Question

please correct the general journal transactions. i have completed most of the transactions. transactions 12, 20, 21, 27, and 32 have issues. then record the closing entry for revenues, expenses, and cash dividends for transactions 35,36, and 37 if necessary

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 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 transactions occur from July 1 through December 31. Jul. 1 Sell $10,000 of common stock to Suzie. Jul. 1 soll $10,000 of common stock to Tony. Jul. 1 Purchase a one-year insurance policy for $4,800 ($400 per month) to cover injuries to participants during outdoor clines. Jul. 2 Pay legal fees of $1,500 associated with incorporation. Jul. 4 Purchase office supplies of $1,800 on account. Jul. 7 Pay for advertising of $300 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 10 mountain bikes, paying $12,000 cash. Jul. 15 on the day of the clinic, Great Adventures receives cash of $2,000 from 40 bikers. Tony conducts the mountain biking elinie. Jul. 22 Because of the success of the first mountain biking clinic, Tony holds another mountain biking elinie and the company receives $2,300. Jul. 24 May $700 to a local radio station for advertising to appear immediately. A kayaking clinic will be held on August 10, and attendees can pay $100 in advance or $150 on the day of the clinic. Jul. 30 Great Adventures receives canh of $4,000 in advance from 40 kayakers for the upcoming kayak olinie. Aug. 1 Great Adventures obtains a $30,000 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 68 annual interest is due each year on July 31. Aug. 4 The company purchases 14 kayaks, paying $28,000 cash. Aug. 10 Twenty additional kayakers pay $3.000 ($150 each), in addition to the $4.000 that was paid in advance on July 30, on the day of the clinic. Tony conducts the first kayak olinic. Aug. 17 Tony conducta a second kayak elinie, and the company receives $10,500 cash. Aug. 24 office supplies of $1,800 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 $2,400 ($200 per month) in advance. Sep. 21 Tony conducta a rock-climbing clinic. The company receives $13,200 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 $17,900 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 roak-climbing skills. The first team in each category to complete all checkpoints in order wins. The entry fee for each team is $500. Dec. 5 To help organize and promote the race, Tony hires his college roommate, Vietor. Victor will be paid $50 in salary for each team that competes in the race. His salary will be paid after the race. Dec. 8 The company pays $1,200 to purchase a pornit from a state park where the race will be held. The amount 18 recorded as a miscellaneous expense.

Answer 1

Errors highlighted below

Great Adventures Inc. Journal entries No. Date Accounts 121-Aug Cash Notes Payable Credit Calculation 30,000 30,000 20 1-Dec No entry 21 5-Dec No entry 27 31-Dec No entry Debit Credit Adjusting entries No. Date Accounts 32 31-Dec Interest expense Interest Payable Calculation =30,000*6%*5/12 750 750 35 Closing entries 31-Dec Service revenue (Clinic) Service revenue (Racing) Retained Earnings 52,900 20,000 72,900 36 35,750 31-Dec Retained Earnings Advertising expense Legal fees expense Misc expense Salary expense Depreciation expense Insurance expense Rent expense Supplies (Office) expense Supplies (Racing) expense Interest expense Income tax expense 1,000 1,500 1,200 2,000 8,000 2,400 800 1,500 2,600 750 14,000 37 4,000 31-Dec Retained Earnings Dividends 4,000