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Tony and Suzie graduate from college in May $2024$ 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 $1,2024,$ Tony and Suzie organize their new company as a corporation, Great Adventures Incorporated 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.

August $4$ The company purchases $14$ kayaks, paying $$24,000$ cash.

August $10$ Tony and Suzie conduct the first kayak clinic. In addition to the $$7,700$ that was received in advance from kayakers on July $30,$ the company receives additional cash of $$3,200$ from twenty new kayakers on the day of the clinic.

August $17$ Tony and Suzie conducts a second kayak clinic, and the company receives $$11,400$ cash.

August $24$ office supplies of $$1,800$ purchased on July $4$ are paid in full.

September $1$ To provide better storage of mountain bikes and kayaks when not in use, the company rents a storage shed for one year, paying $$4,680($ $$390$ per month$)$ in advance.

September $21$ Tony and Suzie conduct a rock$-$climbing clinic. The company receives $$14,000$ cash.

October $17$ Tony and Suzie conduct an orienteering clinic. Participants practice how to understand a topographical map, read an altimeter, use a compass, and orient through heavily wooded areas. The company receives $$19,500$ cash.

December $1$ Tony and Suzie decide to hold the company's first adventure race on December $15.$ Four$-$person teams will race from checkpoint to checkpoint using a combination of mountain biking, kayaking, orienteering, trail running, and rock$-$climbing skills. The first team in each category to complete all checkpoints in order wins. The entry fee for each team is $$550.$

December $5$ To help organize and promote the race, Tony hires his college roommate, Victor. Victor will be paid $$50$ in salary for each team that competes in the race. His salary will be paid after the race.

December $8$ The company pays $$1,700$ to purchase a permit from a state park where the race will be held. The amount is recorded as a miscellaneous expense.

December $12$ The company purchases racing supplies for $$2,500$ on account due in $30$ days. Supplies include trophies for the top$-$finishing teams in each category, promotional shirts, snack foods and drinks for participants, and field markers to prepare the racecourse.

December $15$ The company receives $$22,000$ cash from a total of forty teams, and the race is held.

December $16$ The company pays Victor's salary of $$2,000.$

December $31$ The company pays a dividend of $$3,500($ $$1,750$ to Tony and $$1,750$ to Suzie$).$

December $31$ Using his personal money, Tony purchases a diamond ring for $$5,400.$ Tony surprises Suzie by proposing that they get married. Suzie accepts and they get marrieId!

Post transactions from july $1$ through December $31$ and adjusting and closing entries on December $31$ to T Accounts

Do the income statement $,$ statement of stockholders equity and balance sheet

Record the entry to close the revenue accounts, record the entry to close the expense account, record the entry to close the dividends accounts

Prepare a post closing trial balance as of december $31,2024$

Answer rating: 100% (QA)

Lets break this down step by step TAccounts Assets Cash July 1 36000 from stock issuance August 4 24... View the full answer