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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

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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 enthuslasts. On July 1, 2021, Tony and Suzie organize their new company as a corporation, Great Adventures Inc. The articies of incorporation state that the corporation will sell 20,000 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 . Jal. 1 Sell $10,000 of common atock to sunio. Ju1. 1 Sell $10,000 of common stock to Tony. Jul. I Purchase a one-year insurance policy for $4,800 (\$400 per month) to cover injuries to participants during outdoor elinics. Jul. 2 Pay logal tees of $1,500 annociated with incorporation. Ju1. 4 Purchase of 1 ice supplien of $1,400 on mecount. Jul. 7 Pay for advertising of $300 to a local newspaper for an upoonibg aountaln biking elinie to be held on July 15. Attendees vili be charged 550 on the day of the elinie. Jul. 8 Purchase 10 nountain bikes, paying $12,000 canh. Jul. 15 on the day of the olinic, Grent Adventure receiven eash of $2,000 from 40 bikers. Tony conducta the mountain biking elinic. Jul. 22 Because of the auccess of the Iirst mountain biking olinic, Tony bolds another nountain biking elinie and the conpany receiven $2,300. Jul. 24 Pay $700 to a local radio atation for advertioing to appear inmediately. a kayaking elinie vill be beld on Aagust 10 , and attendees oan pay $100 in advance or $150 on the day of the elinie. Jul. 30 Great Adventures recelves canh of 54,000 in advance fron 40 kayakers for the upcoming kayak clinie. Aug. I Great Adventures obtains a $30,000 low-interest loan for the company from the elty counell, which han recently passed an initiative encouraging busisess developnent related to outdoor activities. The loan in due in three years, and 6R annual interest is due eacb year on Jaly 31 . Aug. 4 the eonpsny purchanes 14 kayaks, paying $28,000 eanh. Aug. 10 Twenty additional kayakers pay 53,000 ( $150 each), in addition too the 54,000 that vas paid in advance on July 30, on the day of the elinie. Tony condocts the first kayak elinie. Aag. 17 Tony condueta a socond kayak olinic, and the coepany receives $10,500 cash. Aug. 24 office nupplies of $1, 800 purebased on July 4 ore paid in full. Sep. I To provide better atorage of nountain bikes and kayaks when aot in use, the corpany reata a atorage shed for one year, paying $2,400 ( $200 per month) in advance. Sop. 21 sony cosducte a rock-climbing olinie. The company receives $13,200 caah. Oot. 17 Tony conducts an orienteering elinie. Tartieipanta practice how to underatand a topographieal map, read an altineter, use a conpess, and orient throogh beavily vooded areas. The company recelvea $17,900 cash. Dec. I Fony decides to hold the conpany's firut sdventure race on December 15. Tour-person teanu vil1 race from cheokpoint to cheokpoint using a coobination of hountain biking, kayaking, orienteering, trail runsing, and roek-clinbing aki11s. The firat tean in each category to coaplete all eheckpointa in order wins. The entry fee tor esch tean in $500. Dec. 5 ro help organize and promote the race, Tony hires his college roomate, victor. Victor vill be paid \$50 in ealary for each tean that competes in the race. Mis salary vill be paid after the race. Deo. B The oonpany payo $1,200 to purchase a pernit fron a atate park where the race vili be bold. The aesount is recorded an a miscellaneous expense. Dee. 12 The company purchases raeing supplies tor 52,100 on account dee in 10 days. Supplies inelede trophien for the top-finishing teans in each category, promotional whirts, wnack toods abd drinki for partioipants, and field markera to prepare the racecouree. Dec. 15 the canpany recelves $20,000 eash froe a total of forty teata, and the race in beld. Dec. 16 The conpany pays victor's solary of $2,000. Dec. 31 The company pays a dividend of $4,000($2,000 to Tony and 52,000 to 50=16). bec. 31 Uaing hi personal poney, Tony purchasea a dianond ring tor 54,500 . Fony aurprimea sunie by propeaing that they get married. Suzie aceepta and they get marriedl 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 $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 Ishould be recorded. f. Or the $2,800 of racing supplles purchased on December 12,$200 remains. g. Suzle caiculates that the company owes $14,000 in income taxes. 1. Record transactions from July 1 through December 31, (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) 2. Record adjusting entries as of December 31, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 3. Post transactions from July 1 through December 31 and adjusting entries on December 31 to T-accounts. 4. Prepare an adjusted trial balance as of December 31, 2021 . 5. For the period July 1 to December 31,2021 , prepare an income statement, statement of stockholders' equity and classified balance sheet

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