Question

Great Adventures Problem AP2-1 [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 36,000 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 $18,000 of common stock to Suzie. Jul. 1 Sell $18,000 of common stock to Tony. Jul. 1 Purchase a one-year insurance policy for $4,920 ($410 per month) to cover injuries to participants during outdoor clinics. Jul. 2 Pay legal fees of $1,700 associated with incorporation. Jul. 4 Purchase office supplies of $1,500 on account. Jul. 7 Pay $360 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 $50 the day of the elinie. Jul. 8 Purchase 10 mountain bikes, paying $10,100 cash. Jul. 15 On the day of the clinic, Great Adventures receives cash of $2,000 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 $2,500. Jul. 24 Pay $810 to a local radio station for advertising to appear immediately. A kayaking clinic 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 $5,500 in advance from 50 kayakers for the upcoming kayak clinie. Great Adventures Problem AP2-1 Part 2

Answer 1

Cash					Prepaid Insurance
Jul. 1	18000	Jul. 1	4920		Jul. 1	4920
Jul. 1	18000	Jul. 2	1700
Jul. 15	2000	Jul. 7	360
Jul. 22	2500	Jul. 8	10100		End. Bal.	4920
Jul. 30	5500
End. Bal.	28920
Supplies					Equipment
Jul. 4	1500				Jul. 8	10100
End. Bal.	1500				End. Bal.	10100
Accounts Payable					Deferred Revenue
		Jul. 4	1500				Jul. 30	5500
		Jul. 24	810
End. Bal.			2310		End. Bal.			5500
Common Stock					Service Revenue
		Jul. 1	18000				Jul. 15	2000
		Jul. 1	18000				Jul. 22	2500
End. Bal.			36000		End. Bal.			4500
Advertising Expense					Legal Fee Expense
Jul. 7	360				Jul. 2	1700
End. Bal.	360				End. Bal.	1700