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Tony and Suzie graduate from college in May 2024 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, 2024, Tony and Suzie organize their new company as a corporation, Great Adventures incorporated. The articles of incorporation state that the corporation will sell 20,000 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 business activities occur during July for Great Adventures. July 1 sel1 $10,000 of cormon stoek to suzie. Jaly 1 sel1 $10,000 of common stock to Tony. July 1 Purchase a one-year insurance policy for $4,800 (\$400 per month) to cover injurien to partieipanta during outdoor clinies. July 2 Pay legal fees of $1,500 associated with Incorporation. July 4 Purehase of f ce supplies of $1,800 on account. July 7 Pay $300 to a local newspaper for advertining to appear lmtediately for an upeoming mountain biking elinie to be held on July 15 . Attendees wil1 be eharged $50 the day of the elinie. July 8 Purchase 10 mountain bikes, paying $12,000 cash. July 15 On the day of the elinie, Great Adventures receives cash of $2,000 from 40 bikera. Tony conducts the meuntain biking elinie. July 22 Because of the success of the first mountain biking clinie, Tony holds another mountain biking elinie, and the company receiven $2,300. July 24 Pay $700 to a local radio ntation for advertining to appear immediately. A kayaking elinie wili be held on August 10 , and attendees ean pay $100 in advance or $150 on the day of the elinic. July 30 Great Adventures receives total canh of $4,000 in advance from 40 kayakers for the upcoming kayak clinie. The following transactions occur over the remainder of 2024. Augast 1 Great Adventures obtains a $30,000 Jow-interest loan for the cospany fron the city couneil, which has recent.ly passed an initiative encouraging business developenent related to outdoor activities. The loan is due in three years, and 6t annual interest is due each year on July 31. August 4 The company purchasen 14 kayaks, paylng $28,000 cash. August 10 Twenty additional kayakera pay $3,000 (\$150 each), in addition to the $4,000 chat was paid in advance on July 30 , on the day of the elinie. Tony conductif the fixbt kayak olinio. August 17 Tony conducts a second kayak elinie, and the company receives $10,500 in cash. Auguet 24 of fice supplies of $1,800 purchased on July 4 are paid in full. September 1 To provide better storage of mountain bikes and kayaks when not in use, the conpany rents a ntorage thed for one year, paying 52,400 (\$200 per month) in advanee. Septeaber 21 Tony conduets a rock-climbing elinie, The conpany recelves 513,200 call. oetober 17 Tony conducts an orienteering elinie. Partielpants practice hoy to undorstand a topographical map, read an altimeter, use a compass, and orient through heavily frooded areas. The company receiven 517,900 eash. Deoember 1 Tony deoldes to hold the eompany"a firat adventure race gn December 15. rour-peraon teams wil race from cheekpoint to ebeckpoint using a coebination of mountain biking, kayaking, orienteering, trafl running, and roek-climbing akilla. The first team in each category to complete al1 checkpoints in order wins. The entry fee for each team is 5500. beeember 5 To help organize and promote the race, Tony hires his college roomate, victor. Victor will be paid $50in malary for each team that competes in the race. His salary will be paid after the race. December 8 The conpany pays $1,200 to purchase a pernit fron a ntate park where the race will be held. The amount in recorded as a mincellaneous expense. December 12 The conpany purchases racing supplies for $2,800 on account due in 30 days. 5upplies inelude. trophies for the top-fininhing teams in each category, promotional shirts, snack foods and drinks for participants, and field markers to prepare the racecourse. December 15 The company receiven $20,000 cash from a total of forty teans, and the race is held. December 16 The company pays Vietor"m salary of $2,000. December 31 The company pays a dividend of $4,000($2,000 to Fony and $2,000 to 50z10). December 31 Using his personal money, Tony purchases a diamond ring for 54,500 . Tony surprises 5 uzie by proposing that they get married. Suzie accepti and they get married: The following information relates to year-end adjusting entries as of December 31, 2024. a. Depreciation of the mountain bikes purchased on July 8 and kayaks purchased on August 4 totals $8,000. 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,$300 remains. e. Interest expense on the $30,000 loan obtained from the city council on August 1 should be recorded. f. Of the $2,8,0 of racing supplies purchased on December 12,$200 remains. 9. Suzie calcufates that the company owes $14,000 in income taxes. Prepare an adjusted trial balance as of December 31, 2024. Accounts Payable Income Tax Payable Interest Payable Notes Payable Common Stock Dividends Service Revenue (Clinic) Service Revenue (Racing) Advertising Expense Depreciation Expense Income Tax Expense Insurance Expense Interest Expense Legal Fees Expense Miscellaneous Expense Rent Expense Salaries Expense Supplies Expense (Office) Supplies Expense (Racing) Totals

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