Tony and Suzie graduate from college in May 2018 and begindeveloping their new business. They begin by offering clinics forbasic outdoor activities such as mountain biking or kayaking. Upondeveloping a customer base, they’ll hold their first adventureraces. These races will involve four-person teams that race fromone checkpoint to the next using a combination of kayaking,mountain biking, orienteering, and trail running. In the long run,they plan to sell outdoor gear and develop a ropes course foroutdoor enthusiasts.
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On July 1, 2018, Tony and Suzie organize their new company as acorporation, Great Adventures Inc. The articles of incorporationstate that the corporation will sell 20,000 shares of common stockfor $1 each. Each share of stock represents a unit of ownership.Tony and Suzie will act as co-presidents of the company. Thefollowing business activities occur during July for GreatAdventures.
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Jul. 1 Sell $10,000 of common stock to Suzie.
Jul. 1 Sell $10,000 of common stock to Tony.
Jul. 1 Purchase a one-year insurance policy for $4,200 ($350 permonth) to cover injuries to participants during outdoorclinics.
Jul. 2 Pay legal fees of $1,100 associated withincorporation.
Jul. 4 Purchase office supplies of $1,300 on account.
Jul. 7 Pay for advertising of $370 to a local newspaper for anupcoming mountain biking clinic to be held on July 15. Attendeeswill be charged $60 the day of the clinic.
Jul. 8 Â Â Purchase 10 mountain bikes, paying $11,200cash.
Jul. 15 On the day of the clinic, Great Adventures receives cash of$3,600 from 60 bikers. Tony conducts the mountain bikingclinic.
Jul. 22 Because of the success of the first mountain biking clinic,Tony holds another mountain biking clinic and the company receives$4,150.
Jul. 24 Pay for advertising of $840 to a local radio station for akayaking clinic to be held on August 10. Attendees can pay $120 inadvance or $170 on the day of the clinic.
Jul. 30 Great Adventures receives cash of $8,400 in advance from 70kayakers for the upcoming kayak clinic.
1. Record each transaction in July. (Ifno entry is required for a transaction/event, select "No journalentry required" in the first account field.)
| Date | General Journal | Debit | Credit |
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| July 01, 2018 | | | |
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