Question

please complete all required parts and add corrections for the general journal.

N 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 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 Soll $10.000 of common stock to Sarie. Jul. 1 Sell $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 clinica. 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. B 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 olinie. Jul. 22 Because of the success of the first mountain biking clinic, Tony holds another mountain biking clinic and the company receives $2,300. Jul. 24 Pay $700 to a local radio station for advertising to appear immediately. 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 cash of $4,000 in advance from 40 kayakers for the upcoming kayak clinic. Aug. 1 Great Adventures obtains a $30,000 low-interest loan for the company from the city council, which has recently Daned an initiative encouraging business development related to outdoor activities. The loan is due in three years, and 6t annual interest is due each year on July 31. A . 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 conducte the first kayak clinic. Aug. 17 Tony conducts a second kayak clinic, and the company receives $10,500 cash. Aug. 24 Office Supplies of $1,000 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 (5200 per month) in advance. Sep. 21 Tony conducts 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, we a compass, and orient through heavily wooded areas. The company receives $17,900 cash. Dee. Tony decides to hold the company's first adventure race on December 15. Your person teams will race from pharmint than inte hitta f tninin TURVO TIRPA 41

heres a list of the transactions that should be fixed or added. i finished most of the journal entry

Answer 1

	Account Titles	Debit	Credit
Aug-01	Cash	$    30,000
	Notes Payable		$         30,000
Dec-01	No entry
Dec-05	No entry
Dec-31	Interest Expense	$          750		=30000*6%*5/12
	Interest Payable		$               750

Income Statement
Revenues
Service Revenue (Clinic)	$                52,900
Service Revenue (Racing)	$                20,000
Total Revenues		$                72,900
Expenses :
Advertising Expense	$                  1,000
Legal Fee Expense	$                  1,500
Miscellaneous Expense	$                  1,200
Salaries Expense	$                  2,000
Depreciation Expense	$                  8,000
Insurance Expense	$                  2,400
Rent Expense	$                      800
Supplies Expense (Office)	$                  1,500
Supplies Expense (Racing)	$                  2,600
Interest Expense	$                      750
Income Tax expense	$                14,000
Total Expenses		$                35,750
Net Income		$                37,150

Statement of Stockholder's Equity
	Common Stock	Retained Earnings	Total Stockholder's Equity
Beginning Balance	$                         -	$                         -	$                                  -
Add : Shares issued	$                20,000		$                         20,000
Add : Net Income		$                37,150	$                         37,150
Less : Dividend		$                  4,000	$                           4,000
Ending Balance	$                20,000	$                33,150	$                         53,150

Balance Sheet
Assets			Liabilities
Current Assets			Current Liabilities
Cash	$                64,200		Accounts Payable	$                  2,800
Accounts Receivable			Deferred Revenue	$                         -
Supplies (Office)	$                      300		Interest Payable	$                      750
Supplies (Racing)	$                      200		Income Tax Payable	$                14,000
Prepaid Insurance	$                  2,400		Current Maturity of Notes Payable	$                10,000
Prepaid Rent	$                  1,600		Total Current Liabilities		$          27,550
Total Current Assets		$                68,700	Long term Liabilities
			Notes Payable		$          20,000
Long Term assets			Total Liabilities		$          47,550
Property, Plant and Equipment			Stockholder's Equity
Equipment (Bikes)	$                12,000		Common Stock	$                20,000
Equipment (Kayaks)	$                28,000		Retained Earnings	$                33,150
Less Accumulated Depreciation	$                 -8,000	$                32,000	Total Stockholder's Equity		$          53,150
Total Assets		$              100,700	Total Liabilities & Stockholder's Equity		$        100,700