Question

I was able to finish some of this problem pls help with the unfinished portions

Required Information The following information applies to the questions displayed below.] 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 keyaking, 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 37,000 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 Jul. 1 Sell $18.500 of common stock to Suzie. Jul. 1 Sell $18.500 of common stock to Tony. Jul. 1 Purchase a one-year insurance policy for $4,320 ($360 per month) to cover injuries to participants during outdoor clinics. Jul. 2 Pay legal fees of $1,5ee associated with incorporation. Jul. 4 Purchase office supplies of $1,100 on account Jul. 7 Pay for advertising of $232 to a local newspaper for an upcoming mountain biking clinic to be held on July 15. Attendees will be charged $50 on the day of the clinic. Jul. & Purchase 18 mountain bikes, paying $12,500 cash. Jul. 15 On the day of the clinic, Great Adventures receives cash of $3,500 from 70 bikers. Tony conducts the mountain biking clinic. Jul. 22 Because of the success of the first mountain biking clinic, Tony holds another mountain biking clinic and the company receives $3,850. Jul. 24 Pay $680 to a local radio station for advertising to appear immediately. A kayaking clinic will be held on August 10, and attendees can pay $140 in advance or $19e on the day of the clinic. Jul. 30 Great Adventures receives cash of $7.ee in advance from se kayakers for the upcoming kayak clinic. Aug. 1 Great Adventures obtains a $42,eee 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 6% annual interest is due cach year on July 31. Aug. 4 The company purchases 14 kayaks, paying $14,400 cash. Aug. 18 Twenty additional kayakers pay $3,880 ($190 cach), in addition to the $7,eee that was paid in advance on July 30, on the day of the clinic. Tony conducts the first kayak clinic. Aug. 17 Tony conducts a second kayak clinic, and the company receives $11,280 cash. Aug. 24 Office supplies of $1,100 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 rents a storage shed for one year, paying $3,240 ($270 per month) in advance. Sep. 21 Tony conducts a rock-climbing clinic. The company receives $13,9e2 cash Oct. 17 Tony conducts an orienteering clinic. Participants practice how to understand a topographical map, read an altimeter, use a compass, and orient through heavily wooded areas. The company receives $19,90 cash. Dec. 1 Tony decides to hold the company's first adventure race on December 15. Four-person teams will race from checkpoint to checkpoint using a combination of mountain biking, kayaking, orienteering, trail running, and rock-climbing skills. The first team in cach category to complete all checkpoints in order wins. The entry fee for cach team is $680. Dec. 5 To help organize and promote the race, Tony hires his college roommate, Victor. Victor will be paid $60 in salary for each team that competes in the race. His salary will be paid after the race Dec. 3 The company pays $1,100 to purchase a permit from a state park where the race will be held. The amount is recorded as a miscellaneous expense. Dec. 12 The company purchases racing supplies for $2,see on account due in 30 days. Supplies include trophies for the top-finishing teams in cach category, promotional shirts, snack foods and drinks for participants, and field markers to prepare the racecourse. Dec. 15 The company receives $27, 280 cash from a total of forty teams, and the race is held. Dec. 16 The company pays Victor's salary of $2,400 Dec. 31 The company pays a dividend of $3,480 ($1,700 to Tony and $1,7ee to Suzie). Dec. 31 Using his personal money, Tony purchases a diamond ring for $3,702. Tony surprises Suzie by proposing that they get married. Suzie 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 $8,400. 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 $1,100 of office supplies purchased on July 4, $230 remains e. Interest expense on the $42.000 loan obtained from the city council on August 1 should be recorded. f. Of the $2.800 of racing supplies purchased on December 12. $190 remains. g. Suzie calculates that the company owes $13,300 in income taxes.

Answer 1

Great Adventures Journal Enteries Date Particulars 1.7.2021 Cash a/c Dr. To Common Stock (Being Equal no. of stock issued to Tony and Suzie) Debit in $Credit in $ 37000 37000 4320 1.7.2021 Prepaid Insurance a/c Dr. To Cash (Being Insurance paid in cash) 360 per month Trial Balance For the period ending 31.7.2021 Particulars Cash Prepaid Insurance Office Supplies Equipment(Bikes) Accounts Payable Common Stock Service revenue (Racing) Unearned Kayaking Service Legal Fees Advertising Expense Totals Debit in $ Credit in $ 32120 4320 1100 12500 1100 37000 7350 7000 1500 4320 1500 2.7.2021 Legal Fees a/c Dr. To Cash (Being Legal Fees paid in Cash) 1500 910 52450 52450 1100 4.7.2021 Office Supplies a/c Dr. To Accounts Payable (Being Supplies purchased on account) 1100 230 7.7.2021 Advertising Expense a/c Dr. To Cash (Being advertising expense paid to newspaper) 12500 8.7.2021 Mountain Bikes a/c Dr. To Cash (Being 10 Mountain Bikes purchased for cash) 12500 3500 15.7.2021 Cash a/c Dr. To Service revenue (Racing) (Being cash collected from Mountain Bike attendees) 3500 3850 22.7.2021 Cash a/c Dr. To Service revenue (Racing) (Being cash collected from Mountain Bike attendees) 3850 24.7.2021 Advertising Expense a/c Dr. To Cash (Being advertising expense paid to local radio station) 7000 30.7.2021 Cash a/c Dr. To Unearned Kayaking Service (Being Advance received for Kayaking service) 7000

