Question

Create Daily Journal With following information

1. Aug 1 - Great Adventures obtains $30000, low interest loan for the company. Loan is Due in 3 Years and 6% annual interest is due each year on July 31

2. Aug 4 - The Company purchases 14 kayaks, paying 40,320 cash in total

3. Aug 10 - 20 Kayakers pay $3,800 for clinic.

4. Aug 12 - Collected 2000 from July clinic

5 Aug 17- Tony Conducts second Kayak clinic and the company receives 10500 cash

6. Aug 24 Paid for supplies purchased on account on July 4 in full, $1,900

7. Sep 1 Company Rents storage for mountain bikes on kayaks when not in use for one year paying $2,400 ($200 Per month)

8. Sep 21 Tony conducts a rock climber clinic. The company bills clients $13,200 that is due in 30 Days

9. Oct 17 Paid the Local Radio Station $1,200 for advertising Great Adventures for the remainder of October

10. Oct 20. Collected 80% of amount due from the Sep 21 Rock Climbing Clinic

11. Dec 1 Tony decides to hold company first adventure race on Dec 14. The entry fee will be $500 for each team

12. Dec 5 to help with the race, Tony hires Victor will be paid $50 salary for each team that competes in race. Hos salary will be paid after the race

13. Dec 8 Company pays $1,200 for permit in state park where the race will be. Amount will be recorded as a MISC expense

14. Dec 12 - The company purchases racing supplies $2,800 on account due in 30 Days.

15 Dec 15 The company receives $20,000 Cash from a total of 40 teams that are in the race.

16 Dec 16 Company pays Victors Salary (ignore Taxes)

17 Dec 31 The Company pays divided of $4000 ($2000 to Tony and $2000 to Suzie)

18 Dec 31 Using personal money Tony purchases a diamond ring for $4,500. Tony surprises Suzie by proposing, she accepts, and they get married.  

2. Create Adjusting Journal

1. Depreciations of mountain bikes purchase July 8 was $1090 and kayaks purchased on August 4 was $5600
2. Record adjustments for one year insources policy purchased on July 1 (One Year policy - $4,920- $410 Per Month)
3. Record adjustment for one-year rental agreement purchased on September 1
4. Record adjustments for deferred revenue from July, all revenue was earned at the August 10 clinic
5. Of the $1900 of office supplies purchased in July, $300 remains
6. Interest expense on the $30000 loan obtained, on August 1^st should be recorded
7. Of the $2800 of racing supplies purchased on Dec 12, $200 remains
8. Suzie calculates that the company owes $14000 in income taxes

