Question

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 bikina 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 39,000 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 $19,500 of common stock to Suzie. Jul. 1 Sell $19,500 of common stock to Tony. Jul. 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 $1,200 associated with incorporation. Jul. 4 Purchase office supplies of $1,900 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 $60 on the day of the clinic. Jul. Purchase 10 mountain bikes, paying $17,200 cash. Jul. 15 On the day of the clinic, Great Adventures receives cash of $3,000 from 50 bikers. Tony conducts the mountain biking elinie. Jul. 22 Because of the success of the first mountain biking clinie, Tony holds another mountain biking elinie and the company receives $3,300. Jul. 24 Pay $850 to a local radio station for advertising to appear immediately. A kayaking olinie 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 $33,000 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 69 annual interest is due each year on July 31. Aug. 4 The company purchases 14 kayaks, paying $23,400 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 $11,600 cash. Aug. 24 office supplies of $1,900 purchased on July 4 are paid in full.

Answer 1

CALCULATION OF SERVICE REVENUE(CLINIC)=

biking clinic revenue
on july 15=3000
on july 22=3300
Total=6300

kayak clinic revenue
july 30=7700
aug.10=3200
aug 17=11600
Total=22500

rock climb clinic revenue
sep 21=13400

orienteering clinic revenue
oct 17=19300

Adding all the above revenue from clinic=(6300+22500+13400+19300) =61500

SERVICE REVENUE(CLINIC)=61500

CALCULATION OF SERVICE REVENUE FROM RACING

racing revenue from the entry fee collected from 40 racing teams
dec 15=26000

SERVICE REVENUE(RACING)=26000