Question

ZAVE TONUWmy ww Lon appes i wie Yuest Ursprayeu veuw. Tony and Suzie graduate from college in May 2018 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, 2018, Tony and Suzie organize their new company as a corporation, Great Adventures Inc. The articles of incorporation state that the corporation will sell 33,000 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 $16,500 of common stock to Suzie. Jul. 1 Sell $16.500 of common stock to Tony. Jul. 1 Purchase a one-year insurance policy for $3,840 ($320 per month) to cover injuries to participants during outdoor clinics. Jul. 2 Pay legal fees of $1,100 associated with incorporation. Jul. 4 Purchase office supplies of $1,400 on account. Jul. 7 Pay for advertising of $380 to a local newspaper for an upcoming mountain biking clinic to be held on July 15, Attendees will be charged $30 the day of the clinic. Jul. 8. Purchase 10 mountain bikes, paying $10,400 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 $1,650. Jul. 24 Pay for advertising of $830 to a local radio station for a kayaking clinic to be held on August 10. Attendees can pay $100 in advance or $150 on the day of the clinic Jul. 30 Great Adventures receives cash of $7.000 in advance from 70 kayakers for the upcoming kayak clinic. < Prev of 3 Nex

Answer 1

Particulars	Debit	Credit
Common Stock		33,000
Cash (working1)	5,500
Prepaid Insurance	3,520
Insurance Expenses	320
Incorporation Expenses	1,100
Office Supplies	1,400
Accounts Payable		1,400
Advertisment Expenses (830+380)	1,210
Equipment (10400*3)	31,200
Service Revenue (1200+1650)		2,850
Unearned Revenue		7,000
	44,250	44,250
Working 1
Cash
Opening	33,000.00
Insurane	(3,840.00)
Incorporation Expenses	(1,100.00)
Advertisment Expenses	(1,210.00)
Equipment	(31,200.00)
Service Revenue	1,200.00
Service Revenue	1,650.00
Unearned Revenue	7,000.00
Closing Balance	5,500.00