Journal Enteries Date Particulars 1.8.2021 Cash a/c Dr. To Loan (Being Loan taken from city council) Debit in $Credit in $ 42000 42000 4.8.2021 14400 Kayaks a/c Dr. To Cash (Kayaks purchased in cash) 14400 3800 7000 10.8.2021 Cash a/c Dr. Deferred revenue a/c Dr. To Service revenue (Clinic) (Being revenue recognized) 10800 11200 17.8.2021 Cash a/c Dr. To Service revenue (Clinic) 11200 11001 24.8.2021 Accounts Payable a/c Dr. To Cash (Being Accounts Payable paid in cash) 1100 3240 1.9.2021 Prepaid rent a/c Dr. To Cash (Being rent paid in cash) 270 per month 3240 13900 21.9.2021 Cash a/c Dr. To Service revenue (Clinic) (Being services performed for cash) 13900 19900 17.10.2021 Cash a/c Dr. To Service revenue (Clinic) (Being services performed for cash) 19900 1100 8.12.2021 Miscellaneous expense a/c Dr. To Cash (Being permit purchased in cash) 1100 2800 12.12.2021 Racing Supplies a/c Dr. To Accounts Payable |(Being Racing supplies purchased on account) 2800 27200 15.12.2021 Cash a/c Dr. To Service revenue (Racing) (Being services performed for cash) 27200 2400 16.12.2021 Salary expense a/c Dr. To Cash (Being salary paid to Victor in cash) 2400 3400 31.12.2021 Dividend a/c Dr. To Cash (Being dividend paid to Tony and Suzie) 3400 31.12.2021 No Entry

Adjusting Enteries Date Particulars 31.12.2021 Depreciation a/c Dr. To Accumulated Depreciation (Being depreciation charged to asset) Debit in $ Credit in $ 8400 84001 31.12.2021 Insurance expense a/c Dr. 2160 To Prepaid Insurance (Being Insurance expense charged to Prepaid insurance) 2160 31.12.2021 Rent expense a/c Dr. 1080 To Prepaid Rent (Being rent expense charged to Prepaid Rent) 270 x 4 = 1080 1080 870 870 31.12.2021 Office Supplies expense a/c Dr. 1 To Office Supplies (Being Supplies expense charged to Office Supplies.) 1100 - 230 31.12.2021 Interest expense a/c Dr. To Interest payable 42000 * 6% * 5/12 (Being Interest expense accrued) 1050 1050 2610 31.12.2021 Racing Supplies expense a/c Dr. 2610 To Racing Supplies (Being racing supplies expense charged to racing supplies) 2800 - 190 31.12.2021 Income tax expense a/c Dr. 13300 To Income tax payable (Being income tax accrued) 13300 Debit in $ Credit in $ 35380 910 1500 1100 Closing Enteries Date Particulars 31.12.2021 Income Summary a/c Dr. To Advertising expense To Legal fees expense To Miscellaneous expense To Salary expense To Depreciation To Insurance expense To Rent expense To Office Supplies expense To Racing Supplies expense To Interest expense To Income tax expense (Being expenses closed to Income summary) 2400 8400 2160 1080 870 2610 1050 13300 83000 7350 31.12.2021 Service revenue (Clinic) a/c Dr. Service revenue (Racing) a/c Dr. To Income Summary (Being Revenues closed to Income summary) 90350 54970 31.12.2021 Income Summary a/c Dr. To Retained Earnings |(Being profit transferred to retained earnings) 54970 3400 31.12.2021 Retained Earnings a/c Dr. To Dividends (Being dividends charge to Retained Earnings) 3400

Adjusted Trial Balance As at 31.12.2021 Adjusted Post Closing Debit in $ Credit in $ Debit in $ Credit in $ Particulars Assets Cash 124480 2160 2160 230 190 12500 124480 2160 2160 230 190 12500 8400 8400 14400 14400 2800 1050 13300 2800 1050 13300 42000 42000 37000 37000 51570 Prepaid insurance Prepaid rent Supplies (Office) Racing Supplies Equipment(Bikes) Accumulated Depreciation Kayaks Liabilities Accounts payable Interest payable Income tax payable Deferred revenue Loan Equity Common stock Retained Earnings Dividend Revenue Service revenue (Clinic) Service revenue (Racing) Expenses Advertising expense Legal fees expense Miscellaneous expense Salary expense Depreciation Insurance expense Rent expense Office Supplies expense Racing Supplies expense Interest expense Income tax expense Total 3400 83000 7350 910 1500 1100 2400 8400 2160 1080 870 2610 1050 13300 194900 194900 156120 156120 Retaned Earnings Dividends 3400 Bal Income Summary Bal. 51570 54970 54970 54970

83000 7350 90350 Statement of Income For the period ending 31.12.2021 Service revenue (Clinic) Service revenue (Racing) Totals Less: Advertising expense Legal fees expense Miscellaneous expense Salary expense Depreciation Insurance expense Rent expense Office Supplies expense Racing Supplies expense Interest expense Income tax expense Net Income 910 1500 1100 2400 8400 2160 1080 870 2610 1050 13300 35380 54970 Statement of Retained Earnings Net Income Less:Dividends 31.12.2021 54970 -3400 51570 Statement of Retained Earnings For the period ending 31.12.2021 1.8.2021 Add:Net Income Less:Dividends Common Retained Stock Earnings 37000 54970 -3400 37000 51570 Total Equity 37000 54970 -3400 88570

Amounts in $ Amounts in $ Balance sheet As at 31.12.2021 Assets Current Assets Cash Prepaid insurance Prepaid rent Supplies (Office) Racing Supplies 2800 Amounts in $ Amounts in $ Liabilities Current Liabilities 124480 Accounts payable 2160 Interest payable 2160 Income tax payable 230 190 129220 Non Current Liabilities Loan 1050 13300 17150 42000 Non Current Assets Equipment(Bikes) Kayaks Accumulated Depreciation Total Assets 12500 14400 -8400 Shareholders Equity Common stock 37000 18500 Retained Earnings 51570 147720 Total Liabilities & Shareholders Eq. 88570 147720