y and Suzie graduate from college in May 2024 and begin developing their new business. They begin by offering clinics for basic door activities such as mountain biking or kayaking. Upon developing a customer base, they'll hold their first adventure races. se races will involve four-person teams that race from one checkpoint to the next using a combination of kayaking, mountain ng, orienteering, and trail running. In the long run, they plan to sell outdoor gear and develop a ropes course for outdoor husiasts. July 1, 2024, Tony and Suzie organize their new company as a corporation, Great Adventures Incorporated The articles of orporation state that the corporation will sell 22,000 shares of common stock for $1 each. Each share of stock represents a unit of nership. Tony and Suzie will act as co-presidents of the company. The following business activities occur during July for Great rentures. Sell $11,000 of common stock to Suzie. Sell $11,000 of common stock to Tony. Purchase a one-year insurance policy for $4,200 ( $350 per month) to cover injuries to participants during outdoor clinics. Pay legal fees of $1,300 associated with incorporation. Purchase office supplies of $1,200 on account. Pay $320 to a local newspaper for advertising to appear immediately for an upcoming mountain biking clinic to be held on July 15. Attendees will be charged $40 on the day of the clinic. Purchase 10 mountain bikes, paying $10,700cash. On the day of the clinic, Great Adventures receives cash of $2,800 in total from 70 bikers. Tony and Suzie conducts the mountain biking clinic. Because of the success of the first mountain biking clinic, Tony and suzie holds another mountain biking clinic and the company receives $3,100. Pay $760 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. Great Adventures receives total cash of $6,500 in advance from 50 kayakers for the upcoming kayak clinic. following transactions occur over the remainder of 2024 . ust 1 Great Adventures obtains a $33,000 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 . The company purchases 14 kayaks, paying $16,800cash. Tony and Suzie conduct the first kayak clinic. In addition to the $6,500 that was received in advance from kayakers on July 30 , the company receives additional cash of $3,600 from twenty new kayakers on the day of the clinic. Tony and Suzie conducts a second kayak clinic, and the company receives $12,400 cash. office supplies of $1,200 purchased on July 4 are paid in full. ust 17 ust 24 tember tember 21 Tony and Suzie conduct a rock-climbing clinic. The company receives $14,000cash. ober 17 Tony and Suzie conduct 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 $18,700 cash. ember 1 Tony and Suzie decide 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 $540. ember 5 To help organize and promote the race, Tony hires his college roommate, Victor. Victor will be paid $30 in salary for each team that competes in the race. His salary will be paid after the race. ember 8 The company pays $1,800 to purchase a permit from a state park where the race will be held. The amount is recorded as a miscellaneous expense. ember 12 The company purchases racing supplies for $2,200 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. ember 15 The company receives $21,600 cash from a total of forty teams, and the race is held. ember 16 The company pays Victor's salary of $1,200. ember 31 The company pays a dividend of $3,800 ( $1,900 to Tony and $1,900 to Suzie). ember 31 Using his personal money, Tony purchases a diamond ring for $3,600. Tony surprises Suzie by proposing that they get married. Suzie accepts and they get married! following information relates to year-end adjusting entries as of December 31, 2024. Depreciation of the mountain bikes purchased on July 8 and kayaks purchased on August 4 totals $5,500. ix months' of the one-year insurance policy purchased on July 1 has expired. cour months of the one-year rental agreement purchased on September 1 has expired. of the $1,200 of office supplies purchased on July 4,$290 remains. nterest expense on the $33,000 loan obtained from the city council on August 1 should be recorded. ff the $2,200 of racing supplies purchased on December 12,$240 remains. juzie calculates that the company owes $14,300 in income taxes. 1. Record each of the transactions listed above in the 'General Journal' tab (these are shown as items 1 to 27 ). Review the 'General Ledger' and the 'Trial Balance' 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 to 34). 3. Review the adjusted 'Trial Balance' as of December 31, 2024. 4. Prepare an income statement for the period ended December 31, 2024, in the 'Income Statement' tab. 5. Prepare a statement of stockholder's equity for the period ended December 31, 2024, in the 'Statement of Stockholder's Equity' tab. 6. Prepare a classified balance sheet as of December 31, 2024 in the 'Balance Sheet' tab. 7. Record the closing entries in the 'General Journal' tab (these are shown as items 35 to 37 ). Prepare the journal entries for transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Journal entry worksheet Note: tnter debits betore creaits. The ending balance values from the General Ledger tab flows through to the Trial Balance below. Choose the appropriate accounts to be reported on the income statement. Select the 'adjusted' from the dropdown, which will then populate the balances in those accounts from the trial balance. 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. The balance sheet is the accounting equation: Assets = Liabilities + Equity. Each asset and liability account is reported separately on the balance sheet