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Heres the General Journal and ledgers

I am on step number 7

Record the following adjusting entries to the journal and post to the ledgers. a. Depreciation for all equipment totals $8,000. b. Six months' worth of insurance has expired. c. Four months' worth of rent has expired. d. Of the $1,800 of office supplies purchased on July 4, $300 remains. e. Interest expense on the $30,000 loan should be recorded. f. Of the $2,800 of racing supplies purchased on Dec. 12, $200 remains. g. Sarah calculates that the company owes $14,000 in income taxes. Step 7: # Account : Credit 110 Account: Prepaid Insurance Balance Debit Ref Description Date 115 Account #: Credit Account: Prepaid Rent Ref Balance 2, 400 Debit Description Storage Shed Date General Journal Page1 Post Ref 2018 Description Debit 10, 00O Credit Ommck Stock 10, 0o 2 10,000 800 ,5O0 800 200O Bikes 2,00 2d0o rvice Revenae 2s July 22n S ex vice Revenue I 7 0 0 Cash todo OeferesRcvenue NoteS patable 2 ooO 38 Page 2 General Journal Credit Debit Ref 2018 Description Auyof 2, 400 2400 12 12 13,200 15 7, 400 (7, 00 | 18 120027 2,800 30 louni 0ayabl 20.d00 33 35 Dec Gt Salary expen as ,000 39 &TAdventures Inc. Date DebitCredit Dote Debit a Creditate Debitate Credit Date ebitate Credit Prepaid Storage rent Supplies (Office) Prepaid Insurance Op bal 9,00004-Aug 28,000 Op ba 30,000 24-Aug1,800 Op bal ,800 Op bal 4,800 01-Aug 10Au8 10,500164,000 01-5ep 2.400 3,00001-5ep 10,50008-Dec 13,20016-Dec 17,90031-Dec 20,000 2,400 1,200 2,000 17-Aug 21-Sep 17-Oct 15-Dec 64,200 2,400 1,800 4,800 Equipment (Bikes Accum. Depreciation Equipment (Kayaks Supplies (Racing Op bal 4-Aug28,000 2-De2,800 12,000 28,000 Accounts Payable 1,800 Op bal Common Stock Op bal 6% 3 year loan Payable Deferred Revenue 01-Aug 30,00010-Aug 4,000 Op ba 1,800 2,800 12-Dec 2,800 20,000 0,000 Service revenue inic) Service revenue (Racing Advertising expense Legal feesexpense 4,300 0 Aug7,000 Aug 10,500 1-ep13,200 17-Oct17,900 Op bal Op bal 5-Dec 20,000 Op bal 31-Dec 31-Dec 31-Dec 31-Dec Bal 2,900 20,000 Ba ,000 Bal 1,500 Salary expense 2,000 Misc expense 16 Dec 31-Dec 08-Dec1,200 31 Dec 31 Dec 31 Dec 4,000 1,200 2,000 S & T Adventures, Incorporated Tommy have graduated and want to start their own outdoor activities business. They plan to focus on biking and kayaking for the first three year and then evaluate for growth. Their articles of incorporation state that the corporation will sell 20,000 shares of common stock for $1.00 each. The following are their transactions for July 2018. July Sell $10,000 of common stock to Sarah. July Sell S10,000 of common stock to Tommy Julyl Purchase a once-year insurance policy for $4,800 to cover the business. July 2 Pay legal fees of $1,500 associated with incorporation. July 4 Purchase office supplies of $1,800 on account.o es July 7 Pay for advertising of $300 to a local paper for July Clinic. July 8 Purchase 10 mountain bikes, paid S12,000 cash. July 15 On the day of the clinic, 40 bikers paid a total of $2,000. Tommy conducted the clinic. July 22 A second clinic is offered and earned $2,300 in cash for S &T Adventures. July 24 Paid $700 to a local radio station for advertising for a kayaking clinic to be held in August. 40 kayakers pay a total of $4,000 for the August 10th Kayaking Clinic. (hint: this is being paid in advance of the activity) - July 30 Step 1: Record the transactions in the General Journal. Step 2: Post the information from the General Journal to the Ledgers. Step 3: Create a Trial Balance for the month of July. (Check figure: Trial Balance should be $30,100) Step4: Continue on with the rest of 2018 transactions S&T Adventures obtains a $30,000 loan, due in three years with a 6% interest rate. The company purchases 14 Kayaks, paying $28,000 in cash. Kayaking Clinic - Received $3,000 in cash, in addition to the $4,000 prepaid on July 30th. Aug 1 Aug 4 -Aug 10 Aug 17 Tommy offers a second Kayaking Clinic and the company receives $10,500 cash. Aug 24 Office supplies of $1,800 purchased on July 4 are paid in full. Sep. 1 The company rents a storage shed for one year, paid $2,400 in advance. Sep. 21 The company receives $13,200 cash for a clinic. Oct. 17 The company receives $17,900 cash for a clinic. Dec. 1 Tommy decides to hold an adventure race on Dec. 15th. Four-person teams will race frorm checkpoint to checkpoint. The entry fee for each team is $500. Tommy hires Victor to promote the race. Victor will be paid $50 in salary for every team that completes. His salary will be paid after the race. The company pays $1,200 to purchase a permit to use a state park for the race. (Mise. Exp) The company purchases racing supplies for $2,800 on account due in 30 days. A total of 40 teams sign up and the company receives $20,000 cash and the race is held Victor is paid $2,000 for his salary The company pays dividends of $4,000. ($2000 to Sarah and $2000 to Tommy) Dec. 5 Dec. 8 Dec. 12 Dec. 15 Dec. 16 Dec. 31 Step 5: Record the transactions in the General Journal. Step 6: Post the information from the General Jouranl to the Ledgers Step 7: Record the following adjusting entries to the journal and post to the ledgers. a. Depreciation for all equipment totals $8,000 b. Six months' worth of insurance has expired. c. Four months' worth of rent has expired d. Of the $1,800 of office supplies purchased on July 4, $300 remains. e. Interest expense on the $30,000 loan should be recorded. f. Of the $2,800 of racing supplies purchased on Dec. 12, $200 remains. & Sarah calculates that the company owes $14,000 in income taxes. Step 8: Prepare an Adjusted Trial Balance. Step 9: Prepare the financial statements. Step 10: Journalize all Closing Entries and post results to Ledgers. Step 11: Prepare the Post-Closing Trial Balance. EXPENSES OWNER'S EQUITY 300 Common Stock 310 Retained Earnings 320 Dividends 500 Advertising Expense 505 Depreciation Expense 510 Income Tax Expense 515 Insurance Expense 520 Interest Expense 525 Legal Fees Expense 530 Miscellaneous Expense 535 Rent Expense 540 Salaries Expense 545 Supplies Expense-Office 550 Supplies Expense-Racing 100 Cash 110 Prepaid Insurance 115 Prepaid Rent 120 Supplies (Office) 125 Supplies (Racing) 130 Equipment (Bikes) 135 Equipment (Kayaks) 140 Accumulated Depr REVENUE 400 Service Revenue (Clinic) 410 Service Revenue (Racing) LIABILITIES 200 Accounts Payable 210 Deferred Revenuc 220 Income Tax Payable 230 Interest Payable 240 Notes Payable

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