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, theyll 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 37,000 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 unadjusted trial balance as of July 31 (Chapter 2 Homework), the end of the first months operations is presented below Great Adventures Unadjusted Trial Balance July 31, 2021 CR DR Account Cash 30,590 Accounts Receivable 2.000 Prepaid Insurance Supplies-Office Equipment-Bikes Accounts Payable Deferred Revenue 4,920 1,900 11,900 1,900 11,200 Common Stock Service Revenue 37,000 3,600 Advertising Expense Legal Fees Expense 1,090 1,300 Totals 53,700 53,700 The following transactions took place during the remainder of 2021. Note the beginning balances from the July transactions (Ch 2 Homework) have already been loaded into the ledger Aug 1Great Adventures obtains a $30,000 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 4 The company purchases 14 kayaks, paying $40,320 cash in total. 10 Twenty kayakers pay $3,800 (S190 each) for the kayak clinic on the day of the clinic. Tony conducts the first kayak clinic Aug Aug. Aug. Aug Aug. 12 Collected
Tony and Suzie graduate from college in May 2021 and begin developing
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, theyll 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 37,000 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 unadjusted trial balance as of July 31 (Chapter 2 Homework), the end of the first months operations is presented below Great Adventures Unadjusted Trial Balance July 31, 2021 CR DR Account Cash 30,590 Accounts Receivable 2.000 Prepaid Insurance Supplies-Office Equipment-Bikes Accounts Payable Deferred Revenue 4,920 1,900 11,900 1,900 11,200 Common Stock Service Revenue 37,000 3,600 Advertising Expense Legal Fees Expense 1,090 1,300 Totals 53,700 53,700 The following transactions took place during the remainder of 2021. Note the beginning balances from the July transactions (Ch 2 Homework) have already been loaded into the ledger Aug 1Great Adventures obtains a $30,000 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 4 The company purchases 14 kayaks, paying $40,320 cash in total. 10 Twenty kayakers pay $3,800 (S190 each) for the kayak clinic on the day of the clinic. Tony conducts the first kayak clinic Aug Aug. Aug. Aug Aug. 12 Collected
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