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.

1. Create Adjusting Journal using info below

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

2. After 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 rating: 100% (QA)

Great Adventures Inc Journal entries No Date Accounts 1 1Aug Cash Notes Payab... View the full answer