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Required information RWP3-1 (Algo) Great Adventures Continuing Problem (The following information applies to the questions displayed be/ow.J 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. theyTI hold their first adventure races. These Will involve four-person teams that from checkpoint to the next using a combination of kayaking. mountain biking. orienteering. and trail running. In the Jong run. they plan to sell outdoor gear and devek)p a ropes course for outdoor enthusiasts. On July I. 2024. Tony and Suzie organize their new company as a corporation. Great Adventures incorporated The articles of incorporation state that the corporation will sell 37000 shares of common stock for Sl 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. July 1 July July July 2 July 4 July 7 July e July rs July 22 July 24 July 30 Sell $18. See of common stock to Suzie. Sell of comon stock to Tony. Purchase a oneyear insurance policy for SS, 160 (SOC per nonthi to cover Injuries to participants during outdoor clinics. Pay legal fees of associated Sith incorporation. Purchase office supplies of on account. Pay S36C to a local nevspaper for advertising to appear immediately for an upcoming mountain biking clinic to be held on July IS. Attendees will be charged SSC the day of the clinic. Purchase mountain bikes. paying S12, 9" cash. On the day of the clinic. Great Adventures receives cash of in total from SC bikers. Tony and Suzie conducts the mountun biking clinic. Because of the success of the first mountain biking clinic. Tony and Suzie holds another mountain biking clinic and the company recezves S2,8ee. Pay to a local radio station for advertising to appear imediately. A kayaking clinic be held on August te, and attendees can pay in advance or S19e on the day of the clinic. Great Adventures receives total cash of $8,400 in advance from 60 kayakers for the upcoming kayak clinic. The following transactions occur over the remainder of 2C24. August 1 August 4 August August 17 August 24 Great Adventures obtains a lowinterest loan for the company fro. 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. The company purchases 14 kayaks. paying S22.4 cash. tony and Suzie conduct the first kayak clinic. In addition to the that vas received in advance fron kayakers on July 30, the company receives additional cash of $3. see from tventy new kayakers on the day of the clinic. Tony and Suzie conducts a second kayak clinic. and the company receives S12, cash. Office supplies of purchased on July 4 are paid in full. September To provide better storage of mountain bikes and kayaks not in use, the conpany rents a storage shed for one year. payang S3,6e per month) in advance. September 21 Tony and Suzie conduct a rockclimbing clinic. The coapany receives $13.900 cash. October Decembe r Decembe r Decembe r Decembe r Decembe r Decembe r December Decembe r S 8 12 16 32 Tony and Suzie conduct an or:enteerxng clinic. Particzpants practice how to understand a topographical map, read an attineter, use a compass. and orient through heavily wooded areas. The company receives $19.800 cash. Tony and Suzie decide to hold the company's first adventure race on December IS. Fourperson teams race from checkpoint to checkpoint us.nq a combination of mountain biking. kayaking. orienteering, trait running, and rockclimbing skills. The first team in each category to complete au checkpoints in order wins. The entry fee for each team is To help organize and promote the race. Tony hires his college roommate. Victor. Victor be paid $6e In salary for each tear that competes in the race. HIS salary be paid after the race. The company pays $1.30 to purchase a permit from a state park where the race be held. The amount is recorded as a miscellaneous expense. The company purchases racing supplies for on account due in 30 days. Supplies include trophies for the topfinishing teams In each category, pronational shirts, snack foods and drxnks for participants. and field markers to prepare the racecourse. The company receives $22. cash from a total of forty teams, and the race is held. The company pays Victor's salary of The coapany pays a dividend of (S2,ese to Tony and S2.SO to Suzie). us:ng his personal money. tony purchases a diamond ring for $3,908. tony surprises Suzie by proposing that they get married. Suzie accepts and they get married! The following infotmatjon relates to year-end adjusting enttiS as of December 31.2024. a. Depreciation of the mountain bikes purchased on July 8 and kayaks purchased on August 4 totals $7,200. b. Six months' Of the one-year insurance policy purchased on July 1 has expired. C- Four months of the one-year rental agreement purchased on September 1 has expired d. Of the Sl.OOO Of office supplies purchased on July 4.$240 remains. e- Interest expense on the $36.000 loan obtained from the city council on August 1 should be recorded. f- Of the S2,700 of racing supplies purchased on December 12, $250 remains. g. Suzie calculates that the company owes $14,400 in income taxes. RWP3-I (Algo) Great Adventures Continuing Problem Part S 5. For the period July to December 31.2024. prepare an income statement. Statement Of stockholders' equity and classified balance Complete this question by entering your answers in the tabs below. Income Stockholders I Balance Sheet: For the period July 1 to December 31, 2024, prepare an income statement. income Statement For 31.2024 Revenues: Revenue (Clinic) Sewee Revenue (Racatg) Total Revenues Expenses : Advertising Expense Depreciation Expense Income Tax Expense Insurance Expense Interest Expense Legal Fees Expense Misceaanew.s Expense Rent Expense Searies Expense Supplies tomce) Supplies (Racirgl total Expenses S o Stmt ot oekh01der Equey