Question

can you please show how to do this step by step? thank you so much.

Great Adventures Problem AP3-1 (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 29,000 shares of common stock for $1 each. Each share of stock represents a unit of ownership. Tony and Suzle will act as co-presidents of the company. The following transactions occur from July 1 through December 31. Jul. 1 Sell $14,500 of common stock to Suzie. Jul. 1 Sell $14,500 of common stock to Tony. Jul. 1 Purchase a one-year insurance policy for $6,000 ($500 per month) to cover injuries to participants during outdoor clinics. Jul. 2 Pay legal fees of $1,900 associated with incorporation. Jul. 4 Purchase office supplies of $1,100 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. 8 Purchase 10 mountain bikes, paying $14,900 cash. Jul. 15 On the day of the clinic, Great Adventures receives cash of $3,000 from 50 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 $3,500. Jul. 24 Pay $850 to a local radio station for advertising to appear immediately. A kayaking clinic will be held on August 10, and attendees can pay $130 in advance or $180 on the day of the clinic. Jul. 30 Great Adventures receives cash of $7,800 in advance from 60 kayakers for the upconing klagak clinic. Aug. 1 Great Adventures obtains a $34,000 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 6% annual interest is due each year on July 31. Aug. 4 The company purchases 14 kayaks, paying $16,000 cash. Aug. 10 Twenty additional kayakers pay $3,600 ($180 each), in addition to the $7,800 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 $11,000 cash. Aug. 24 Office supplies of $1,100 purchased on July 4 are paid in full. Con Tout an hattar a Ensin harte when net AMR nantes et chart FAR 1 the

Answer 1

Great Adventures Inc. Income Statement For the year ended December 31, 2021
Revenues
Service Revenue ( Clinic)	$ 63,400
Sevice Revenue ( Racing )	20,800
Total Revenues		$ 84,200
Expenses
Depreciation Expense	7,000
Insurance Expense	3,000
Rent Expense	1,080
Legal Fees Expense	1,900
Advertising Expense	1,150
Salary Expense	1,600
Supplies Expense ( Office)	870
Supplies Expense ( Racing)	2,160
Miscellaneous Expense	1,600
Interest Expense	850
Income Tax Expense	13,200
Total Expenses		34,410
Net Income		$ 49,790

Great Adventures Inc. Statement of Stockholders Equity For the period ended December 31, 2021
	Common Stock	Retained Earnings	Total Stockholders Equity
Balance, Jan 1	$ 0	$ 0	$ 0
Issuance of common stock	29,000		29,000
Net income		49,790	49,790
Less: Dividends		(3,800)	(3,800)
Balance, Dec 31	$ 29,000	$ 45,990	$ 74,990

Great Adventures Inc. Balance Sheet Decemer 31, 2021
Assets		Liabilities
Current Assets		Current Liabilities
Cash	$ 95,910	Accounts Payable	$ 2,300
Supplies ( Office)	230	Interest Payable	850
Supplies ( Racing)	140	Income Taxes Payable	13,200
Prepaid Insurance	3,000	Total Current Liabilities	16,350
Prepaid Rent	2,160	Loan Payable	34,000
Total Current Assets	101,440	Total Liabilities	50,350
Long Term Assets		Stockholders Equity
Equipment ( Bikes)	14,900	Common Stock	29,000
Equipment ( Kayaks)	16,000	Retained Earnings	45,990
Accumulated Depreciation	(7,000)	Total Stockholders Equity	74,990
Long Term Assets, net	23,900
Total Assets	$125,340	Total Liabilities and Stockholders Equity	$125,340

6.

Date	General Journal	Debit	Credit
		$	$
Dec 31, 2021	Service Revenue ( Clinic)	$ 63,400
	Sevice Revenue ( Racing )	20,800
	Retained Earnings		84,200
	To close revenue accounts
Dec 31, 2021	Retained Earnings	34,410
	Depreciation Expense		7,000
	Insurance Expense		3,000
	Rent Expense		1,080
	Legal Fees Expense		1,900
	Advertising Expense		1,150
	Salary Expense		1,600
	Supplies Expense ( Office)		870
	Supplies Expense ( Racing)		2,160
	Miscellaneous Expense		1,600
	Interest Expense		850
	Income Tax Expense		13,200
	To close expense accounts
Dec 31, 2021	Retained Earnings	3,800
	Dividends		3,800
	To close dividends account