Question

some of these are wrong but I'm not sure which, please help and show work. 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 30,000 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 $15,000 of common stock to Suzie. Jul. 1 Sell $15,000 of common stock to Tony. Jul. 1 Purchase a one-year insurance policy for $4,680 ($390 per month) to cover injuries to participants during outdoor clinics. Jul. 2 Pay legal fees of $1,900 associated with incorporation. Jul. 4 Purchase office supplies of $1,200 on account. Jul. 7 Pay for advertising of $210 to a local newspaper for an upcoming mountain biking clinic to be held on July 15. Attendees will be charged $30 on the day of the clinic. Jul. 8 Purchase 10 mountain bikes, paying $19, 100 cash. Jul. 15 On the day of the clinic, Great Adventures receives cash of $1,200 from 40 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 $1,550. Jul. 24 Pay $ 730 to a local radio station for advertising to appear immediately. A kayaking clinic will be held on August 10, and attendees can pay $110 in advance or $160 on the day of the clinic. Jul. 30 Great Adventures receives cash of $7,700 in advance from 70 kayakers for the upcoming kayak clinic. Aug. 1 Great Adventures obtains a $31,000 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 6% annual interest is due each year on July 31. Aug. 4 The company purchases 14 kayaks, paying $20,400 cash. Aug. 10 Twenty additional kayakers pay $3,200 ($160 each), in addition to the $7,700 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 $11,800 cash. Aug. 24 Office supplies of $1,200 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 $4,080 ($340 per month) in advance. Sep. 21 Tony conducts a rock-climbing clinic. The company receives $14,500 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 $18, 400 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 each category to complete all checkpoints in order wins. The entry fee for each team is $540. Dec. 5 To help organize and promote the race, Tony hires his college roommate, Victor. Victor will be paid $40 in salary for each team that competes in the race. His salary will be paid after the race. Dec. 8 The company pays $1,500 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 $2,200 on account due in 30 days. Supplies include trophies for the top-finishing teams in each category, promotional shirts, snack foods and drinks for participants, and field markers to prepare the racecourse. Dec. 15 The company receives $21,600 cash from a total of forty teams, and the race is held. Dec. 16 The company pays Victor's salary of $1,600.

Answer 1

From the information given above I have prepared Journal entries, Adjusting Entries for the period ending on 31, December of Great Adventures Inc.

Dr Cr C 1 Great Adventures Inc 2 3 Journal Entries Date 8, July Particulars Equipment Mountain bikes To Cash 19100 19100 4 1200 5 Date 6 1, July Particulars Dr Cr Cash 15000 To Common Stock 15000 (Cash received from Suzie for issue of shares) 15, July Cash To Service Revenue(Clinic) (Cash received from 40 bikers) 1200 22, July 1550 Cash To Service Revenue(Clinic) 1550 Cash 15000 To Common Stock 15000 ( Cash received from Tony for issue of shares) 24, July 730 9 10 1, July 11 12 13 14 1, July 15 16 17 2, July Advertising expense To Cash 730 4680 Prepaid Insurance To Cash 4680 30, July Cash 7700 To Unearned Service Revenue(Clinic) 7700 (Received cash in adavance from 70 Kayakers for the upcoming Kayak clinic at $110 each) 1900 Legal Fees To Cash 18 1900 19 20 4. July 21 1200 Office Supplies To Accounts Payable 1200 1, Aug Cash 31000 To Note payable 31000 (Obtained loan amounting to $31000 at a Interest rate of 6% annually) 210 23 7,July Advertising expense To Cash 210 4, Aug 20400 Equipment-Kayaks To Cash 20400

Date 31, Dec Date Particulars 1, Dec No entry (Announces to conduct Adventure race on 15, Dec and entry fee to be $540, since there is no transactions, no entry required) Particulars Dividends To Cash Dr 4100 4100 1 Date Particulars Dr 210, Aug Cash 3200 To Service Revenue(Clinic) 3200 4 (On the day of Kayak clinic, 20 additional kayakers pay at $160 each) 5 6 10, Aug Uneamed Service Revenue Clinic 7700 To Service Revenue (Clinic) 7700 8 (On 30, July received cash advance for Kayak dinic held on 10, Aug is 9 recognised as Service revenue on the day of services rendered) 5, Dec No entry (Tony hires victor to organise & promote race and will be paid $40 for each tem participates, salary will be paid later since there is no transactions, no entry required) 31, Dec No entry (uses his personal money to buy diamond ring, which is personal, not related to business hence no entry required) 10 1500 12 8,Dec Miscellaneous expense To Cash (paid towards permit fees) 1500 12,Dec 2200 11 17, Aug Cash 11800 To Service Revenue(Clinic) 11800 13 14 24, Aug Accounts Payable 1200 15 To Cash 1200 16 17 1, Sept Prepaid Rent 4080 To Cash 4080 19 (Company rents a storage shed for one year paying in advance 4080 20 to store bikes & kayaks) Supplies(Racing) To Accounts Payable 2200 18 15,Dec Cash 21600 To Service Revenue 21600 (Cash received from 40 teams at $540 each on the day of race) 14500 1600 22 21, Sept Cash To Service Revenue(Clinic) 23 14500 16,Dec Salary To Cash 1600 (paid salary to victor at $40 each for 40 teams participated) 24 25 17, Oct 19400 26 Cash To Service Revenue Clinic) 18400

Adjusting Entries Date 31, Dec Dr 7100 Particulars Depreciation Expense To Accumulated Depreciation (mountain bikes & Kayaks) Date Particulars Dr Cr 31, Dec Interest Expense 775 To Interest Payable 775 (Company borrowed Loan amounting to $31000 on 1, Aug at a interest rate of 6% annual, Interest from 1, Aug to 31, July=31000*6%= 1860 annually Interest Expense from 1, Aug to 31, Dec=(1860*5)/12=775) 7100 31, Dec 2080 31, Dec Insurance Expense 2340 To Prepaid Insurance 2340 (purchased insurance on 1, July amounting to $4680 annually From 1, July to 31, Dec=(4680*6)/12=2340) 2080 Supplies expense To Supplies (Racing) Purchases made in a year Less: Closing Balance Supplies expense 2200 120 2080 31, Dec Rent Expense 1360 To Prepaid Rent 1360 Company rented storage shed on 1, Sept amounting to $4080 annually 31, Dec From 1, Sept to 31, Dec=(4080*4)/12=1360) 13600 Income Tax expense To Income Tax Payable 13600 31, Dec 860 860 Supplies expense To Office Supplies Purchases made in a year Less: Closing Balance Supplies expense 1200 340 860