60.1K

Verified Solution

Link Copied!

Tony and Suzie graduate from college in May 2021 and begin developing their new business. They begin by offering clinics for basic outdoor activities such as mountain biking or kayaking. Upon developing a customer base, they'll hold their first adventure races. These races will involve four person teams that race from one 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 for outdoor enthusiasts On July 1, 2021. Tony and Suzie organize their new company as a corporation, Great Adventures inc. The articles of incorporation state that the corporation will sell 34,000 shares of common stock for $1 each Each share of stock represents a unit of ownership, Tony and Suzie will act as co presidents of the company. The following transactions occur from July 1 through December 31 1 sell $17,000 of connon stook to Sunie. Jul. 1 Bell 417,000 of connes stock to Tony. Jal. 1 Purehase a one-year in erance policy for $5,040 (8420 per month) to cover injuries to participants during outdoor clinics. Jal. 2 Pay legal fees of $1,600 associated with incorporation. Jl. Parehase office supplies of $1,800 on account. 7 Pay for advertising of 1330 to local newspaper for an upcoming mountain bikin elinie to be held on July 15. Attendees will be charged $30 on the day of the clinic. Jul. 8 Purchase 10 mountain bikes, paying $15,600 cash. Jul. 15 on the day of the elinie, Great Adventures receives cash of $2,400 from 10 bikers. Tony conduct the mountain biking elinie. Jal. 22 Decuse of the recess of the first mountain biking elinie, Tony holds another mountain biking clinic and the company receives 32,750. Jul. 24 Tay $750 to a local radio station for advertising to appear inmediately. A kayaking elinie will be held on August 10, and attendees can pay $120 in advance or $170 on the day of the elinie. Jul. 30 Great Adventures receives each of 67,200 in advance from kayakers for the upcoming kayak elinie. Aug. 1 Great Adventures obtains a 547,000 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 annual interest is due each year on July 31. Mag. The company purchases 14 kayaks, paying $22,000 cash. Aug. 10 Twenty additional kayakers pay $3,400 (5170 cach), in addition to the $7,200 that was paid in advance on July 30, on the day of the clinie. Tony conducts the first kayak elinie. Aug. 17 Tony conducta a second kayak elinie, and the company receives $12.500 cash. hug. 24 orice supplies of $1,60 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 renta storage shed for one year, paying $3,480 ($290 per month) in advance. Sep. 21 Tony conducte a rock-climbing cline. The company receives $14,800 cash. Oct. 17 Tony conducts an orienteering clinie. Participants practice how to understand a topographical map. read an altimeter, we a compass, and orient through heavily wooded areas. The company receives $19,100 cash. Dec. 1 Tony decides to hold the company's first adventure race on December 15. Four-person team will race fron checkpoint to checkpoint using a combination of mountain biking, kayaking, orienteerin trail running, and rock-climbing skills. The first tean in each category to complete all checkpoints in order wine. The entry fee for each team is $500. Dec. 5 To help organize and promote the race, Tony hires his college roommate, Victor. Vietor will be paid 530 in salary for each team that competes in the race. His salary will be paid after the race. Dee. The company pays $1,500 to purchase a permit from a state park where the race will be held. The amount to recorded as a miscellaneous expense. Dec. 12 The company purchases racing supplies for $2,100 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. Dee. 15 The company receives 620,000 cash from a total of forty team, and the race is held. Dec. 16 The company payu Vieter's salary of $1,200. Dec. 31 The company pays a dividend of 1),200 ($1,600 to Tony and $1.600 to Susie). Dec. 31 Using his personal money. Tony purchases a diamond ring for $5,000. Tony surprises Buste by proposing that they get married. Burie accepts and they get married The following information relates to year end adjusting entries as of December 31, 2021 a. Depreciation of the mountain bikes purchased on July 8 and kayaks purchased on August 4 totals $7,600. b. Six months of the one year insurance policy purchased on July 1 has expired. c. Four months of the one year rental agreement purchased on September has expired. d. Of the $1.800 of office supplies purchased on July 4, 5210 remains e. Interest expense on the $47,000 loan obtained from the city council on August 1 should be recorded f. Of the $2,300 of racing supplies purchased on December 12. $130 remains. 9. Suzie calculates that the company owes $14100 in income taxes for the top-finishing teams in each category, promotional shirts, snack foods and drinks for participants, and field markere to prepare the racecours Dec. 15 The company receives $20.000 cash from a total of forty tears, and the race is held. Dec. 16 The company pays Victor's salary of $1,200. Dec. 31 The company pays dividend of $3,200 ($1,600 to Tony and $1,600 to dusle). Dec. 31 Using his personal money. Tony purch diamond ring for $5,000. Tony surprises Suzie by pro that they get married. Sunie acepts and they get married The following information relates to year and adjusting entries as of December 31, 2021 a. Depreciation of the mountain bikes purchased on July Band kayaks purchased on August 4 totals $7.600. b. Six months of the one-year Insurance policy purchased on July 1 has expired. c. Four months of the one-year rental agreement purchased on September 1 has expired. d. Of the $1,800 of office supplies purchased on July 4, $210 remains e. Interest expense on the $47.000 loan obtained from the city council on August 1 should be recorded. f. or the $2,300 of racing supplies purchased on December 12, $130 remains. g. Suzle calculates that the company owes $14,100 in income taxes. 5. For the period July 1to December 31, 2021, prepare an income statement, statement of stockholders' equity and classif sheet Complete this question by entering your answers in the tabs below. Income Statement Stmt of Stockholders Balaksheet Equity For the period July 1 to December 31, 2021, prepare a statement of stockholders' equity. All account balances on July 1 were zero. GREAT ADVENTURES, Inc. Statement of Stockholders' Equity For the Period Ended December 31, 2021 Common Stock Retained Earnings Total Stockholders Equity Foogle Chrome Features Extensions Enterprise Required information Dec. 15 The company receives $20.000 cash from a total of forty tems, and the race la held. Dec. 16 The company pay Vietordelary of $1,200. Dee. The company ye dividend of $3.290 ($1.600 to Tony and $1,600 to Bule) Dec. 1 Using his personal money. Tony pure diamond ring for $5,000. Tony surprises Bus by proposing that they get married. Stie ce and they did The following information relates to year-end adjusting entries as of December 31, 2021 a. Depreciation of the mountain bikes purchased on Juy B and kayaks purchased on August 4 totals $7,600. b. Six months of the one year insurance policy purchased on July has expired. c. Four months of the one-year rental agreement purchased on September 1 has expired. d. Of the $1,800 of office supplies purchased on Nily 4, $210 remains e. Interest expense on the $47,000 loan obtained from the city council on August 1 should be recorded. of the $2,300 of racing supplies purchased on December 12, $130 remains g. Surle calculates that the company owes S14100 in income taxes. S. For the period July 1 to December 31, 2021, prepare an income statement, statement of stockholders' equity and classified balance sheet Complete this question by entering your answers in the tabs below. Stmt of Income Statement Stockholders Balance Sheet Equity Prepare a classified balance sheet as of December 31, 2021. (Amounts to be deducted should be indicated by a minus sign.) GREAT ADVENTURES, Ing. + December 31, 2021 Assets Liabilities Current Assets: Current Liabetes Total Current Liabilities Total Current Assets Long-term assets Total Liabilities Stockholders' Equity Total Assets Total Stockholders' Equity Total Liabilities and Stockholders' Equity Stunt of Stockholders Equity One Shot

Answer & Explanation Solved by verified expert

See Answer