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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'li 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. July1July1July1Sel1$10,eeeofconmonstocktoSuzieSel1$18,eceofcormonstocktoTony.Purchaseaone-yearinsurancepolicy clinics. July 2 Pay legal fees of $1,906 associated with incorporation. July 4 Purchase office supplies of $1,909 on account. July 7 Pay $290 to a local newspaper for advertising to appear imediately for an upcoming nountain biking clinic to be held July 8 on July 15. Attendees will be charged $30 on the July 15 On the day of the cilnle, Great Adventures recelves cash of $1,200 in total from 40 bikers. Tony and Suzie conducts the mountain biking clinic. July 22 Because of the success of the first mountain biking clinic, Tony and suzie holds another mountain biking clinic and July 24 the company receives $1,700. Pay 5809 to a local radio station for advertising to appear imbediately, A kayaking clinic will be held on August 10, and attendees can pay $110in advance or $16e on the day of the clinic. July 3e: Great Adventures receives total cash of $5,500 in advance from 50 kayakers for the upconing kayak clinlc. The following transactions occur over the renainder of 2924. August 1 Great Adventures obtains a $32,000 low-interest loan for the company from the city council, which has recently passed an initiative encouraging business development related to outdoor activlties, The loan is due in three years, and 6x annual interest is due each year on July 31. August 4 The conpany purchases 14 kayaks, paying $19,600 cash. August:10 Tony and Suzle conduct the first kayak clinic. In addition to the $5,500 that was received in advance from kayakers on July 30, the company receives additional cash of $3,20e fron twenty new kayakers on the day of the clinic. August 17 Tony and suzle conducts a second kayak clinic, and the company receives $12,200 cash. August 24 office supplies of $1,90e purchased on July 4 are pald in ful1. Septenber 1 . To provide better storage of nountain bikes and kayaks when not in use, the corpany rents a storage shed for one year, paying $3,720 ( $310 per month) in advance. September 21 Tony and Suzie conduct a rock-climbing clinic. The conpany recelves $13,4e cash. October 17 Tony and suzie conduct an orienteering clinic. Participants practice hou to understand a topographical map, read an altimeter, use a conpass, and orlent through heavily wooded areas. The company recelves $19,709 cash. Decenber 1 Tony and Suzie decide to hold the corpany's first adventure race on Decenber 15 . Four-person teans will race fron checkpoint to checkpoint using a conbination of mountain biking, kayaking, orienteering, trail running, and rockclimbing skills. The first team in each category to conglete all checkpoints in order wins. The entry feo for each tean is $630. December 5 To help organdze and pronote the race, Tony hires his college roonmate, Victor. Victor will be paid 830 in salary for each tean that conpetes in the race. His salary w 11 be paid after the race. Decerber 8 The cospany pays $1,10e to purchase a pernit fron a state park where the race will be held. The anount is recorded as a miscellaneous expense. Decenber 12 . The conpany purchases racing supplies for $3,000 on account due in 30 days. 5 . findshing teans in each category, prosotional shirts, snack foods and drinks for pacticipants, and fleld markers to prepare the racecourse. December 15 The conpany receives $25,20e cash from a total of forty teans, and the race is held. Decenber 16 The company pays Victor's salary of $1,2ee. Decenber 31 The company pays a dividend of $4,70e($2,35e to tony and $2,350 to 54zie). Decenber 31 Using his personal money, Tony purchases dianond ring for s4, 100, Tony surprises suzie by proposing that they get sarried, suzie accepts and they get narriedi The following information relates to year-end adjusting entries as of December 31,2024. a. Depreclation of the mountain bikes purchased on July 8 and kayaks purchased on August 4 totals $7140 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 $1,900 of office supplies purchased on July 4,$240 remains. e Interest expense on the $32,000 loan obtained from the city council on August 1 should be recorded. f Of the $3,000 of racing supplies purchased on December 12,$170 remains. g. Suzie calculates that the company owes $14,400 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 ). 