VERWIN oject - Worth 22 points Saved Jul. 1 Sell $13,000 of common stock to Suzie. Jul. 1 Sell $13,000 of common stock to Tony. Jul. 1 Purchase a one-year insurance policy for $3,680 ($300 per month)' to cover injuries to participants during outdoor clinics. Jul. 2 Pay legal fees of $1,800 associated with incorporation. Jul. 4 Purchase office supplies of $2,899 on account. Jul. 7 Pay for advertising of $240 to a local newspaper for an upcoming mountain biking clinic to be held on July 15. Attendees will be charged $40 on the day of the clinic. Jul. 8 Purchase 10 mountain bikes, paying $13,200 cash. Jul. 15 On the day of the clinic, Great Adventures receives cash of $2,000 from 50 bikers. Tony conducts the mountain biking clinic. Jul. 22 Because of the success of the first mountain biking clinic, Tony holds another mountain biking clinic and the company receives $2,600. Jul. 24 Pay $800 to a local radio station for advertising to appear immediately. A kayaking clinic will be held on August 10, and attendees can pay $130 in advance or $180 on the day of the clinic. Jul. 30 Great Adventures receives cash of $7,800 in advance from 60 kayakers for the upconing kayak clinic. Aug. 1 Great Adventures obtains a $36,000 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 6% annual interest is due each year on July 31. Aug. 4 The company purchases 14 kayaks, paying $19,600 cash. Aug. 10 Twenty additional kayakers pay $3,600 ($180 each), in addition to the $7,800 that was paid in advance on July 30, on the day of the clinic. Tony conducts the first kayak clinic. Aug. 17 Tony conducts a second kayak clinic, and the company receives $12,300 cash. Aug. 24 Office Supplies of $2,000 purchased on July 4 are paid in full. Sep. 1 To provide better storage of mountain bikes and kayaks when not in use, the company rents a storage shed for one year, paying $2,520 (5210 per month) in advance. Sep. 21 Tony conducts a rock-climbing clinic. The company receives $14,200 cash. Oct. 17 Tony conducts an orienteering clinic. Participants practice how to understand a topographical map, read an altimeter, use a compass, and orient through heavily wooded areas. The company receives $19,500 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 skills. The first team in each category to complete all checkpoints in order wins. The entry fee for each team is $660. Dec. 15 To help organize and promote the race, Tony hires his collage roomate, victor, Victor will be paid $60 in ulary for each team that competes in the race. His salary will be paid after the race. Dec 8 The company pays $1,200 to purchase a permit from a state park where the race will be held. The annount is recorded as a miscellaneous expense. Dec 12 The conpany purchases racing supplies for $2,50 on account due in 30 days. Suvelles include trophies for the top-finishing teams in each category, prenotional shirts, snack foods and drinks for participants, and field markers to prepare the racecourse. Dec. 15 The conpany 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 $4,100 ($2,ese to Tony and $2,ese to Suzie) Dec. 31 Using his personal money, Tony purchases a diamond ring for 14.000 Tory surprises sure 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, 2021 . Depreciation of the mountain bikes purchased on July and kayaks purchased on August 4 total $8,500 b. So months of the one year neurance policy purchased on Ny i has expired. Four months of the one year rental agreement purchased on September has expired d. Of the $2,000 of office supplies purchased on July 4, $280 remains. e. Interest expense on the $36.000 loan obtained from the cty council on August 1 should be recorded. + Of the $2.500 of racing supplies purchased on December 12 $240 reping 9. Suzle calculates that the company owes $13,500 in income taxes Great Adventures Problem AP3-1 Part 7 7. Pout the closing entries of retained earings to the account ul. 1 all $11, of corom stock to Suzie. ul. 1 Sell $13, of common stock to Tomy. Jul. 1 Purchase a one-year Insurance policy for $3,6 (5300 per month) to cover injuries to partidpants during outdoor clinics. Jul. 2 Pay legal fees of $1,2 associated with incorporation Jul. 4 Purchase office supplies of $2,000 on account Jul. 7 Pay for advertising of 3248 to a local newspaper for an upcoming mountain biking clinic to be held on July 15. Attendees will be charged 340 on the day of the clinic Jul. Purchase 10 mountain bikes, paying $13,200 cash. Jul. is on the day of the clinic, Great Adventures receives cash of 12,000 from se bikers. Tony conducts the mountain biking clinic. Jul. 22 Because of the success of the first mountain biking clinic, Tony holds another mountain biking clinic and the company receives 52,6ee. Jul. 24 Pay 500 to a local radio station for advertising to appear inmediately. A kayaking clinic ll be held on August 10, and attendees gan pay $12 in advance or on the day of the clinic. Jul. 30 Great Adventures receives cash of $7,00 in advance from 60 kayakers for the upcoming kayak clinic 1 Great Adventures obtains a $6,000 low-1nterest 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 ol annual interest is due each year on July 31. Aug. The company purchases 14 kayaks, paying $19,600 cash. Aug. 10 Twenty additional kayakers pay $3,600 (5180 each), in addition to the $7, that was paid in advance on July 3e, on the day of the clinic. Tony conducts the first kayak clinic Aug - 17 Tony conducts a second kayak clinic, and the corpany receives $12,00 cash. Aug 24 Office supplies of 32, purchased on July 4 are paid in full. Sep 1 To provide better storage al mountain bikes and kayaks when not in ise, the company rents a storage shed for one year, paying 32,520 (521e por nanth) in advance Sep 21 Tony conducts a rock climbing clinic. The company receives $14,220 cash. Oct. 17 Tany conducts an orienteering clinic. Participants practice how to understand a topographical map, read an altimeter, use a compass, and orient through heavily wooded area. The company receives $19,50 cash. DEE. Tony decides to hold the carpany's first adventure race on December 15. Four person tears will race from checkpoint to checkpoint using a cortination of mountain biking Kayaking. orienteering trail running and rock climbing skills. The first team in each category to complete all checkpoints in order wins. The entry fee for each team 15 6 . bec. S to help organize and promote the race, Tony hires his college roommate Victor Victor be paid in salary for each tear that competes in the race. I salary will be paid after the race the company pays $1,e to purchase peme POS state part where the race will be held. The amount 15 recorded as miscellaneous expense. Dec 12 The company purchases racing supplies for $2.00 on account due in S olies roothes for the top atsing on in each category. Dromotional Shri Shack foods and drinks for participants and told markers to prepare the racecourse. Les the company receives 25 cash from a total of Forty tears, and the race 15 hele. pa e company pays victors salary of 1,400 Dec 11 the company pays dividend of 14,100 (52, to Tony and toile U s ing his personal money. Tony purchases diamond ring pris e by proosing that they get married. Si accet t hey get married The foowing information to e ngra n ces 1. tptent when puro U -1011 m ontre ce cosy cestorwe eie ertured brat 000 PP y en prite 5.99 Ons rec ur s o. bet cordes