Question

General Journal, Trial Balance, Statement of SE, Balance Sheet. Prefer online answer rather than on paper just so I can read the writing. Thank you!!!
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 31,000 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 $15,500 of common stock to Suzie. Jul. 1 Sell $15,500 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 $1,700 associated with incorporation. Jul. 4 Purchase office supplies of $1,300 on account. Jul. 7 Pay for advertising of $240 to a local newspaper for an upcoming mountain biking clinic to be held on July 15. Attendees will be charged $40 on the day of the clinic. Jul. 8 Purchase 10 mountain bikes, paying $16,600 cash. Jul. 15 On the day of the clinic, Great Adventures receives cash of $3,200 from 80 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 $3,700. 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 $130 in advance or $180 on the day of the clinic. Jul. 30 Great Adventures receives cash of $9,100 in advance from 70 kayakers for the upcoming kayak clinic. Aug. 1 Great Adventures obtains a $48,000 low-interest loan for the company from the city council, which has recently tiative encouraging business development related to outdoor activities. The loan is due in three years, and 6% annual interest is due each year on July 31. Aug. 4 The company purchases 14 kayaks, paying $19,500 cash.

Answer 1

Great Adventures Journal Enteries Date Particulars 1.7.2018 Cash a/c Dr. To Common Stock (Being Equal no. of stock issued to Tony and Suzie) Debit in $Credit in $ 31000 31000 4320 1.7.2018 Prepaid Insurance a/c Dr. To Cash (Being Insurance paid in cash) 360 per month Trial Balance For the period ending 31.7.2018 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 $ 23460 4320 1300 16600 1300 31000 6900 9100 1700 4320 1700 2.7.2018 Legal Fees a/c Dr. To Cash (Being Legal Fees paid in Cash) 1700 920 48300 48300 4.7.2018 1300 Office Supplies a/c Dr. To Accounts Payable (Being Supplies purchased on account) 1300 240 7.7.2018 Advertising Expense a/c Dr. To Cash (Being advertising expense paid to newspaper) 240 16600 8.7.2018 Mountain Bikes a/c Dr. To Cash (Being 10 Mountain Bikes purchased for cash) 16600 3200 15.7.2018 Cash a/c Dr. To Service revenue (Racing) (Being cash collected from Mountain Bike attendees) 3200 3700 22.7.2018 Cash a/c Dr. To Service revenue (Racing) (Being cash collected from Mountain Bike attendees) 3700 680 24.7.2018 Advertising Expense a/c Dr. To Cash (Being advertising expense paid to local radio station) 9100 30.7.2018 Cash a/c Dr. To Unearned Kayaking Service (Being Advance received for Kayaking service) 9100

Journal Enteries Date Particulars 1.8.2018 Cash a/c Dr. To Loan (Being Loan taken from city council) Debit in $Credit in $ 48000 48000 4.8.2018 19500 Kayaks a/c Dr. To Cash (Kayaks purchased in cash) 19500 3600 9100 10.8.2018 Cash a/c Dr. Deferred revenue a/c Dr. To Service revenue (Clinic) (Being revenue recognized) 12700 12000 17.8.2018 Cash a/c Dr. To Service revenue (Clinic) 12000 1300 24.8.2018 Accounts Payable a/c Dr. To Cash (Being Accounts Payable paid in cash) 1300 1.9.2018 3600 Prepaid rent a/c Dr. To Cash (Being rent paid in cash) 250 per month 3600 12000 21.9.2018 Cash a/c Dr. To Service revenue (Clinic) (Being services performed for cash) 12000 19100 17.10.2018 Cash a/c Dr. To Service revenue (Clinic) (Being services performed for cash) 19100 1400 8.12.2018 Miscellaneous expense a/c Dr. To Cash (Being permit purchased in cash) 1400 12.12.2018 Racing Supplies a/c Dr. To Accounts Payable (Being Racing supplies purchased on account) 2500 L 2500 24400 15.12.2018 Cash a/c Dr. To Service revenue (Racing) (Being services performed for cash) 24400 2800 16.12.2018 Salary expense a/c Dr. To Cash (Being salary paid to Victor in cash) 2800 | 4700| 31.12.2018 Dividend a/c Dr. _ To Cash (Being dividend paid to Tony and Suzie) 4700 31.12.2018 No Entry

Date Adjusting Enteries Particulars 31.12.2018 Depreciation a/c Dr. To Accumulated Depreciation (Being depreciation charged to asset) Debit in $ Credit in $ 72201 7220 31.12.2018 Insurance expense a/c Dr. 2160 To Prepaid Insurance (Being Insurance expense charged to Prepaid insurance) 2160 31.12.2018 Rent expense a/c Dr. 12001 To Prepaid Rent (Being rent expense charged to Prepaid Rent) 300 x 4 = 1200 1200 920 920 31.12.2018 Office Supplies expense a/c Dr. To Office Supplies (Being Supplies expense charged to Office Supplies.) 1300 - 380 31.12.2018 Interest expense a/c Dr. To Interest payable 48000 * 6% 5/12 (Being Interest expense accrued) 1200 1200