Torty and Suzie grabvate from college in May 2024 and begn developing their new business. They begin by offering cinics for basic outdoor activities such as mountain biking or kayakng. Upon developing a customer base, they hold their first advernture races. These taces will involve four-person teams that toce from one checkpoint to the next using a combination of kayaking, mountain bikeng. orienteenng, and trall running. In the lony nun, they plan to sell ouldoor gear and develop a fopes course for outidoor enthusiasts. On fity 1,2024, Tony and Surzie organize their new company as a corporation, Great Adventures incorporated The articles of incorporation state that the corporation witt sel 32,000 shares of common stock for $1 each. Each share of stock represents a unit of ownershe. Tony and Suzie wil act as co presicents of the company The lollowing business activties occur during July for Great Adventures. July 1 Sell 110,60 of comen stock to Surie: clinick. Fay lest feet of $1,5ee assaciated with incarparation. hurchale office supelies of $1, gee an actaunt. Burchese 10 movitain blies, perine $12,000 cash. oountein bivine elinic. trin is 3 bion. December 5 To help organize and promote the race, Tony hires his college rocmate, victor. Victor will be paid $50 in salary for each tean that conpetes in the race. His salary will be paid after the race. Decenber 8 The company pays $1,200 to purchase a permit from a state park where the race will be held. The anount is recorded as a niscellaneous expense. Decenber 12 The company purchases racing supplles for $2,800 on account due in 30 days. Supplies include trophies for the topfinishing teans in each category, pronotional shirts, snack foods and drinks for participants, and field markers to prepare the racecourse. December 15 The company receives $20,600 cash from a total of forty teans, and the race is held. Deceaber 16 The company pays Victor's salary of $2,000. December 31 The company pays a dividend of $4,000 ( $2,009 to Tony and $2,000 ta Suzie). Decenber 31 Using his persanal maney, Tony purchases 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. Or the $2,800 of racing supplies purchased on December 12,$200 remains. 9. Suzie calculates that the company owes $14,000 in income taxes: Choose the appropriate accounts to be reported on the income statement. Solect 'Adjusted' from the dropdown, which will then populate the balances in those accounts from the trial balance. 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 month' 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 9. Suzie calculates that the company owes $14,000 in income taxes. Using the dropdown buttons, select the item that accurately describes the values that either increase or decrease the balance indicated. Select 'Adjusted' from the dropdown, which will then populate the balances in those accounts from the trial balance. Post-closing Statement of SE
