Return to question Item 13 Item 13 Part 1 of 8 0.05 points Item Skipped Required...

Solution

Great Adventures

Date	Account Titles and Explanation	Ref. Post	Debit	Credit
July 1, 2021	Cash		$10,000
	Common Stock			$10,000
	(To record sale of common stock to Suzie)
July 1, 2021	Cash		$10,000
	Common Stock			$10,000
	(To record sale of common stock to Tony)
July 1, 2021	Prepaid Insurance		$4,800
	Cash			$4,800
	(To record prepaid insurance)
July 2, 2021	Legal Fee Expenses		$1,500
	Cash			$1,500
	(To record payment of legal fee)
July 4, 2021	Office Supplies		$1,800
	Accounts Payable			$1,800
	(To record purchase of supplies on account)
July 7, 2021	Advertising Expense		$300
	Cash			$300
	(To record advertising expense)
July 8, 2021	Moutain Bikes		$12,000
	Cash			$12,000
	(To record purchase of 10 mountain bikes)
July 15, 2021	Cash		$2,000
	Service Revenue			$2,000
	(To record cash received for conducting the moutain biking clinic)
July 22, 2021	Cash		$2,300
	Service Revenue			$2,300
	(To record cash received for conducting the mountain biking clinic)
July 24, 2021	Advertising Expense		$700
	Cash			$700
	(To record payment of advertising expense)
July 30, 2021	Cash		$4,000
	Unearned Revenue			$4,000
	(To record unearned revenue)
Aug 1, 2021	Cash		$30,000
	Long-Term Loan			$30,000
	(To record loan taken from the city council)
Aug 4, 2021	Kayaks		$28,000
	Cash			$28,000
	(To record purchase of kayaks)
Aug 10, 2021	Cash		$3,000
	Unearned Revenue		$4,000
	Service Revenue			$7,000
	(To record cash received and earned portion of advance received for conducting the kayak clinic)
Aug 17, 2021	Cash		$10,500
	Service Revenue			$10,500
	(To record cash received for conducting the kayak clinic)
Aug 24, 2021	Accounts Payable		$1,800
	Cash			$1,800
	(To record payment for accounts payable)
Sept 1, 2021	Prepaid Rent		$2,400
	Cash			$2,400
	(To record prepaid rent)
Sept 21, 2021	Cash		$13,200
	Service Revenue			$13,200
	(To record cash received for conducting rock climbing clinic)
Oct 17, 2021	Cash		$17,900
	Service Revenue			$17,900
	(To record cash received for orienteering clinic)
Dec 8, 2021	Miscellaneous Expense		$1,200
	Cash			$1,200
	(To record payment for state permit)
Dec 12, 2021	Racing Supplies		$2,800
	Accounts Payable			$2,800
	(To record purchase of racing supplies on account)
Dec 15, 2021	Cash		$20,000
	Service Revenue			$20,000
	(To record racing revenue)
Dec 16, 2021	Salary Expense		$2,000
	Cash			$2,000
	(To record payment of salary)
Dec 31, 2021	Dividends		$4,000
	Cash			$4,000
	(To record payment of $2,000 dividend each to Tony and Suzie)
	Adjusting Entries:
Dec 31, 2021	Depreciation Expense		$8,000
	Accumulated Depreciation			$8,000
	(To record depreciation on mountain bikes and kayaks)
Dec 31, 2021	Insurance Expense		$2,400
	Prepaid Insurance			$2,400
	(To record expired portion of prepaid insurance; 4,800 x 6/12 = $2,400)
Dec 31, 2021	Rent Expense		$800
	Prepaid Rent			$800
	(To record expired portion of prepaid rent; 2,400 x 4/12 = $800)
Dec 31, 2021	Supplies Expense		$1,500
	Office Supplies			$1,500
	(To record cost of supplies used; 1,800 - 300 = $1,500)
Dec 31, 2021	Interest Expense		$900
	Interest Payable			$900
	(To record 6 months interest on loan; 30,000 x 6% x 6/12 = 900)
Dec 31, 2021	Racing Supplies Expense		$2,600
	Racing Supplies			$2,600
	(To record cost of racing supplies used)
Dec 31, 2021	Income Taxes Expense		$14,000
	Income Taxes Payable			$14,000
	(To record income taxes to be paid)