3. After Daily Journal Create a Closing Journal

-Dec 31 Close the revenue Accounts

-Dec 31 Close the Expense Accounts

-Dec 31 Close the Dividend Accounts

3. Create General Ledger (Aug 1 Balance already included)

		Cash
No.	Date	Debt	Credit	Balance
BB	Aug 1			30,590

	Accounts Receivable
No.	Date	Debt	Credit	Balance
BB	Aug 1			2000

Create the rest in the same format as above

Supplies Office - Aug 1 Balance 1,900

Supplies Racing -

Prepaid Insurance - Aug 1 - Balance 4,920

Prepaid Rent -

Equipment - Kayaks

Equipment - Bikes - Aug 1 - Balance 11,900

Accumulate Depreciation - Bikes

Accumulate Depreciation - Kayaks

Accounts Payable - Aug 1 - Balance 1,900

Interest Payable

Income Tax Payable

Deferred Revenue Aug 1 - Balance 11,200

Notes Payable

Common Stock Aug 1 - Balance 37,000

Retained Earnings

Dividends

Service Revenue - Aug 1 - Balance 3,600

Advertising Expense Aug 1 - Balance 1,090

Depreciation Expense

Supplies Expense - Office

Supplies Expense - Racing

Salaries Expense

Interest Expense

Rent Expense

Income Tax Expense

Legal Fees Expense Aug 1 - Balance 1,300

Insurance Expense

Miscellaneous Expense

4. Create Trail Balance

5. Create Income Statement, Statement of Stockholders Equity, and Classified Balance Sheet

Answer 1

35 Credit Debit 30,000 36 Date Account Title 01-Aug Cash Notes Payable (To record loan taken) 37 30,000 38 39 40 40,320 41 04-Aug Equipment (Kayaks) Cash (to record purchase of Kayaks) 40,320 42 43 44 3,800 45 10-Aug Cash Service Revenue (To record service revenue received) 3,800 46 47 2,000 48 49 12-Aug Cash Accounts Receivable (To record amount collected) 2,000 50 51 52 10,500 53 17-Aug Cash Service Revenue (To record service revenue received) 10,500 54

56 1,900 57 24-Aug Accounts Payable Cash (To record payment of Accounts Payable) 1,900 58 59 60 2,400 61 01-Sep Prepaid Rent Cash (To record purchase of rental policy) 2,400 62 63 64 13,200 65 21-Sep Accounts Receivable Service Revenue (To record service revenue received) 13,200 66 67 68 1,200 17-Oct Advertising expense Cash (To record advertising expense) 69 70 1,200 10,560 71 72 73 74 75 76 20-Oct Cash Accounts Receivable (To record amount collected on account) 10,560 01-Dec No Journal entry

76 01-Dec No Journal entry 77 78 05-Dec No Journal entry 79 80 1,200 81 08-Dec Miscellaneous expense Cash (To record payment of expense) 1,200 82 83 84 2,800 85 12-Dec Racing Supplies Accounts Payable (To record prchase of supplies on account) 2,800 86 87 88 20,000 89 15-Dec Cash Service Revenue (To record service revenue received) 20,000 90 91 92 2,000 16-Dec Salary expense Cash (To record payment of salaries) 2,000 93 94 95 96 4,000 97 31-Dec Dividend Cash (To record payment of dividend) 4,000 98

31-Dec No entry as the ring has been purchased by personal money 100 101 102 Adjusting Entries 103 104 6,690 105 31-Dec Depreciation Expense Accumulated Depreciation-Bikes Accumulated Depreciation - Kayaks (To record depreciation expense) 1,090 5,600 106 107 108 109 2,460 110 31-Dec Insurance expense (4920/12*6) Prepaid insurance (To record expired insurance) 2,460 111 112 113 800 114 31-Dec Rent expense (200*4) Prepaid Rent (To record expired rent) 800 115 116 117 11,200 31-Dec Deferred Revenue Service Revenue (To record revenue earned) 118 119 11,200

121 1,600 122 31-Dec Office Supplies expense(1900-300) Office Supplies (T record supplies consumed during the Year) 1,600 123 124 125 750 126 31-Dec Interest Expense (30000*6%*5/12) Interest Payable (To record accrued interest expense) 750 127 128 129 2,600 130 31-Dec Racing Supplies expense (2800-200) Racing Supplies (T record supplies consumed during the Year) 2,600 131 132 133 14,000 134 31-Dec Income Tax Expense Income Tax Payable (To record income tax expense) 14,000 135 136 137 Closing Entries 138 62,300 139 140 31-Dec Service Revenue Income Summary (To close Revenues) 62,300 141

144 35,690 145 146 147 148 149 150 Income Summary Legal Fees Expense Advertising Expense Miscellaneous expense Salary expense Depreciation Expense Insurance expense Rent expense Office Supplies expense Interest Expense Racing Supplies expense Income Tax Expense (To close expenses) 1,300 2,290 1,200 2,000 6,690 2,460 800 1,600 750 2,600 14,000 151 152 153 154 26,610 155 156 157 158 159 160 161 162 Income Summary Retained Earnings (To close Net Income) 26,610 4,000 163 Retained Earnings Dividends (T close Dividends) 4,000 164

166 167 168 169 170 Note; when there are multiple questions as per Chegg Policy we are allowed to answer firstquestion However I have solved first three parts.