in each category to complete all checkpoints in order wine. The entry fee for each team is $660. S to help organize and promote the race, Tony hires ho college roommate, Vietor. Victor will be paid $60 in salary for each tean that competes in the race is salary will be paid after the race. Dec. & The company pays $1,000 to purchase a pornit fron a state park where the race will be held. The amount to recorded as a miscellaneous expense. Dec. 12 The company purchases racing supplies for $2,100 on account due in 30 days. Supplies include trophies for the top-finishing teams in each category, promotional shirts, snack foods and drinks for participants, and field markers to prepare the racecourse Dec. 15 The company receives $26,400 cash from a total of forty teams, and the race is held. Dec. 16 The company pays Victor's salary of $2,400. Dec. 31 The company pays a dividend of $4,600 ($2,300 to Tony and $2,300 to fuale). Dec.31 Using his personal money, Tony purchases a diamond ring for $5,000. Tony surprises Suzie by proposing that they get married. Susie accepts and they got married! The following information relates to year-end adjusting entries as of December 31, 2021. a. Depreciation of the mountain bikes purchased on July 8 and kayaks purchased on August 4 totals $7,100. 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 $1.200 of office supplies purchased on July 4, $310 remains. e. Interest expense on the $38,000 loan obtained from the city council on August 1 should be recorded. f. Of the $2,100 of racing supplies purchased on December 12, $140 remains. g. Suzie calculates that the company owes $15,000 in income taxes. 1 The following Information relates to year-end adjusting entries as of December 31, 2021. a. Depreciation of the mountain bikes purchased on July 8 and kayaks purchased on August 4 totals $7,100. 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 $1,200 of office supplies purchased on July 4, $310 remains. e. Interest expense on the $38,000 loan obtained from the city council on August 1 should be recorded. f. Of the $2,100 of racing supplies purchased on December 12, $140 remains. 9. Suzie calculates that the company owes $15,000 in Income taxes. Ask Requirement General Journal General Ledger Trial Balance Income Statement Statement of SE Balance Sheet 1. Record each of the transactions listed above in the 'General Journal' tab (these are shown as items 1 - 27). Review the General Ledger and the Trial Balancel 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). General Journal >