We've Got Wheels, Inc. (Wheels) was formed on April 1, 2010 by two university friends who thought they could make money renting bikes and inline skates to visitors at a busy lake-front area near their homes. The friends thought the business would be a good way to spend their summer near the beach while making enough money to finance next year's university costs. If the business is successful the friends hope to operate it for as long as they attend university. The two owners closed down Wheels for the year after the Labour Day weekend. It as a very hectic summer and they didn't have nearly as much time to have fun as they thought they would. They were also so busy that they didn't pay much attention to keeping any accounting records. They did, however, keep all the receipts, invoices, and deposit slips that accumulated over the summer. It is now September 10. The owners have asked you to compile useful information about Wheels for them. After summarizing the data they provided, you have the following information for the summer of 2010: 1. During the summer: Purchased 19 new and used bicycles for a total of $6,750. Wheels agreed to pay $3,150 immediately and the remainder on September 30, 2010. The owners think the bikes will last for at least four years, after which time they will no longer useful for the business. 2. During the summer: Obtained a permit to operate the business at the lake for next two years. The cost of the permit was $250. 3. During the summer: Purchased packaged snacks for $1,100 cash. At the end of the summer there were $315 of snacks left over. The snacks were sold to customers through the summer for $1,470 cash. 4. During the summer: Purchased advertising on a local radio station. Advertising was paid for by cheque once an ad was played. Total amount spent during the summer was $765. Nothing was owed at the end of the Labour Day weekend. 5. During the summer: Wheels provided inline skating lessons to children on behalf of the local Parks and Recreation Department. Wheels billed the department $4,875 for the lessons. As of September 10, $1,255 was still owed to Wheels. The amount owed is due on October 15. 6. During the summer. The owners took $2,570 each to meet their personal needs. Required: Prepare all necessary journal and adjusting entries until December 31, 2010