Question

Book 2021. Tony and Suzie organize their new company as a corporation, Great Adventures Inc. The articles of incorporation state that the corporation will sell 22,000 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 business activities occur during July for Great Adventures. Jul. 1 Sell $11,000 of common stock to Suste. Jul. 1 Soll $11,000 of common stock to Tony. 1 Purchase a one-year Insurance policy for $4,920 (5410 per month) to cover injuries to participants during outdoor clinics. Jul. 2 Pay legal fees of $1,900 associated with incorporation. Jel. 4 Purchase office supplies of $1,800 on account. Jul. 7 Pay $200 to a local newspaper for advertising to appear immediately for an upcoming mountain biking clinic to be held on July 15. Attendees will be charged 570 the day of the clinic. เ Jul. 8 Purchase 10 mountain bikes, paying $11,200 cash Jul. 15 on the day of the elinie, Great Adventures receives cash of $4.900 from 70 bikers. Tony conducte the mountain biking clinic. Jul. 22 Because of the success of the first mountain biking elinie, Tony holds another mountain biking elinie and the company receives $5,200. Jul. 24 Pay $890 to a local radio station for advertising to appear immediately. A kayaking cline will be held on August 10, and attendees can pay $130 in advance or $180 on the day of the clinie. Jul. 30 Great Adventures receives cash of $10,400 in advance from 80 kayakers for the upcoming kayak elinie. Print Hences Requirement General General Journal Ledger Trial Balance Prepare the journal entries for transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required in the first account field.) View transaction list Journal entry worksheet 2 11 > Dr BE

Answer 1

Solution:

Great Adventures Journal Entries Date Account Jul-01 Cash Common Stock Debit Credit 22000 22000 4920 Jul-01 Prepaid Insurance Cash 4920 1900 Jul-02 Legal Fees Cash 1900 1800 Jul-04 Office Supples Accounts Payable 1800 290 Jul-07 Advertising Expense Cash 290 11200 Jul-08 Mountain Bikes Cash 11200 4900 Jul-15 Cash Biking Revenues 4900 5200 Jul-22 Cash Biking Revenues 5200 890 Jul-24 Advertising Revenue Cash 890 10400 Jul-30 Cash Uneraned Revenue 10400

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