Question

Problem Chapters 1.6 0 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 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 515,000 of common stock to Surfe. Jul. 1 Sell 515,000 of conson stock to Tony. Tul. 1 Purchase a one-year insurance policy for $4,200 ($350 per month) to cover Injuries to participants during outdoor clinics. Jul. 2 Pay legal fees of $1,900 associated with incorporation Jui. 4 Purchase office supplies of $1,000 on account. Jul. 7 Pay for advertising of $350 to a local newspaper for an upcoming mountain biking clinic to be held on July 15. Attendees will be charged 550 on the day of the clinic. Jul. Purchase 10 mountain bikes, Dayne 510, 200 cash. Jul. 15 On the day of the clinic, Great Adventures receives cash of $3,000 frou 60 bikers. Tony conducts the mountain biking clinic. Jul. 22 Because of the success of the first sountain biking clinte, Tony holds another mountain biking clinic and the company receives $3,500. Jul. 24 Pay 5940 to a local radio station for advertising to appear inmediately. A kayaking clinic will be held on August 10, and attendees can pay $150 in advance or $200 on the day of the clinic Jul 30 great Adventures receives Cash of 57, 500 in advance from 50 kayakers for the upcoming kayak clinic < Prey 10 11 of 16 H Next >

Answer 1

Great Adventures Adjusted Trial Balance As at 31.12.2021 Adjusted Post Closing Debit in $ Credit in $ Debit in $ Credit in $ 111250 2100 3040 330 140 10200 111250 2100 3040 330 140 10200 7000 7000 16500 16500 2500 1150 13400 2500 1150 13400 46000 46000 Particulars Assets Cash 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 30000 30000 43510 4800 76900 6500 1290 1900 1700 2000 7000 2100 1520 670 2360 1150 13400 183450183450 Total 143560 143560