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'li 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. July1July1July1Sel1$10,eeeofconmonstocktoSuzieSel1$18,eceofcormonstocktoTony.Purchaseaone-yearinsurancepolicy clinics. July 2 Pay legal fees of $1,906 associated with incorporation. July 4 Purchase office supplies of $1,909 on account. July 7 Pay $290 to a local newspaper for advertising to appear imediately for an upcoming nountain biking clinic to be held July 8 on July 15. Attendees will be charged $30 on the July 15 On the day of the cilnle, Great Adventures recelves cash of $1,200 in total from 40 bikers. Tony and Suzie conducts the mountain biking clinic. July 22 Because of the success of the first mountain biking clinic, Tony and suzie holds another mountain biking clinic and July 24 the company receives $1,700. Pay 5809 to a local radio station for advertising to appear imbediately, A kayaking clinic will be held on August 10, and attendees can pay $110in advance or $16e on the day of the clinic. July 3e: Great Adventures receives total cash of $5,500 in advance from 50 kayakers for the upconing kayak clinlc. The following transactions occur over the renainder of 2924. August 1 Great Adventures obtains a $32,000 low-interest loan for the company from the city council, which has recently passed an initiative encouraging business development related to outdoor activlties, The loan is due in three years, and 6x annual interest is due each year on July 31. August 4 The conpany purchases 14 kayaks, paying $19,600 cash. August:10 Tony and Suzle conduct the first kayak clinic. In addition to the $5,500 that was received in advance from kayakers on July 30, the company receives additional cash of $3,20e fron twenty new kayakers on the day of the clinic. August 17 Tony and suzle conducts a second kayak clinic, and the company receives $12,200 cash. August 24 office supplies of $1,90e purchased on July 4 are pald in ful1. Septenber 1 . To provide better storage of nountain bikes and kayaks when not in use, the corpany rents a storage shed for one year, paying $3,720 ( $310 per month) in advance. September 21 Tony and Suzie conduct a rock-climbing clinic. The conpany recelves $13,4e cash. October 17 Tony and suzie conduct an orienteering clinic. Participants practice hou to understand a topographical map, read an altimeter, use a conpass, and orlent through heavily wooded areas. The company recelves $19,709 cash. Decenber 1 Tony and Suzie decide to hold the corpany's first adventure race on Decenber 15 . Four-person teans will race fron checkpoint to checkpoint using a conbination of mountain biking, kayaking, orienteering, trail running, and rockclimbing skills. The first team in each category to conglete all checkpoints in order wins. The entry feo for each tean is $630. December 5 To help organdze and pronote the race, Tony hires his college roonmate, Victor. Victor will be paid 830 in salary for each tean that conpetes in the race. His salary w 11 be paid after the race. Decerber 8 The cospany pays $1,10e to purchase a pernit fron a state park where the race will be held. The anount is recorded as a miscellaneous expense. Decenber 12 . The conpany purchases racing supplies for $3,000 on account due in 30 days. 5 . findshing teans in each category, prosotional shirts, snack foods and drinks for pacticipants, and fleld markers to prepare the racecourse. December 15 The conpany receives $25,20e cash from a total of forty teans, and the race is held. Decenber 16 The company pays Victor's salary of $1,2ee. Decenber 31 The company pays a dividend of $4,70e($2,35e to tony and $2,350 to 54zie). Decenber 31 Using his personal money, Tony purchases dianond ring for s4, 100, Tony surprises suzie by proposing that they get sarried, suzie accepts and they get narriedi The following information relates to year-end adjusting entries as of December 31,2024. a. Depreclation of the mountain bikes purchased on July 8 and kayaks purchased on August 4 totals $7140 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 $1,900 of office supplies purchased on July 4,$240 remains. e Interest expense on the $32,000 loan obtained from the city council on August 1 should be recorded. f Of the $3,000 of racing supplies purchased on December 12,$170 remains. g. Suzie calculates that the company owes $14,400 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 )

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